The private supplementation of WW (unemployment benefits) and WGA (unemployment benefits for partially incapacitated people) (PAWW) is a regulation that temporarily provides employees with supplemental benefits if their statutory entitlement to WW or WGA benefits has ended. This regulation applies if you as an employer are bound by a participating Collective Labour Agreement (CLA). The regulation is laid down in the CLA PAWW.
Arrange PAWW yourself
As an employer you have to arrange the PAWW for your employees. The employees pay the contribution to the PAWW-scheme and the employer has to arrange the remittance thereof via trough the salary administration. Employees who have been unemployed for a longer period than they are entitled to WW or WGA benefits by law, can make a claim on PAWW-benefits. The benefits supplement the statutory unemployment benefits up to the amount to which the employee was entitled under the previous legislation regarding unemployment.
The contribution that the employees pay (0,2% in 2022) is deducted from their gross salary. As mentioned before, the employer is responsible for the administrative handling in relation to the collection of the contribution. In case of agency work employment contracts (to which the NBBU or ABU CLA is applicable), the contribution of 0,2% is at the expense of the Employer. The contribution is compensated by the employer trough a surcharge on the gross salary. The PAWW-scheme therefore has an impact on your cost price. The PAWW has no influence on the pension premium. The compensation also does not affect the various bases in the ABU collective agreement (such as vacation pay and reservations).
Steps to be taken
With regard to the application of the PAWW scheme, the following will have to be arranged:
- Inform you employees and your salary administration department about the deduction of the contribution.
- Register your company at the PAWW-portal.
- Collect the monthly PAWW contributions through the salary administration.
- Periodically file a declaration which states:
- the number of employees who were employed during the reporting period;
- the total amount over which the PAWW-contribution is calculated;
- the PAWW contribution to be paid for the declaration period.
- Submit corrections to filed declarations if this is necessary.
- Take care of the payment of contributions
If you have any questions or would like more information on the PAWW scheme, please contact the AAme payroll consultants.