Mandatory disability insurance (AOV) postponed until 2030

A legislative proposal from 2026 provides more clarity about mandatory AOV for entrepreneurs. In this article, you will find the most important points of the bill on basic disability insurance for self-employed persons (.

The aim of the law is to help entrepreneurs if they are unable to work for a long period of time, for example due to illness. Such a law already exists for employees with a contract, but not for self-employed persons. The rules and the date on which the compulsory AOV will come into effect have not yet been determined. First, the Lower House will assess the proposal. They can propose amendments. Then the Upper House will vote on it.

AOV for entrepreneurs

With an AOV, entrepreneurs insure themselves against loss of income due to illness or incapacity for work. This is currently not mandatory. The proposal states that the AOV will become mandatory for self-employed professionals who are considered entrepreneurs for income tax by the Netherlands Tax Administration (in Dutch). 

Many self-employed people do not have an occupational disability insurance policy (in Dutch). Some of them have other solutions to reduce the financial risk in case of incapacity for work.

The premium for mandatory AOV

The proposal states that you must have an AOV if you have profits from your business for income tax purposes.

The mandatory AOV does not apply to:

• directors of legal entities
• entrepreneurs who also work as employees
• assisting spouses and entrepreneurs who receive AOW

You pay a maximum of around €171 per month for the AOV. This amount is based on the minimum wage for 2025. The government will adjust this amount in the coming years as the minimum wage rises. You pay the contribution to the Netherlands Tax Administration. You can deduct the premium from your tax return. The UWV will pay out the benefit if you become unable to work.

Waiting period

Please note: if you fall ill, you will not receive any payments from the statutory AOV for the first 2 years. So you will need to make your own arrangements to cover this waiting period, such as using savings, or joining a donation circle. If you take out an AOV policy yourself, you can opt for a shorter waiting period. But you will then have to pay a much higher premium.

Mandatory AOV benefits

According to the proposal, the UWV will start paying incapacity benefit after 2 years of illness. You will receive this benefit until you reach state pension age. You are entitled to a benefit if you are no longer able to earn the minimum wage due to illness or injury. You pay tax on the benefit.

The benefit is 70% of your taxable profit and no more than the minimum wage. This is different from the situation for employees, where the wage they earned before they became ill is taken into account.

For people aged 21 and over, the minimum wage is €14.71 gross per hour as of 1 January 2026).

Opt-out of mandatory AOV

If you already have AOV insurance, a transitional arrangement applies. You can continue to be insured through an insurer, but only if the insurance meets the following conditions:

• The retirement age is not lower than 55.
• The waiting period is a maximum of two years.
• The insurance does not have a limited benefit period (for example, a benefit with a maximum of two or five years).

Take action before the reference date

You can only benefit from the transitional arrangement if you have taken out your own AOV before the reference date. The decision whether you already have an AOV that falls under the transitional arrangement is made at that date.

It is not yet clear when the government will announce the reference date. Compare the different AOVs available in advance to see which one suits you. A financial expert or insurance adviser can help you with this comparison. Things to consider include:

• What exactly does the AOV cover?
• How long is the waiting period?
• What is the premium?
• How much money will you receive in the event of illness?
• What is the age limit?

After the reference date: opt-out

You can still choose your own insurance after the reference date by opting out of the mandatory insurance. Please note: you can only opt out at the beginning of a calendar year (1 January) or at the end (end of December). This is the same as for health insurance.

Opt-out conditions

If you want to use the opt-out option, your insurance must meet a number of conditions. For example, the premium must be at least as high as that of the compulsory AOV. This condition does not apply to the transition arrangement. The benefit you receive may not be lower than that of the compulsory AOV. The disability insurance you choose must also continue until the state pension age.

Entrepreneur and employee

Do you also work as an employee in addition to running your own business? Then you are insured through your employer if you become ill or are no longer able to work. In that case, do you receive at least the minimum wage? Then you do not need to take out AOV insurance. The amount of your benefit depends on how much you earn as an employee.