What does supplemental WIA insurance cover?
Unfortunately, incapacity for work cannot always be prevented. If one or more of your employees become incapacitated for work, their income will be significantly reduced. They will then receive WIA benefits, but this often still means a significant step backwards. To prevent your employees from getting into financial difficulties, you as an employer can take out supplementary WIA insurance. This will prevent a significant loss of income if your employee becomes incapacitated for work for a long period of time. A great secondary employment condition!
How does 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 falls under the WIA. He or she 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 Scheme for Fully Disabled Persons). An employee receives a WGA benefit if they have been ill for two 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 of recovery. This involves a degree of incapacity for work exceeding 80%.
Various supplementary WIA insurance policies
Various supplementary WIA insurance policies are available:
WGA gap insurance
WGA stands for Return to Work Scheme for People with Partial Occupational Disability. If an employee is more than 35% incapacitated for work, they will be subject to the WGA. The WGA gap is the loss of income that can arise if an employee is incapacitated for work for a long period of time. After two years, when the employer's obligation to continue paying wages ends, the employee receives a WGA wage-related benefit. After a minimum of 3 months and a maximum of 24 months, this benefit is converted into a WGA benefit (wage supplement/follow-up). A WGA gap occurs if the employee receives the WGA follow-up benefit and their total income falls below 70% of their insured annual salary. If a WHA gap arises, this means that your employee's income will drop significantly, to 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 will receive a supplement to the statutory WGA follow-up benefit if there is a WGA gap. In that case, the insurer will supplement the employee's income to 70% of the disability percentage times the former salary.
WIA Excess insurance
WIA Excess insurance is for employees with a salary above 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 compensation period can run up to a fixed retirement age or up to the actual state pension age. The WIA wage limit is determined each year.
Want to take out supplementary WIA insurance? Request a quote at Alpina.nl
At Alpina.nl , you Alpina.nl 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 taking out WIA insurance? Please don't hesitateto contactus! Our insurance specialists will be happy to help you.
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