Sickness Absence Insurance: Who Qualifies and What You Get
Small business owners in the Netherlands can learn how this insurance covers mandatory salary payments for employees during illness.
This insurance provides coverage to help businesses manage the costs associated with paying employees who are unable to work due to illness.
Who it's for
This scheme is designed for small business owners who have employees on their payroll.
What you get
If an employee becomes ill and cannot work, this insurance helps cover the cost of the mandatory salary payments you are required to provide for a period of two years.
What it costs you
You will pay monthly premiums to a private insurance provider. The specific cost depends on the size of your payroll.
The catch to know
A common misconception is that the government covers the salary of a sick employee. In the Netherlands, it is the employer's legal responsibility to continue paying the employee's salary during illness, which is why this insurance is used to mitigate that financial risk.
How to apply
- Contact private insurance companies to compare different coverage options.
- Provide details regarding your current number of employees and payroll size.
- Select a policy that covers the mandatory two-year salary period.
- Set up monthly premium payments to maintain continuous coverage.