Update: Mandatory occupational disability insurance (AOV) for self-employed professionals is getting closer

Well, a lot has happened since our last blog. After years of discussions and negotiations between employers, employees, and governmental institutions, there is finally a draft law on the table for mandatory occupational disability insurance for self-employed professionals. The new Minister of Social Affairs and Employment of the cabinet Schoof now has to decide whether this draft will go to the House of Representatives. Exciting!

What does the proposal look like?
Here are the main points summarized:

• Insured amount: If you become disabled, you will receive a benefit equal to the minimum wage. Not exactly generous, but it does provide a safety net. Employees often qualify for a higher benefit.
• Right to benefits: The insurance will kick in after one year. This is earlier than for employees, who often have a longer waiting period.
• Premium: The premium is about 6.5% of your profit, with a maximum of 195 euros per month. And the good news? This premium is tax-deductible!
• Collective insurance: The insurance will be collectively arranged through the UWV (Employee Insurance Agency). If you want more coverage, you can always opt for additional insurance with a provider of your choice.

What’s next?
The plan is for the draft law to be passed by both the House of Representatives and the Senate in the spring of next year. If everything goes according to schedule, it will take another 2 to 3 years for the law to actually come into effect, so think 2027 or 2028. During this time, the UWV, insurers, trade unions, and other agencies involved will need to get everything organized to ensure a smooth implementation. Want to revisit what we previously wrote about disability insurance for entrepreneurs? Check out our blog “Mandatory occupational disability insurance (AOV) for self-employed professionals” via this link.

Stay tuned, as this law could significantly change your costs as a self-employed professional!