PAWW benefit


Additional unemployment benefit for residents of Germany who become unemployed in the Netherlands

A worker who lives in Germany and becomes unemployed in the Netherlands must apply for unemployment benefit in Germany. The duration of unemployment benefit is limited. In most cases, it is 1 year if at least 24 months have been worked. For older unemployed persons (58 years or older) the duration of benefit can be a maximum of 24 months.

A Dutch unemployment benefit depends on the years worked and is paid for a minimum of 3 months and a maximum of 24 months.

Old and new unemployment law in the Netherlands

In the past, the maximum benefit duration in the Netherlands was 36 months. Employers and employees have the possibility to counteract the reduction of the benefit period by means of a collective agreement. In many collective agreements, the difference in benefit duration between the old and the new legislation has now been eliminated. This means that a calculation is made according to the old and the new legislation. If it turns out that the entitlement to social benefits under the old law would last longer, then the unemployed person can receive a PAWW benefit instead during the missing months of benefits.

PAWW Foundation

Employers’ and workers’ organisations have established the PAWW Foundation. PAWW stands for: Private Aanvulling WW en loongerelateerde WGA. WW is the unemployment benefit and WGA is the reduced earning capacity pension. This foundation is responsible for collecting contributions and paying benefits during the third year of unemployment.

Benefits are also paid in Germany

This repair of the duration of benefits applies not only to residents of the Netherlands who receive Dutch unemployment benefits, but also to residents of Germany who receive German unemployment benefits.

When assessing whether a resident of Germany is entitled to the supplementary unemployment benefit from the Netherlands, the duration of the benefit is calculated on the basis of the Dutch rules. Example: If you are entitled to an unemployment benefit in Germany for 12 months and this would be 18 months in the Netherlands, then the supplementary unemployment benefit from the Netherlands will only be paid after 18 months of unemployment.

This arrangement is particularly interesting for older unemployed people. They are entitled to unemployment benefits for up to 2 years in both the Netherlands and Germany. After that, unemployed persons in both the Netherlands and Germany are entitled to social benefits for an additional year.

Partially unable to work

This scheme does not only apply to the unemployed, but also to people who have become incapacitated for work while working in the Netherlands. This benefit may decrease over time, depending on the years of employment. Here, too, there are increases in the duration of the benefit.

Prerequisites

However, some conditions must be met:

  • There must be a collective agreement regulating WW repair.
  • The unemployed person must have worked for at least 10 years;
  • The benefit must be applied for from the PAWW 1 month before the legal benefit expires;
  • They must still be unemployed and available to work on the labour market. There is an obligation to apply;
  • In Germany, you are only entitled to this benefit after the legal German and Dutch benefit period has expired.
  • This benefit does not entitle you to Dutch health insurance; it is a private benefit.

For more information, contact the PAWW Foundation: www.spaww.nl/deutsch.