The Dutch government has outlined plans to introduce a minimum rate of €16 an hour for those who are self-employed.

The new plans would take effect from 2021 and are aimed at preventing self-employed people working for such a low amount that they cannot afford to ‘make ends meet’. The rate will apply to all freelancers. There are no other criteria imposed such as the duration of an assignment.

The minimum rate will apply to all hours that a self-employed person spends on an assignment. The plan said that the rate takes into account that self-employed people on average have to spend one third of their time on other activities, such as administration and other tasks. The rate does not include these other costs.

“Those who work full-time must be able to live on that income. But that does not currently apply to a part of the self-employed: 8.6% of self-employed households had an income below the subsistence level in 2017 compared to 1.6% of employees,” the Ministry of Social Affairs and Employment stated. “The government wants to prevent such a group of working poor from being created. Low rates also make it impossible for freelancers to save for unemployment and to insure themselves for sickness and disability.”

“With a minimum rate, the ministers involved also expect to achieve sufficient protection for self-employed persons with a weak position on the labour market,” the Ministry stated.

The plan also states that employers should offer permanent contracts to staff who are paid below the minimum rate, but the Ministry added that this may conflict with EU regulations.

For self-employed persons with a rate above €75, the government assumes that they can save for unemployment and pension and that they can insure themselves. The government added that it also wants to give them more room to do business and will soon be able to opt for a self-employed persons declaration, which allows them to agree in advance with their client that they will work independently as entrepreneurs. To be able to use the self-employed person's declaration, an assignment may not last longer than one year.  Registration with the Chamber of Commerce is also required. 

The Ministry said that Social Affairs Ministry inspectors will ensure that freelancers are paid the minimum tariff.

According to DutchNews.nl, those who earn less than €75 an hour will be subject to a new system of checks. When the new system is implemented, employers will have to answer questions online which will act as a check on whether the freelancer and the task they are being asked to do classify as self-employment. This will guarantee employers do not have to pay premiums and taxes on behalf of the freelancer.