SZV ZV/OV-wage limit increase to ANG 120,000
Written by Matthew Verhage
Posted on 28 Jun 2022 - 2 minutes read
This year, St. Maarten Parliament approved the increase of the ZV/OV-wage limit and once it will be published, it will go into effect the first of the following month.
When writing this blog on June 28, 2022, this change in law is still not published so it is not effective yet.
This means that once the law is published, employees that currently earn SZV wages between ANG 67,816.32 and ANG 120,000 (per year) and that currently probably have a private sickness insurance, will then be entitled to sickness insurance from SZV, also known as ZV (Ziektekostenverzekering).
To accomplish a smooth transition for employees (back) to SZV sickness insurance, employers are reminded by the SZV to their obligation to register all their employees at SZV in their SZV Employer Portal Account.
As of July 1, 2022, also employees have a changed procedure and obligation to update their registration at SZV in their MySZV Account. You can read more about these obligations in the SZV document attached.
What will change in your payroll administration?
Employees that now earn more than the current SZV wage limit of ANG 67,816.32 per year (ANG 5,651.36 per month) do have a private sickness insurance and do not pay SZV ZV-premium. Once this change in law is published, from the first of next month:
- The private sickness insurance can be stopped;
- Possible employer contributions for private sickness insurances must be stopped and
- These employees must now pay SZV ZV-premium so ZV-premium must be activated in the payroll.
The SZV ZV-premium is 12.5% of the employee’s SZV-wage, which consists of an employer contribution of 8.3% plus an employee contribution of 4.2%. However, the total ZV-premium of 12.5% can be paid fully by the employer.
And finally, this increase in wage limit will also have effect on the OV-premium, which is the premium for insurance in case of industrial accidents. This premium will also increase by increasing the wage limit.
Interesting attachment to the article
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