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    Awf premium lower

    As of August 1, the premium rate of the Algemeen Werkloosheidsfonds (Awf – General Unemployment Fund) will be decreased for the rest of the year 2021. This decrease is related to budget becoming available after it was decided to repeal the  job-related investment discount (BIK).

    Decrease

    The low premium rate – on the wages of employees with permanent contracts – will be decreased from 2.7% to 0.34%. The premium rate on the wages of other employees will fall from 7.7% to 5.34%.  Both premium rates are subject to a decrease of 2.36 percentage points. The difference between high and low Awf premium must statutorily be maintained at 5 percentage points. The decrease applies to wages earned by employees as of August 1, 2021. For employers who file their payroll tax returns four-weekly, the reduction applies to wages earned as of August 16, 2021 (period 9). If you have to revise the Awf premium from low to high, you will have to pay the applicable high premium rate over the period for which you made the earlier declaration. 

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