The latest developments around the NOW measure for Sustained Employment


A short introduction of NOW

Due to the coronavirus, you may have less or no work for your employees. As result, you will have less turnover or other income (e.g. subsidy income). You can claim NOW subsidy for a substantial compensation of your employees’ wages. In this way, you can continue to pay employees with permanent and temporary contracts. The Employee Insurance Agency (UWV) will provide an 80% advance.


The application periods for NOW 1 and 2 are closed. NOW 3 is currently active as an extension of NOW 1/2 until 1 July 2021 and consists of 3 periods of 3 months each. This means you can apply for 3 months at a time. During the first period (October-December) the minimum limit for your turnover loss percentage will remain 20%. From 1 January 2021 this percentage will be increased to 30%. You can apply for NOW 3 for the months October, November and December retroactively from 16 November until 13 December 2020.

There are some conditions if you want to claim NOW 3, for example you are obliged to stimulate your employees to take retraining or reskilling courses and you are not allowed to pay out bonuses or dividends during the NOW period. Please make sure you will fit all the conditions before applying for NOW 3.

Final settlement NOW 1 & 2

For NOW 1 and NOW 2 companies have received an advance payment of 80% of the amount they applied for. The final settlement is based on the actual loss of turnover. This means advance payment may be supplemented, but if a company has performed above expectations, they may have to pay back (part of the) advance payment. The amount of the NOW subsidy will also be lowered if the total wage bill has decreased during the period for which you applied for.

Start submission Final submission date Third party statementFinal submission date Auditor’s statement Final determination
Total Application: 25k -125k
Advance 20k-100k
Total Application > 125.000
Advance >100k
NOW 1From 7 October24 weeks = 24 March 202138 weeks = 30 June 202152 weeks after submission of final application
NOW 2From 16 November
Or later in case the revenue period extends to ultimo November
38 weeks = 3 May 2021 or 17 May 2021 at the latest38 weeks = 9 August 2021 or 23 August 2021 at the latest52 weeks after submission of final application

Conditions for final settlement vary depending on the amount of subsidy you applied for:

  • You applied for a subsidy of less than €25,000 and the advance payment did not exceed €20,000.
    No external check is needed. There will be random checks and risk analyses.
  • You received an advance payment of between €20,000 and €100,000.
    You need a third-party statement (“de derdenverklaring”). F.INSTITUTE can provide this statement.
  • You applied for a subsidy of €125,000 or more.
    You need an auditor’s opinion. This is also the case if you received an advance payment of less than €100,000 but the amount of the subsidy is determined at €125,000 or more in the final settlement. F.INSTITUTE can provide assistance to ensure an efficient and accurate audit.

After submitting the final NOW calculation, there is no longer the possibility to correct this. This is why we advise to withhold the final settlement of the NOW 1 and NOW 2 until the financial year 2020 is closed, to achieve more assurance regarding actual turnover recognition.

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