nu

Minister questions two years of continued wage payment during illness

Minister questions two years of continued wage payment during illness

Dutch Minister Aartsen is considering limiting mandatory wage payments during sickness to six months to incentivize faster returns to the labor market and reduce costs for employers. While the proposal aims to save 1.4 billion euros annually and boost economic growth, it has drawn strong criticism from labor unions who fear the impact on social security.

Current Dutch law mandates that employers must pay at least 70 percent of a sick employee's wages for up to 104 weeks, though collective labor agreements often ensure full pay during the first year. Minister Aartsen argues that this system diminishes the financial incentive for employees to return to work quickly. The ministry suggests that limiting mandatory wage supplements to six months could save employers approximately 1.4 billion euros annually while potentially boosting economic growth through increased labor supply. Research indicates this change would likely not increase the number of disabled workers or require additional government spending.

However, government interference in collective labor agreements remains controversial and may conflict with international treaties. While the minister believes public interest justifies potential intervention, the plans have faced significant backlash. Labor unions, including the CNV, have labeled the proposal as highly harmful. This initiative coincides with broader government efforts to cut 6.8 billion euros from social security, including changes to the WIA disability insurance scheme that have caused widespread concern among workers' representatives.

Based on reporting by nu. Translated and condensed by LocalHeadlines.

Related articles

Less demand, no lower prices: new housing market struggles due to high interest rates and small homes

Less demand, no lower prices: new housing market struggles due to high interest rates and small homes

High mortgage interest rates are reducing demand for new-build homes in the Netherlands, as developers maintain high, rigid prices despite falling interest from buyers. Additionally, government mandates for affordable housing are resulting in smaller properties that increasingly fail to align with consumer preferences, further threatening future project completions.

Years of illegal use of Schiphol: environmental groups and local residents take legal action over cabinet plans

Years of illegal use of Schiphol: environmental groups and local residents take legal action over cabinet plans

A coalition of environmental groups and residents has challenged new government regulations for Schiphol Airport at the Council of State. The plaintiffs claim the rules legitimize years of illegal operations and are seeking a mandatory reduction in flight numbers.

European Commission launches investigation into Booking.com over failure to tackle fraud

European Commission launches investigation into Booking.com over failure to tackle fraud

The European Commission has opened an investigation into Booking.com over concerns that the travel platform is failing to adequately combat fraud and phishing scams. The inquiry aims to ensure the company complies with the Digital Services Act, which mandates that online platforms prioritize user protection and transparency.

Trade with Russia remains lucrative, but companies face risks

Trade with Russia remains lucrative, but companies face risks

Despite 21 rounds of European Union sanctions against Russia, some businesses continue to profit by using third-party countries to bypass export restrictions. Experts warn that while such trade is lucrative, it carries significant legal risks, including criminal prosecution and prison time for those who intentionally circumvent these measures.

Private landlords are renting out fewer properties in the city: "A problem for students"

Private landlords are renting out fewer properties in the city: "A problem for students"

Private rental properties in Amsterdam have decreased by 18 percent in three years as landlords sell their units due to new rent control laws and increased taxation. While this shift favors buyers, it creates a significant housing crisis for students and individuals who cannot afford to purchase property in the city.