If an employee does not pay health care premiums, this can have far-reaching consequences for you as an employer. Obviously something that should be avoided as much as possible. As such, this blog will discuss the regulations and outline what to look out for.
How it works.
If someone does not pay a health care premium for six months, he or she is registered as a defaulter with the Dutch Care Institute. From that moment on, the so-called defaulter must pay an administrative premium to the Dutch Health Care Institute. This administrative premium is higher than the health care premium and replaces the health care premium to the health insurance company.
How is the administrative premium collected?
If the defaulter has an employer, a decision will be sent to the employer. This states that the employer must deduct the administrative premium from the employee’s salary each month and pay it to the Dutch Health Care Institute that same month. The Zorginstituut Nederland indicates from which month you must withhold and pay the premium. If this is, for example, as of January 1, 2016, the first premium must still be withheld from wages in January 2016 and remitted to the Dutch Healthcare Institute. The same applies to the subsequent months. Each month it must be withheld and remitted. In this way, the employer is made responsible for the payment of the administrative premium.
What are the consequences if the premium is not paid (on time)?
Each month the premium must be paid to the Dutch Care Institute. If the employer does not do this or does not do it in time, the premium will remain payable to the Dutch Care Institute and it has the option of issuing a writ of execution. Such a writ of execution states, for example, that the arrears must still be paid within two days. If this does not happen, then, for example, seizure may be resorted to. Seizure of, for example, bank accounts or goods can have a major impact on business operations.
What are the consequences if the premium is not withheld (on time)?
If the premium is not withheld on time, i.e. in the month to which the premium relates, the employer may not withhold the premium from the employee’s wages. So too late is too late! This therefore means that the premium must be paid, but it can no longer be deducted from the employee’s salary. As a result, the administrative premium will be borne entirely by the employer. This can sometimes run into the thousands of dollars. So make sure you withhold the premium on time.
Finally – TIP!
If you are required by the Dutch Healthcare Institute to withhold and remit monthly administrative premium from your employee’s pay, do so. Prevent the administrative premium from having to be paid by you, the employer, but no longer being recoverable from the employee.
Posted by Leonie Keet
Leonie Keet is a lawyer
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