Equal opportunities for all
The Netherlands’ first social legislation dates from 1800. It was a very minor law setting down rules for employing young people and women, but it was the first in what would become the most extensive, generous body of social legislation in the world. However, the entire social system is now under pressure because it has become too expensive. In the past few years, it has undergone radical reform to prevent abuse and reduce sick leave. But the current system is still regarded as one of society’s most important achievements.

A flourishing community
The main priniciple underpinning the Dutch social system is that everyone should be able to play an equally active role in society. Some people need help in doing so: the old and disabled, families on low incomes, young people without qualifications, ethnic and other minorities, the homeless and drug addicts.

In giving this help, the government is also pursuing another aim: to encourage people - older people and the long-term unemployed, for instance - to find a job. At the same time, the government is tackling youth unemployment by funding job creation and on-the-job training.

There are many other examples of the current welfare policy. Local authorities are being encouraged to expand childcare facilities to enable women to continue working or to return to work. Parents who are having problems raising their children or whose children are at risk of falling behind can also get help. And long-term unemployed people can be given help in tackling problems ranging from debt to psychological complaints. In April 2003, the government adopted the Equal Treatment of Disabled and Chronically Ill People Act. It protects disabled people from discrimination, enabling them to take full part in society.

The local authorities are mainly responsible for social welfare, and they are increasingly opting for strategies at neighbourhood level, with integrated solutions to social and economic problems. The aim is to create flourishing communities, in which every resident feels involved.

Integration of minorities
Integration of minorities is one of today’s most daunting political challenges. It is certainly one of the problems confronting Dutch society. Minority groups in the Netherlands include people from the Dutch overseas territories (the Antilles and Aruba) and from Suriname, and people who came to the Netherlands to work or to seek asylum. Together, they account for approximately 10% of the total population. The capital, Amsterdam, is home to 200 different nationalities.

In the past few decades, the Netherlands has developed into a multicultural society, where people from many different origins live together. The Dutch have a reputation for tolerance when it comes to people with different convictions or beliefs. It all started in the 17th century, when the Netherlands gave asylum to people who were persecuted in their own countries, mainly for their religious beliefs.

The Dutch government clearly opted for a multicultural society, in which everyone is free to practise their own religion, speak their own language and maintain their own culture, with equal opportunities for all. It would be fair to say that the Netherlands is a country in which a tolerant, smoothly functioning society has a high political priority. 

But integration does not come easy. People of Turkish and Moroccan origin, for instance, are five times more likely to be unemployed than ethnic Dutch. So the government wants to encourage these groups to take part in society by, for instance, giving them the opportunity to undergo training and - through legislation - providing incentives for employers to employ them.

Compulsory integration courses are also a means of preventing disadvantage. Shortly after arriving in the Netherlands, new immigrants now have to attend courses in Dutch language and society, and they receive help finding a job.

Keeping the social security system affordable
Another important political issue is the social security system. The Netherlands has quite a reputation to keep up, because its system is regarded worldwide as trendsetting, but often as unaffordable.  Many people in the Netherlands now agree. Given the need for social equality, the government’s aim is to keep the system as far as possible intact.

However, changes have already had to be made. For instance, to invalidity benefit schemes, which have nearly one million claimants. Most political parties agree that this figure is far too high, certainly compared to the total number of people in work. The Invalidity Insurance Act will have to be changed in such a way that more people stay in work, and neither employers nor employees can continue to abuse the schemes. One way is to raise the requirements and make the schemes unattractive. But there has been much opposition from the general public, because they regard these schemes as a vital necessity.

The system
A summary of the various national and employee insurance schemes is given below. Everyone living or working in the Netherlands is covered by one of them. They are paid for jointly by employers and employees.

National insurance
-General Old Age Pensions Act (AOW): this Act gives everyone the right to an old age pension from the age of 65.
-The Surviving Dependants Act (ANW): this Act governs the right to benefits for the surviving spouse or partner.
-The General Child Benefit Act (AKW): under this Act, parents or carers are entitled to an allowance for each child under the age of 18.
-The Exceptional Medical Expenses Act (AWBZ) provides cover against serious medical risks not covered by public or private health insurance.

Employee insurance
-The Sickness Benefits Act: under this Act, employers have to pay employees 70% of their salary during their first year on sick leave. That also includes pregnancy, childbirth and organ donation. Women are entitled to sixteen weeks’ maternity leave on full pay.
-The Unemployment Insurance Act (WW): this Act insures employees below the age of 65 against the financial consequences of unemployment. Under certain conditions, they receive 70% of the minimum wage for the first six months. Other conditions apply for earnings-related unemployment benefit.  The duration of earnings-related benefit varies from six months to five years depending on the claimant's working history.
-The Invalidity Insurance Act (WAO): this Act insures workers against the risk of losing income through prolonged illness or disability. To be eligible, they have to meet a number of criteria. For instance, they must have been at least 15% unfit for work for 52 weeks. Invalidity benefit is paid for five years. The claimant then has to put in a new application. The size of the benefit depends on degree of invalidity, earnings and age.
-The Health Insurance Act: this provides cover against the costs of medical and paramedical treatment, hospitalisation, and some dental treatment. The scheme is implemented by several public health insurance funds.

Apart from these acts, there are a number of schemes that supplement incomes to raise them to the minimum level. The Work and Social Assistance Act (WWB) is the most important, and applies when people have too little or no income. There are also schemes to encourage disabled and long-term unemployed people to look for work, like the Disability (Reintegration) Act.