Employers subsidy for salary during COVID-19 extended
The NOW scheme, under which employers can receive a subsidy for their salary costs, will be extended for a third time.
The following are the most important highlights of NOW 3.0:
- The period between 1 October 2020 and 1 July 2021 will be divided into 3 time periods, each three months:
-Period 1: October – November - December
-Period 2: January – February - March
-Period 3: April – May – Jun
- During period 1, a revenue loss of 20% is required to be eligible for subsidy under the NOW scheme. For period 2 and period 3, a minimum revenue loss of 30% is required;
- The subsidy will decrease with each period: during period 1, employers will receive a subsidy for 80% of their salary costs, during period 2, employers will receive 70% and during period 3, employers will receive 60%;
- The total wage sum over the periods is allowed to decrease with respectively 10% (period 1), 15% (period 2) and 20% (period 3) without any consequences to the total subsidy amount;
- Employers will no longer receive a lower subsidy in case of dismissals based on business economic grounds;
- As from period 3, the maximum wage to be compensated for per employee will be 1 x the maximum daily wage (+/-. EUR 5,000 per month).