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Factsheet for measure NL-2020-12/763 Updated – measures in Netherlands

Subsidy for entrepreneurs in affected sectors

Tegemoetkoming Ondernemers Getroffen Sectoren (TOGS)

Country Netherlands , applies nationwide
Time period Temporary, 17 March 2020 – 26 June 2020
Context COVID-19
Type Legislations or other statutory regulations
Category Supporting businesses to stay afloat
– Direct subsidies (full or partial) or damage compensation
Author Amber van der Graaf (Panteia)
Measure added 21 April 2020 (updated 15 June 2022)

Background information

This measure was introduced by the government, specifically, via the Ministry of Economics and Climate. This is part of the package of national measures taken to mitigate effects of COVID-19.

It should be noted that as of April 2020, Parliament and First Chamber have agreed to the package of bills, though in this situation the cabinet did not need to formally wait for agreement in order to enact the measures.

It has been introduced as bunch of emergency solutions specifically to combat or cushion the effects of the COVID-19 crisis. The measure is for 3 months, but there is budget available to extend it for other 3 months. More specifically this measure is aimed at providing the enterprise with budget to pay their costs. The ultimate aim is to keep the economy functioning (including the financial flow) till the pandemic is under control.

Content of measure

The subsidy for enterprises in affected sectors, or Tegemoetkoming Ondernemers Getroffen Sectoren (TOGS) is a government allowance for enterprises that are directly negatively affected by the government’s COVID-19 measures. These enterprises are eligible to receive a one-time government subsidy of €4,000, and in general consist of businesses that are directly, negatively affected by the government’s measures. This includes enterprises that were forced to close doors or could not operate fully because of the government’s COVID-19 measures.

The main selection criteria is SBI codes, the Dutch equivalent of NACE codes. Currently this includes more sectors and sub-sectors than can be noted down here. The sectors included is adapted regularly, by the Ministry since also enterprises that were not obliged to close doors were hit hard such as small fashion shop, so these enterprises were included at a later stage and the ministry announced that the list is not complete yet (13 April 2020). Indeed, this list seems to be evolving and expanding as the crisis continues and future prognoses start to be developed.

Updates

The following updates to this measure have been made after it came into effect.

26 June 2020

This measure is not in effect anymore as of 26 June 2020.

Use of measure

Central Statistics Office data indicates that up to 31 May 2021, the TOGS has been used by 215,880 companies. A total amount of €864 million has been allocated (CBS, 2021).

RVO has granted a TOGS application to almost 216,000 companies (as at 30 September 2020). This mainly concerns small businesses. About half of these are companies with one workplace. For 93% these were companies with fewer than ten workplaces. Hospitality entrepreneurs in particular have made use of this scheme (Bedrijvenbeleid in beeld, 2021).

The RVO also uses NACE codes for this measure. Tens of thousands of entrepreneurs reported that their NACE code was missing. The government used these signals for the expansions and the rectification. On May 13, the list of established NACE codes was expanded again. As a result, companies could still apply for the TOGS after the 2nd expansion on 13 May with the code of their ancillary activity (RVO, 2020).

Target groups

Workers Businesses Citizens
Does not apply to workers Sector specific set of companies
Does not apply to citizens

Actors and funding

Actors Funding
National government
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Consulted Consulted
Form Direct consultation outside a formal body Direct consultation outside a formal body

Social partners' role in the implementation, monitoring and assessment phase:

  • Social partners jointly
  • Main level of involvement: Peak or cross-sectoral level

Involvement

Since the outbreak of the COVID-19 crisis, the government has had regular and close consultation with the social partners. Together the national level social partners and the government arrived at the first and second packages of emergency measures, announced 17 March and 20 May respectively.

Views and reactions

Though not discussed in great detail, the social partners (national level trade unions and employer organisations), have come together to discuss with the government how best to tackle the effects of COVID-19 on workers and employers so as to keep the Dutch economy going. In the Netherlands relevant, national sectoral social partners are often involved in national policy making in a consultative capacity so that partners may reflect on regulatory plans and their intended impacts. This happens in a direct consultation fashion or through tripartite meetings (facilitated by the National Labour Foundation). The social partners were consulted for the whole package of measures introduced by the Dutch cabinet on 17 March 2020.

Sectors and occupations

    • Economic area Sector (NACE level 2)
      A - Agriculture, Forestry And Fishing A1 Crop and animal production, hunting and related service activities
      A3 Fishing and aquaculture
      G - Wholesale And Retail Trade; Repair Of Motor Vehicles And Motorcycles G45 Wholesale and retail trade and repair of motor vehicles and motorcycles
      G46 Wholesale trade, except of motor vehicles and motorcycles
      G47 Retail trade, except of motor vehicles and motorcycles
      H - Transportation And Storage H49 Land transport and transport via pipelines
      H50 Water transport
      H51 Air transport
      H52 Warehousing and support activities for transportation
      H53 Postal and courier activities
      I - Accommodation And Food Service Activities I55 Accommodation
      I56 Food and beverage service activities
      J - Information And Communication J59 Motion picture, video and television programme production, sound recording and music publishing activities
      J60 Programming and broadcasting activities
      J61 Telecommunications
      J62 Computer programming, consultancy and related activities
      J63 Information service activities
      M - Professional, Scientific And Technical Activities M74 Other professional, scientific and technical activities
      N - Administrative And Support Service Activities N77 Rental and leasing activities
      N78 Employment activities

This case is not occupation-specific.

Sources

Citation

Eurofound (2020), Subsidy for entrepreneurs in affected sectors, measure NL-2020-12/763 (measures in Netherlands), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/NL-2020-12_763.html

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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.