Developments at the UWV - WHK premiums 2025
As the UWV already announced in the Juninota the new calculation factors for the calculation of the public differentiated disability premiums (Whk premiums) appeared earlier than previous years. July 15, these were published in the Government Newspaper.
The average premium percentage for the WGA in 2025 increases from 0.77% to 0.83% compared to 2024 and the average premium percentage for the Sickness Benefits Act increases from 0.45% in 2024 to 0.50% in 2025. The maximum premiums also increase to 3.32% (2024: 3.08%) for the WGA and 2% (1.8%) for the Sickness Benefits Act.
The increase in the WGA premium is caused by a temporary increase in the WGA inflow at the end of 2023/early 2024. This increase is higher than was assumed in the premium determination for 2024 (in July 2023). The increase in the Sickness Benefits Act premium is mainly caused by an increase in the expected burdens for the Sickness Benefits Act.
In addition, the Sickness Benefits Act premium higher than burdens has been determined to gradually reduce the capital deficit under the Sickness Benefits Act.
Employers who are publicly insured will receive a new decision about 1 December Whk premiums with the new premiums that are likely to be higher.
In particular, the increase in the WIA inflow and the associated increase in the premiums is of concern. On the one hand, the number of new beneficiaries increases. On the other hand, the average benefit duration increases. The result of a large shortage of insurance doctors at the UWV. As a result, the process around (re)assessments and reintegration is blocked. Add to this the relatively high WIA indexations and the benefit costs will continue to increase in the coming years
In any case, the UWV expects a further increase in the number of WIA benefits and the associated benefit burden up to and including 2025.
Developments disability benefits
The costs of our social security system are paid jointly by us through payroll taxes and social insurance premiums. Employers contribute an important part. On the one hand, due to the mandatory continued wage payment during the first 2 years of illness based on the WULBZ and the VLZ.
On the other hand, large employers are subject to a proportionate tax benefit that arises after employment with the employer in question. This concerns the benefits that are paid to partially disabled persons and completely non-durable disabled persons based on the Work Resumption Scheme Partially Workable Persons (WGA). This method called premium differentiation is based on the principle that a surcharge or a discount is calculated with the average premium. The surcharge or discount is determined entirely at large companies (wage amount > € 3,960,000) based on the own inflow. Mid-sized companies (25-100 employees) have a weighted average between the industry and the company’s individual risk. A sectoral premium applies to small companies (wage amount < € 990,000), so the amount of the surcharge or discount is determined by the WGA inflow in the sector.
The increasing trend of the average premium percentage is also visible in the development of the sectoral percentages. The sectoral premium for the Sickness Benefits Act increases in 64 of the 67 sectors
A similar principle applies to employees who leave employment ill and are entitled to a benefit under the Sickness Benefits Act
The allocation of these WGA benefits is capped at 10 years. Together with the obligation to continue to pay wages during the first 2 years, the employer is financially responsible for the disabled employee for a period of 12 years. Employers are therefore financially encouraged to limit inflows into the WGA, or to shorten the benefit period.
A continuing assessment process is a major cause of the increase in benefit costs. In the meantime, the Ministry of Social Affairs and Employment (SZW) has taken a number of measures to eliminate the backlogs at the UWV, so that the largest bottlenecks in the process are resolved.
On 1 October 2022, the simplified WIA assessment for the over-60s started. This WIA assessment does not involve an insurance doctor. People are only assessed by a labor expert. They then receive a full disability benefit (WGA 80-100) as standard, unless they are still working and therefore have less than 35% loss of income. Then they are declared less than 35% disabled and there is no right to a WIA benefit. If the labour expert sees an indication for complete and sustainable disability, the labour expert must still contact the insurance doctor. This measure is temporary and may be abolished on 1 January 2025.
The temporary measure WIA assessments (Practical Assessment) means that only on the basis of what people actually deserve an assessment is made of the degree of their disability.
The degree of disability determines whether a person is entitled to a benefit and, if so, how high it must be. According to the current rules, both a practical and theoretical assessment (an estimate of what the employee can theoretically still earn) is carried out for employees who still have income from work. Subsequently, based on the assessment with the lowest degree of disability, it is determined whether or not a WIA benefit is granted. The Practical Assessment measure omits the theoretical estimate when a practical assessment is possible. This approach will lead to fewer advances. The measure entered into force on 1 July 2024 and runs for three years.
In the event of the concurrence of both schemes, the employer and employee are given the choice whether the assessment must be carried out in accordance with the 60+ scheme.
The measures ensure that more WIA claim assessments are carried out, reducing the number of advances, which has an inflow-reduction effect. The simplified claim assessment results in relatively more awarded applications. This has an inflow-increasing effect of 2,200 additional grants per year for 2023 and 2024. The estimate is that the Practical Assessment measure has an inflow-increasing effect of 500 additional grants.
The WGA benefits granted in the a forementioned period are charged to the General Occupational Disability Fund (Aof). Therefore, there will be fewer WGA payments for the account of the Resumption of Work (Whk) or the own risk bearer. Logically, the Aof premium would then increase and the Whk premium would decrease. Unfortunately, this effect was only temporary, because the Aof premium is expected to increase further in 2025, after an increase of 7.11% (2023) to 7.49% (2024) for (medium) large employers. After publication of the calculation factors for 2025, we can conclude that the differentiated Whk premiums will also increase.
The employers (together with the employees in the case of employee contribution to the WGA premium) pay the account of the (capacity) problems at the UWV. WGA own risk bearers, have to be extra careful, because insurers base their premiums on the risk profile of the organisation and thereby assume the actual inflow. Insurers cannot take a temporary measure into account. The smoother assessment by the UWV could even lead to a heavier employer risk profile, because the inflow is higher. In this way, an employer would pay the bill twice. It is therefore important to assess renewal proposals very critically. WTW has now brought this issue to the attention of the insurers and will closely monitor developments. Employers who are publicly insured are well advised to assess the Whk decision very critically. Although the benefit costs as a result of the temporary measures are charged to the Court of Appeal, we do not exclude that these will also be charged to the employer.
An income insurer published a trend report this spring in which an advance was already taken on the rising WIA inflow. The good news is that the results under WGA own risk bearers are better than with publicly insured employers. This is important because it can be concluded that employers can indeed get a grip on the WGA damage burden by means of the WGA own risk bearership.
Of course, preventing sick leave and therefore WIA inflow is best. A good employability policy contributes to this. Of course, the employer also has an influence on this. So the good news is that employers can have an impact on costs, provided that the right tools are used for this.
An increase in the WIA inflow probably means that the number of benefits on WIA Supplementary Insurance will also increase. To date, the premium increases have been disappointing. Insurers will review the major contracts for merit and make a change accordingly. Based on the premium/damage figures, an estimate will be made of the expected future damage burden. If the contract is renewed, attention must be paid because the premium may only be increased. WTW can provide support in assessing the renewal proposal and make an initial benchmark comparison. Based on this benchmark, it can be assessed whether it makes sense to conduct a comprehensive market research.
Due to the many bottlenecks in our social security system, a number of which are mentioned in this H&B Update, former Minister Van Gennip has ordered to conduct research into possible solutions. This study, carried out by the Octas Foundation, has resulted in a report 'Future of our disability system’.
The Research Committee lists a number of bottlenecks for the insufficient functioning of the system that have been known for some time, such as:
The Committee also mentions a number of solutions for improving the system. Three variants of the current system are mentioned:
The three variants were assessed by a panel of experts on the advantages and disadvantages compared to the current system. The findings of this expert panel can be read in the report 'Octas practical test’.
WTW has prepared a comprehensive summary of the Octas report. And also described a number of solutions that help employers deal with all the uncertainties that are currently there. If you would like to receive this, please contact us.
Because, unlike previous years, the UWV has announced the calculation factors for the Resumption of Work cash premium one and a half months earlier, employers have extra time to properly orient themselves. WTW is happy to help with this. If your organisation is still publicly insured for the WGA and/or the Sickness Benefits Act, we can make a first scan that shows whether it is sensible to remain publicly insured or to conduct a follow-up investigation into any own risk carrier. Of course, the calculation factors 2025 will be immediately involved, so that you know what the impact is for your organisation. Our offer also applies to all situations in which your organisation already bears its own risk for the WGA and/or the Sickness Benefits Act.
Please contact your contact person at WTW or email:BenefitsNL@wtwco.com
