Paid Parental Leave Act adopted
We informed you earlier about the (partially) paid parental leave bill. On 12 October of this year, the Dutch Senate approved this bill. As a result, the Act will enter into force on 2 August 2022. Below you will find an overview of the changes.
Currently, employees have a legal right to 26 weeks (half a year) unpaid parental leave per child. This parental leave can be taken until the child reaches the age of eight. Employers and employees can make alternative arrangements about this scheme, to the benefit of the employee.
Under the new legislation, an employee is entitled to (partially) paid parental leave in the form of a benefit during 9 out of 26 weeks. To be entitled to paid parental leave, the employee must take parental leave in the first year after the child’s birth. In case of foster care or adoption, this entitlement is valid for the first year after the child has been included in the family. The benefit must be applied for by the employer at the UWV.
UPDATE: height benefit
Earlier we informed you that it was not yet clear what the level of the benefit would be. Initially, the Cabinet opted for a percentage of 50% of the employee’s daily wage, with a maximum of 50% of the maximum daily wage. The maximum daily wage is currently € 225,57 per day.
However, the set maximum could lead to employees with a relatively low salary being less likely to make use of paid parental leave. This was considered an undesirable situation by Minister of Social Affairs and Employment (under resignation) Koolmees. Therefore, he proposed an adjustment of amending the payment percentage to 70%. The new cabinet subsequently had to decide whether it would accept that proposal.
On 15 December 2021, the new cabinet announced the coalition agreement in which it was announced that the benefit percentage will indeed be increased to 70%.
What does this mean for you as an employer?
As of 2 August 2022, your employees are entitled to partially paid parental leave at the rate of 70% of the daily wage, with a maximum of 70% of the maximum daily wage. For you as an employer, this benefit will not lead to additional expenses since the social funds will be charged with it. As of this date, the leave of parents around and after the birth or adoption of their child will look like this:
Do you have any questions about paid parental leave or other forms of leave? We are happy to help.