• Uniform Wage Definition
  • May 5, 2011 | Author: Eugene Weultjes
  • Law Firm: Greenberg Traurig, LLP - Amsterdam Office
  • The legislative proposal uniform wage definition was been accepted by the Lower House on April 12. The legislative proposal introduces a uniform wage definition for the levy of wage taxes/social security contributions and social insurance premiums, as well as the income related contribution for the Healthcare Insurance Act.

    The Lower House has accepted five motions: In the motions, the government is requested:

    • to measure, amongst other, on the basis of pay slips the development of the wage costs of companies following the entry into force of the Law uniform wage definition, and to present to the Lower House an evaluation one year after the effective date of the law;
    • to measure the income effect of supportive measures for employees within one year after the law entering into force, to evaluate the achieved simplification, and to inform the Lower House on this;
    • to consult with the trade unions and employers’ organizations to see whether the Witteveen context can be based on the uniform wage definition, and to present the results of the consultation within four months to the Lower House;
    • to spread future increases of the income related contribution for the health insurance equally over all groups within our society, and to not present this disproportionally to employers and employees;
    • to guarantee for the future the control of the General Unemployment fund by employees representatives.

    As noted in our last newsletter, the target for the uniform wage definition to enter into force is January 1, 2013.