Is absence insurance mandatory?
Taking out sick leave insurance is not mandatory. As an employer, you decide for yourself whether or not to take out sick leave insurance. With sick leave insurance, you are covered for the costs incurred when your employees become ill. This can be a relief, as an employee on sick leave can result in significant expenses.
As an employer, you are required to continue paying the wages of an employee on sick leave for up to two years. At Alpina.nl , we Alpina.nl the costs associated with an employee on sick leave and why taking out sick leave insurance may be a wise decision.
Not required, but advisable
Although taking out sick leave insurance is not mandatory, it is wise to consider doing so. Sick leave insurance protects you and your business against the financial risks associated with an employee’s illness. If your employee is on long-term sick leave, this often entails high costs. Are you still unsure about taking out sick leave insurance? Then take a close look at your company’s financial capacity. Suppose you have several employees on long-term sick leave; can you absorb the costs of their absence yourself? By assessing the risks of sick leave, you can make an informed decision.
Costs associated with a sick employee
Research shows that an employee on long-term sick leave costs more than one and a half times what most organizations expect. When an employee is sick, you face various costs. As an employer, you are required to continue paying your employee’s wages for two years. This is known as the obligation to continue wage payments. By law, an employee receives at least 70% of their gross salary. If your company is bound by a collective bargaining agreement (CBA), this may vary. Many CBAs stipulate that the sick employee receives 100% of their gross salary in thefirst year and 70% in thesecond year.
In addition, you will incur other costs, such as those related to absence management and temporary staff, lost revenue, and the costs associated with the employee’s return to work. The Netherlands Bureau for Economic Policy Analysis (CPB) has provided an example of the daily costs associated with an employee on sick leave. This example is based on an average annual income in the Netherlands of €36,500.
| Cost per day | |
|---|---|
| Continued payment of wages | €153 |
| Costs of temporary staff | €146 |
| Loss of production | €43 |
| Health and safety service costs | €60 |
| Absenteeism Support | €7,50 |
| Total cost | €410 |
Sign up for sick leave insurance right away through Alpina!
As you’ve read, there are a lot of costs involved when one of your employees takes a (long-term) sick leave. Sick leave insurance can therefore provide a great deal of peace of mind. Of course, you’ll want to know exactly how much sick leave insurance costs. You Alpina.nl easily request a quote at Alpina.nl . The quote includes an overview of the various insurance plans, allowing you to easily compare premiums for sick leave insurance on your own.
Do you have any questions about taking out sick leave insurance? Please don’t hesitate to contact us! We are available by phone Monday through Friday from 8:00 AM to 6:00 PM at 088-688 3712
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