Who is actually covered by the compulsory incapacity for work insurance for the self-employed?

What exactly is the BAZ again?

The BAZ introduces compulsory basic insurance against incapacity for work for a large group of self-employed people and was part of the 2019 pension agreement. Self-employed people who become unable to work can, after a two-year waiting period, rely on a public safety net administered by the UWV.

Under the current bill, the benefit amounts to a maximum of 70 per cent of income up to the minimum wage. In addition, there is a two-year waiting period before a claim can be made for benefits. In the meantime, self-employed people contribute up to 171 euros gross per month to the BAZ. Self-employed people who prefer more comprehensive cover may, subject to certain conditions, opt for private insurance via an opt-out scheme. The conditions are:

1. The policy is held in the name of the self-employed person themselves.
2. The waiting period is a maximum of 104 weeks.
3. On the reference date, the policy must provide the prospect of benefits until at least the insured person’s 55th birthday.

Please note: all self-employed individuals subject to income tax contribute to the scheme in any case via a stability contribution; this is therefore separate from the monthly premium. The amount of this contribution is yet to be determined in the further elaboration of the bill.

Which self-employed people are covered by compulsory incapacity insurance?

The BAZ is aimed at self-employed people who are classified by the Tax and Customs Administration as entrepreneurs for income tax purposes, also known as ‘IB entrepreneurs’ (up to state pension age). This amounts to nearly 1.2 million self-employed people.

This includes, amongst others:

• self-employed people running a sole trader business (zzp);

• entrepreneurs in a general partnership (vof);

• entrepreneurs in a professional partnership;

• self-employed people with staff who qualify for income tax purposes as entrepreneurs.

The legal form of the business is not decisive in this regard. The Act is aligned with the existing tax definition of an entrepreneur. Anyone who derives business profits for income tax purposes falls, in principle, within the scope of the BAZ.

Does the BAZ apply to all self-employed people?

The short answer: no. In public debate, the terms ‘freelancer’, ‘entrepreneur’ and ‘self-employed person’ are often used interchangeably. However, the bill explicitly adopts a tax-based approach. As a result, not all individuals who consider themselves self-employed automatically fall under the scheme.

The key question is whether the income constitutes business profits for income tax purposes. Only then does a person qualify as an income tax entrepreneur and does the BAZ come into play. Please note: this therefore also applies to self-employed people WITH staff.

Self-employed people who are not affected include:

Director-major shareholders (dga’s)

This group carries out work through a private limited company (BV) and is not covered by the BAZ.

Beneficiaries of profits

Individuals who receive income from other activities are also excluded from the scheme. Examples include people who carry out occasional assignments without being classified as entrepreneurs for income tax purposes.

Assisting partners

Partners who assist in a business without themselves being classified as entrepreneurs for income tax purposes are also excluded from the scope of the BAZ.

Excess

No two self-employed people are the same. So what about hybrid workers who are both employed and self-employed? The law also takes this group into account: to prevent such workers from being doubly insured against the same risk of incapacity for work, the BAZ applies a franchise (a deduction from the contribution base for income on which employee contributions are already paid) based on WIA-insured wages. The wages on which employee contributions are already paid are included in the calculation of the BAZ contribution. Depending on the level of wages from employment, the BAZ contribution may therefore be lower or even waived.

Is the BAZ already finalised?

Not formally speaking. The bill was tabled in the House of Representatives on 24 March 2026, but is still awaiting further parliamentary scrutiny. This means that parts of the scheme may still change. In the run-up to the parliamentary debate, the Ministry of Social Affairs and Employment (SZW) provided further details and clarification to the SZW Parliamentary Committee during a technical briefing on 13 May, followed by dozens of questions submitted by the Committee on 27 May.

A number of questions refer, amongst other things, to the critical advisory opinion issued by the Council of State in 2025. This opinion calls for particular attention to be paid to, amongst other things, the feasibility of the proposal and its interaction with existing schemes within the disability insurance system.

We are now awaiting the government’s responses to these questions. Only after approval by both the House of Representatives and the Senate will there be definitive clarity regarding the content of the Act and the date of its entry into force.

When is the BAZ expected to come into force?

The intended implementation date is currently around 2030. However, this depends on the progress of the legislative process, the new feasibility assessments and further consideration in both the House of Representatives and the Senate. Self-employed people would therefore be well advised to follow developments regarding the BAZ closely, for example via Striive or the ZiPconomy knowledge platform.

As the bill has not yet been definitively adopted, changes and amendments may still be made by the House of Representatives and the Senate. However, in the run-up to 2030 – just as in 2024 – another implementation review will be carried out by the Tax and Customs Administration and the UWV.

At Striive, we will continue to monitor developments surrounding the BAZ closely and explain what they mean for you as a self-employed professional.