Don’t waste your money – apply the right social premiums

Celery Support is consulted by customers on a daily bases, and at the customer’s request, we are sometimes asked to look online in the payroll administration in Celery.

When we are logged in we regularly encounter situations in which social security premiums are paid for certain employees that should not be paid. And that is of course a real waste of money.

Do you possibly also pay some social premiums that may not be applicable? Below you will find a list per country and the most common mistakes:

Aruba
The SVb’s ZV premium (for AO compensation) only applies to employees with an SVb annual wage equal to or less than AWG 70,200 per year (AWG 5,850 per month).

The SVb’s OV premium applies to all employees, but the premium is calculated at a maximum over the above-mentioned wage limits.

And with effect from 1 January 2022, due to the lack of a relationship of authority, the DGA (the statutory director) cannot be regarded as an employee within the meaning of the National Ordinances on Medical and Accident Insurance and the Cessantia Ordinance. In such cases, the ZV, OV and Cessantia premium are not due.

In 2022, the AOV/AWW premium is no longer due in the month after the month in which an employee has reached the age of 64. But you don’t have to take any action in Celery for this – Celery automatically stops at the right time based on the date of birth with application of this premium.

BES
The Medical Insurance is not payable for a director of an entity established on the BES islands.

A director of an entity established on the BES islands is not insured for the Employee Insurances (ZV, OV and Cessantia), and therefore this premium is also not applicable.

Curaçao
The ZV premium (for AO compensation) from SVB only applies to employees with an SVB annual wage equal to or less than ANG 73,647.60 per year (ANG 6,137.30 per month). In addition to this wage limit, only employees with a 5- or 6-day working week can be insured under the ZV.

The OV premium of the SVB applies to all employees, but the premium is calculated at the maximum over the above-mentioned wage limits.

And with effect from 1 September 2019, the legal relationship between a director and the legal entity will not be regarded as an employment contract. As such, the director also does not fall under the definition of employee within the meaning of the National Ordinances on Medical and Accident Insurance and the Cessantia Ordinance. In such cases, the ZV, OV, and Cessantia premium are not due.

The BVZ premium is only due for BVZ-insured employees. Employees who are not BVZ-insured must annually apply for a BVZ dispensation from the SVB. Keep in mind that BVZ premium is only due if the employee earns ANG 12,000 per year (ANG 1,000 per month) or more. This is called the BVZ exemption. And the BVZ-Gliding Scale also applies to wages between ANG 12,000 and ANG 18,000 per year – this concerns a discount on the employee portion of this premium. But don’t worry, this BVZ exemption and Gliding Scale are automatically applied in Celery.

The AOV/AWW premium is no longer due in the month after the month in which an employee has reached the age of 65. But you don’t have to take any action in Celery for this – Celery automatically stops at the right time based on the date of birth with the application of this premium.

Finally, the AOV/AWW premium in Curaçao also has a kind of bonus/malus system. This means that employees with an annual wage of ANG 27,633 or less receive a discount on the employee’s part in this premium and employees with an annual wage of ANG 100,000 or more pay an additional 1% employee premium on the wages above this limit. But don’t worry about this either, this discount and additional premium are automatically calculated and applied correctly in Celery.

Suriname
Social legislation in Suriname is very austere. In the payroll administration and pay slips, only the AOV premium is applied, which in principle concerns a full employee premium.

An AOV premium exemption may apply to foreign employees, but a tax ruling will have to be requested for this.

St. Martin
The SZV premium (for AO compensation and Medical Insurance) from SZV will apply from 1 August 2022 to employees with an SZV annual wage equal to or less than ANG 120,000.00 per year (ANG 10,000.00 per month). In addition to this wage limit, only employees with a 5- or 6-day working week can be insured under the ZV.

The OV premium of the SZV applies to all employees, but the premium is calculated at the maximum over the above-mentioned wage limits.

SZV has no legislation that excludes directors of legal entities from ZV and OV insurance. This is partly due to the fact that the ZV premium does not only cover insurance for loss of wages in case of AO, but also for medical insurance.

The AOV/AWW premium is no longer due in the month after the month in which an employee has reached the age of 65. But you don’t have to take any action in Celery for this – Celery automatically stops at the right time based on the date of birth with the application of this premium.