As of 25 May, staffing companies in the Netherlands may no longer pay social security premiums (for example for unemployment benefits) equal to the percentage applicable to hiring employers in the sector to which they supply staff.

Prior to this date, staffing companies could apply to be allocated to a specific sector, rather than the generic temporary work sector, if the majority of its agency workers were supplied to hirers in a particular sector. An employer pays social security contributions according to the sector they are affiliated to. The choice of sector determines the premium the employer has to pay and, in some cases provides for lower social security premiums.

All staffing companies will now be allocated, in terms of the percentage of social security premiums to be paid, to the so called 'sector 52' which is for staffing companies exclusively. This measure is likely to increase the costs of certain classes of agency worker. Jurriën Koops, director ABU said "I think it's an unwise decision and see no need and urgency for this. The minister's decision ignores the real discussion about the organization and financing of the sector funds."

While many agencies will simply try to pass on the increased cost to their cliens, according to Jorgo Tsiris, partner at Osborne Clarke’s Netherland Office, this may lead to some staffing companies changing their business model to fit within a lower social security percentage. He said, “They might do this by reframing their supplies so that they charge on an output basis for pre-defined deliverables. Or they might offer so-called margin only arrangements where they merely introduce the worker and the worker works direct for the end user.”