Tighter regulations regarding top salaries for externally-hired senior officials

02/11 2015

The maximum remuneration standard 2016 has been adopted and tighter regulations regarding top salaries for externally-hired senior officials.


There are rules in preparation which will, among other things, tighten the standard for remuneration in respect of externally-hired senior officials in the (semi)public sector.  The proposed scheme provides that the remuneration for senior officials without an employment contract are standardized as from day one and fall under the applicable remuneration maximum of the Senior Officials in the Public and Semi-Public Sector (Standards for Remuneration) Act (hereinafter referred to as WNT) after one year. Furthermore the statutory remuneration maximum for 2016 was determined at € 179,000.

Draft decision for the amendment of the Implementation Decree WNT

Presently, the applicable WNT 1 standard for externally-hired senior officials dates from before 1 January 2015 (130% minister’s salary, https://www.lenaadvocaten.nl/en/actueel/verkenning-wnt-3-en-meer-nieuws/ ), if they are active for a period longer than 6 months within a period of 18 months.  There is no standard yet for senior officials who are externally hired for a period under 6 months.

The new, proposed standard consists of two standards for each period of 6 months and amounts to:

–          the first 6 months of the job performance:  € 144,000 (average monthly income:  € 24,000)

–          the subsequent 6 months of the job performance:  €108,000 (average monthly income: €18,000).

In total the remuneration for externally-hired senior officials may therefore amount to € 252,000 in the first 12 months of the job performance, which is all-in (that is to say excluding VAT and including non-billable hours as a consequence of keeping the administrative accounts, acquisition, absenteeism and leave).  The proposed sliding scale in the first 12 months of the hiring is intended to enable institutions to compensate for an urgent replacement demand or the need for specialist know-how for the short term and for short engagements.  This can concern the hiring through a management for instance a consultancy firm or an employment agency, forms of secondment and temporary placement, or the hiring of a self-employed worker without employees.

In addition to the 2 maximum standards for each 6 months, there is an applicable maximum hourly rate of €175 in order to prevent excessive remunerations in the event of part-time job performance.  In the event of a job performance of a period longer than 12 months, the regular, new (reduced) WNT standard (or as the case may be sector standard) will apply.

The envisaged date for the commencement of the decision and the new standard for externally-hired senior officials included therein is 1 January 2016. Existing remuneration arrangements that apply until 1 July 2016 will be respected.  As from 1 July 2016 the new standard must be complied with.  For externally-hired senior officials who are active for a period longer than 6 months but maximally 12 months, the statutory remuneration maximum dating from before 1 January 2015 will apply until 1 January 2016 (or as the case may be the applicable sector standard). For externally-hired senior officials who are active for a period longer than 12 months, the statutory remuneration maximum dating from before 1 January 2015 will apply until 1 January 2016 (or as the case may be the applicable sector standard). As from the 13th month, the lower statutory (or sector) remuneration maximum applies which will apply as from 1 January 2015.

The Draft Decision now rests with the Council of State for advice.  L&A will of course keep you informed of any further developments.

 

 

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Neem dan gerust en vrijblijvend contact op met Private: Hanneke Klinckhamers op telefoonnummer +31 (0)6 21 82 33 35 of per e-mail via: Hanneke.Klinckhamers@LenAadvocaten.nl