Mandatory disability insurance for the self-employed moves closer

Effective date still uncertain 

It is not yet known when the legislation will enter into force. This depends in part on whether the proposal can be effectively implemented by insurers, the UWV, and the Dutch Tax Administration. Current expectations are that implementation will not take place before 1 January 2030.

A basic scheme as a starting point 

The proposal introduces a public disability insurance scheme for self-employed individuals who generate profits from a business and have not yet reached the state pension age (AOW). Director-major shareholders (DGAs) and individuals earning income from other activities are excluded from the scheme. 

The proposed insurance has the character of a basic provision: 

• a premium of approximately 5.4% of business profits;
• a waiting period of 104 weeks;
• a benefit capped at the statutory minimum wage. 

This means it is not a full income replacement scheme, but rather a safety net aimed at providing minimum protection in cases of long-term incapacity for work. 

Choice between public and private insurance 

The proposal introduces a dual system. Self-employed persons are insured under the public scheme by default but may opt out under certain conditions and choose private insurance instead. 

The following conditions apply, among others: 

• the private insurance must provide coverage at least equivalent to the public scheme;
• the premium must be comparable;
• an exemption must be requested from the UWV;
• an addition, the private policy must commence, in principle, at the start of a calendar year or upon commencement of the business. 

Furthermore, insurers will be required to pay a stability contribution to the UWV for self-employed individuals who opt for private insurance.

What about existing insurance policies?

For self-employed individuals who already have disability insurance, transitional arrangements will apply. However, these are limited. Only policies that provide long-term coverage and meet specific conditions will qualify. 

Even in these cases, an application must be submitted to the UWV, and insurers will be required to pay a stability contribution.

What does this mean in practice? 

Although the proposal has not yet been adopted, it provides a clear indication of the direction of travel: a mandatory basic disability insurance scheme for the self-employed is moving closer.

For organisations working with self-employed professionals, as well as for the self-employed themselves, this may have implications for costs, contractual arrangements, and the choice between public and private insurance.

It is therefore advisable to closely monitor these developments and assess the potential impact in a timely manner.