Recalculation

Social insurance premiums are determined on an annual basis. The share of the social insurance premiums that the employee pays, is periodically deducted from the employee's wage. To this is added the share that the employer has to pay.

At the start of the calendar year, the 'UWV' uses a number of criteria to determine what they think the employer will have to pay in social insurance premiums for that year. These amounts are then charged to the employer using advance notes. Once the year has ended, the employer has to send the 'UWV' the so-called year-end work in the form of a digital file. This should be done before 1 February of the new year. This digital file contains the main data for each employee: the total 'SV' wage and the total number of 'SV' days in the year. The 'UWV' uses this data to determine the final settlement note for the employer. The law requires that these calculations are made on an annual basis. This is why for the maximums and franchises initially annual amounts are determined that are then converted to daily amounts.

If, as in the examples above, you calculate every period without taking into account the previous periods, you can reach an annual amount that is entirely different from what is calculated by the 'UWV'. For every period you can therefore choose to take into account the cumulatives of periods that have already been calculated. This is called recalculation.

There are a number of different recalculation methods. It does not really matter which method you choose (you can even choose not to recalculate at all), as long as at the end of the year, your result equals that of the 'UWV' calculation.

This is why every salary package has been created in such a way that the cumulatives are always recalculated in the last period of the year or in the last period that someone is employed by his employer.

This is done as follows:
Suppose that someone is paid by the month and works the entire year. After the November 2003 calculation, this employee has accrued a certain amount of 'SV' wage from January to November, and also a cumulative number of 'SV' days through November. The total 'SV' wage from January through December is then calculated in the December calculation. The premiums are calculated over this result (taking into account the total number of 'SV' days, maximums and any franchises). This is then the annual premium. Deducted from this is the premium already calculated for January to November. The remainder is the December premium.

Note:

If both normal and special rate premiums are calculated, rounding is done as follows.
The premium for the normal rate is calculated and rounded to two decimal places. The same is done for the special rate premium. Then both normal and special rate premiums are added up to get the total premium.