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Employers make an annual choice: to have WGA benefits administered through the UWV (public system, differentiated premium), or to become self-insurers for the first 10 years. Self-insurance provides control over reintegration and can result in lower costs. However, there is a risk: high absenteeism equals high direct costs. WGA self-insurance covers this. For SME employers, this is a decisive choice with a financial impact of up to €200,000+ per WGA case. Below is the weighing of the UWV vs. self-insurance, the costs, and how Tessa decides.
The short answer
- WGA: partial disability after 2 years of absence (35-80%).
- UWV route: standard, differentiated premium via UWV.
- Deductible: pay benefits yourself for the first 10 years.
- WGA own-risk insurance: covers the financial risk of the own-risk.
- Decision point: apply annually on January 1st for the following year.
WGA benefit for partial disability
For 35-80% disability: WGA benefit, 2 phases:
- Wage-related (max 2 years): 70% of last wage below maximum daily wage.
- Continuation: WGA wage supplement or follow-up benefit — depending on return to work.
Total duration: until state pension age. First 10 years: either UWV or employer pays.
Two routes: UWV or own risk
UWV route
Standard: UWV pays the benefit, the employer pays a differentiated premium via the Tax and Customs Administration. The premium depends on the industry average and the company's own WGA inflow.
Advantages: predictable, UWV handles administration. Disadvantage: little influence on individual cases.
Self-insurer status
The employer pays the WGA benefit themselves for the first 10 years. Benefits:
- Direct control over reintegration (in-house case management).
- Lower effective costs with stably low absenteeism.
- Better information position regarding absenteeism trends.
Disadvantages:
- High financial risk (€50,000-€200,000+ per WGA case over 10 years).
- Administrative burden.
- Mandatory WGA own-risk insurance recommended.
WGA deductible insurance
Insurance for self-insurers:
- Reimburses WGA benefit payments.
- Provides guidance on reintegration (second-track reintegration, opportunities with another employer).
- Process guidance for UWV procedures.
Premium: 0.5-2% of total payroll — comparable to the differentiated UWV premium or sometimes lower.
When is the deductible applicable?
Good candidate for deductible:
- Stable workforce with a low absenteeism history.
- Strong reintegration capacity (HR department, contracts with occupational health and safety).
- Cash flow for incidental high expenses.
- Need for control over individual cases.
Less suitable:
- Unstable workforce with high absenteeism.
- Poor occupational health and safety services.
- Limited cash flow for claims peaks.
- High average age of staff (higher WGA risk).
Tessa's consideration
Tessa has 12 employees, average age 38, low absenteeism:
- UWV route premium: 1.2% of total payroll (€ 600,000) = € 7,200/year.
- Deductible + insurance: 0.9% × € 600,000 = € 5,400/year.
- Savings: €1,800/year.
- Plus management of a potential WGA case — can accelerate reintegration.
Tessa chooses deductible with insurance — small financial saving plus operational benefits.
Transition moment
Registration with UWV before January 1st for effective next year. Required:
- Statement of guarantee (often via insurer) for solvency.
- WGA own-risk insurance taken out in parallel.
- Aligning administration with self-management.
Switch binding for at least 3 years — after that, you can return to UWV.
Honest recommendation
WGA self-insurance is often advantageous for SMEs with consistently low absenteeism — premium savings of 10-25% plus control over reintegration. Insurance is essential to cover financial risk. Calculate the benefits for your specific situation with an HR advisor or insurance specialist. For SMEs with an unstable workforce or a high average age: the UWV route is often safer.
For other topics: absenteeism insurance, WIA insurance and ZW deductible.
Frequently Asked Questions
Return to Work Partially Fit for Work — benefit for 35-80% disability after 2 years of absence. Consists of a wage-related component (max 2 years) and a follow-up benefit. The employer contributes for the first 10 years — via the UWV or directly.
UWV: standard, differentiated premium, predictable. Deductible: pay benefits yourself for 10 years, financially covered by insurance. For consistently low absenteeism: deductible often more advantageous.
UWV differentiated premium: 0.5-2% of payroll (industry-dependent). WGA self-insurance: comparable or slightly lower. Difference typically 10-25% in favor of the self-insurance with a favorable risk profile.
Registration with UWV before January 1st for effective the following year. Binding for a minimum of 3 years. Required: guarantee statement (via insurer) and parallel deductible insurance.
Employers with a stable workforce, low absenteeism, strong reintegration capacity, and sufficient cash flow to handle peak damage. Less suitable: unstable workforce, high average age, or weak occupational health and safety services.
Payment of WGA benefits during the self-risk period (max 10 years per case). Plus reintegration guidance, case management, and process support for UWV procedures.
Yes, employers often implement both simultaneously for a consistent reintegration policy. ZW for the first two years (flexible workers), WGA for thereafter. Maximum control but also maximum risk — insurance is essential.
