Shortly, the outgoing cabinet will present a legislative bill to repeal the job-related investment discount BIK with retroactive effect from January 1, 2021. The cabinet wants to use the earmarked BIK budget to reduce the premium for the General Unemployment Fund (Awf) in 2021.
The government wanted to be assured by the European Commission that the BIK scheme would be considered to be permissible state-aid. But now informal consultations showed that the European Commission is not sure whether it is permissible state-aid, or not. The Commission is now less likely to judge positively on the BIK and a final European Court decision will be years ahead.
An undesirable situation, according to the government. That is why it will soon propose a bill to repeal the BIK with retroactive effect from January 1, 2021. Agreement of the House of Representatives and the Senate is required. What exactly the consequences will be for employers who have already claimed under the BIK does not emerge from the government letter. The government proposes to reduce the Awf for employers as early as in 2021. Later, it will become clear how exactly this will affect the low and high WW premiums.