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Compensation for injuries from work
There have been no changes in this compensation scheme in the period considered. 85 per
cent of the lost income is compensated. Table 4.6 contains the result of the calculations.
Table 4.6. Impact on annual disposable income from injuries from work. APW income level.
1994
1995
1996
1997
1)
Single, 100% injured
Reduction in disp. income %
8.2
7.4
7.6
7.7
Net replacement rate %
91.8
92.6
92.4
92.3
Single, 33 1/3 % injured.
Reduction in disp. income %
2.3
2.2
2.3
2.2
1) Preliminary calculation (
Elements').
The change from 1994 to 1995 (100% injured) is due to the mentioned 'twist' (cf. Personal
taxation) in the social contributions where the contribution percentage from wage was in-
creased and that from 'all' income (including compensation for industrial injuries) was
lowered. The changes in the following years are relatively marginal.
Old age pensions
The most significant change was in the 'integration' between the public occupational
pension scheme and the basic national pension. From 1996 the complete basic national
pension was included in the 'integration', not just the supplementary amount, as had been
the case before 1996. The implication is that there will be no national pension at all if the
occupational pension is high enough. Before 1996 the pensioner always kept the basic
amount of the national pension. The rates in the national pension scheme increased very
slowly in the period 1994 to 1997. The result of the pension calculations for each of the
years 1994 to 1997 is contained in table 4.7.

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104
Table 4.7. Net replacement rates (%) for pensioners (starting at 65 years). The reference for singles is the
APW income level, for the couple it is 1.5 times that level.
1994
1995
1996
1997
1)
Single, 
full working record
68.8
69.6
66.9
65.8
Single, 
no working record
37.2
35.3
34.0
32.3
Couple, 
full working record 
(1.5 APW income)
73.5
73.2
71.1
69.6
1) Preliminary calculation (
Elements').
The decreasing net replacement rate for the single pensioner with no former work record
and then only receiving national pension is as should be expected.
The effect of the 'integration' change in 1996 is easily seen, the net replacement rates drop
in the two cases (single and couple) where there is a full work record.
The increase in net replacement rate for the single pensioner (full work record) from 1994
to 1995 is due to the increased tax burden for the APW in full employment, cf. table 4.3,
combined with a slight decrease in tax burden for the pensioner. The opposite movement
from 1996 to 1997 is primarily due to the tax reduction in 1997, which is most important
for non-pensioners.
The just mentioned increase for the single (1994 to 1995) is not found for the couple which
experienced a slight decrease in net replacement rate from 1994 to 1995. This immediately
surprising development is mainly because substantially more of the supplementary national
pension for the wife (former ½ APW) is tapered away in 1995 than in 1994. There was
also a slight increase in the tax burden for the pensioner with former ½ APW income
primarily due to a more reduced local tax allowance in 1995 than in 1994. The tax allow-
ance, which was not very different in the two years, is means tested. In the case of the
husband (former 1 APW) this allowance was tapered to zero in both years. 1997 saw a
further decline in the net replacement rate for the couple for the same reason as mentioned
for the single pensioner.