What does supplemental WIA insurance cover?
Unfortunately, disability cannot always be prevented. If one or more of your employees becomes unable to work, their income will drop significantly. They will then receive WIA benefits, but this often still represents a significant step backward. To prevent your employees from facing financial difficulties, you, as an employer, can purchase supplemental WIA insurance. This helps prevent a significant loss of income should your employee become unable to work for an extended period. It’s a great employee benefit!
How does the WIA work?
WIA stands for the Work and Income according to Labor Capacity Act. If an employee becomes unable to work, the employer is required to continue paying the employee’s wages for the first two years. Once the employee has been unable to work for more than two years, the obligation to continue paying wages ends, and the employee becomes subject to the WIA. The employee then receives a statutory WIA benefit from the UWV.
The WIA consists of two types of benefits: the WGA (Return to Work Scheme for Partially Disabled Persons) and the IVA (Income Support for Fully Disabled Persons). An employee receives a WGA benefit if they have been sick for 2 years or longer and are between 35% and 80% incapacitated for work. They receive an IVA benefit if they are fully and permanently incapacitated for work. In that case, the employee is unable to work or can work only very little, and there is a very small chance that they will recover. This refers to a degree of incapacity for work exceeding 80%.
Various supplemental WIA insurance policies
There are several types of supplemental WIA insurance available:
WGA Gap Insurance
WGA stands for “Return to Work for Partially Disabled Employees.” If an employee is more than 35% disabled, the WGA applies. The WGA gap is the loss of income that can occur if an employee is on long-term disability. After two years, when the employer’s mandatory continued wage payments cease, the employee receives a WGA wage-related benefit. After a minimum of 3 months and a maximum of 24 months, this benefit transitions to a WGA benefit (wage supplement/follow-up). A WGA gap occurs when the employee receives the WGA follow-up benefit and their total income falls below 70% of their insured annual wage. If a WGA gap arises, it means your employee’s income drops significantly, by as much as 30% of their former income. To protect your employee against this, you, as an employer, can take out WGA gap insurance.
With WGA gap insurance, your employee receives a supplement to the statutory WGA continuation benefit in the event of a WGA gap. In that case, the insurer supplements the employee’s income up to 70% multiplied by the disability percentage multiplied by the former salary.
WIA Excess Supplemental
WIA Excedent insurance is for employees whose salary exceeds the WIA wage limit or €100.00. Your employees are then insured for 70%, 75%, or 80% of their salary above the WIA wage limit or €100.00. The benefit period can extend up to a fixed retirement age or until the actual state pension age. The WIA wage limit is reassessed each year.
Want to get supplemental WIA insurance? Request a quote at Alpina.nl
At Alpina.nl, you can request a no-obligation quote for WIA insurance. Based on some information about your organization, we can provide you with an accurate quote. Do you have any questions about purchasing WIA insurance? Please feel freeto contactus! Our insurance specialists are happy to help you.
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