Social security contributions paid by employers have been rising for years and now appear to have been structurally higher than necessary. A Telegraaf article quotes experts including Peter Kavelaars, Professor of Economics of Taxation at Erasmus School of Economics.
In the Netherlands, employers collectively bear the cost of social benefits. However, they appear to have been paying more contributions than necessary for years, resulting in a surplus of 34 billion euros now. A spokesman for the UWV argues that social insurance contributions have not had to cover costs for years and that the state has switched to ‘integral middle management’. Kavelaars, doubts this: ‘It seems like a policy decision to me. I would say that the regulations should have been adjusted, explaining why it is necessary there is more money than necessary coming into such a fund, and in my opinion this has not happened. Of course, you should always build up a little reserve, but not to the extent that is happening now.’ The Ministry of Social Affairs and Employment argues that reserves in the fund may be used to fill other gaps.
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