What does absenteeism insurance cost?
Although absence insurance is not required by law, it is often wise to purchase one. Suppose one of your employees gets sick. You then have to deal with a lot of costs, such as continuing to pay the salary for 2 years, costs for replacement staff, absence supervision and reintegration. All together, these costs can add up. With absence insurance you are covered for this. But what does absenteeism insurance actually cost? On Alpina.nl we list the costs of absenteeism insurance for you.
Average costs of absenteeism insurance
To calculate the premium, an insurer uses a premium percentage. The premium for an absence insurance can be calculated by multiplying this premium percentage with the total wage costs. On average, the premium is between 1.5% and 5.5% of the total wage costs. The amount of the percentage depends on various factors.
When calculating the premium for an absence insurance, an insurer looks at:
- The composition of your staff (age, number of part-timers, etc.)
- The sector or industry in which you work
- The absence figures of the last 3 years
Cost of absenteeism insurance per year
Every company is different. That is why the premium for absenteeism insurance differs per organisation. Each year, the premium is reviewed. We look at whether the company data has changed and whether there have been personnel changes, as a result of which the age distribution has changed. In addition, the ratio between how much has been paid out in the past year and how much premium has been paid is looked at. They also look at the absenteeism rate over the past three years and at the premium. Certain structural changes in a sector can sometimes lead to an adjustment.
Sick employee costs
Did you know that many organisations do not know how much a long-term sick employee costs? This is in fact one and a half times as much as most people think. If your employee is sick, you have to deal with different cost items. The biggest cost is the continued payment of wages. As an employer, you are obliged to continue paying the salary of your employee for two years in the event of illness. This is also referred to as the wage payment obligation. Legally, an employee receives at least 70% of his/her gross salary. If your company has signed a CAO, this may differ. Many CLA's stipulate that the sick employee receives 100% of the gross salary in thefirst year and 70% in thesecond year.
In addition to the obligation to pay wages, you will be faced with a number of other costs, such as costs for absence counselling, replacement staff, costs because you may lose sales and costs when the employee is reintegrated. The Central Planning Bureau has made an example of the costs per day for a sick employee. This is based on an average annual income in the Netherlands of €36,500.
| Cost per day | |
|---|---|
| Continued payment of wages | €153 |
| Cost of replacement staff | €146 |
| Loss of production | €43 |
| Occupational health and safety service costs | €60 |
| Leave of absence | €7,50 |
| Total cost | €410 |
Request a quote directly through Alpina
At Alpina.nl you can easily request a quote for absence insurance. All we need for this is some information about your company and your staff. Are you unable to find it or do you still have questions? Then you can contact us. You can reach us by phone at 088 - 688 37 12. We will be happy to assist you.
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