Unlike accident insurance, which is compulsory, taking out daily sickness allowance insurance is voluntary. You are, however, obliged to carry on paying the wages of any employees who have fallen ill or had an accident. How long this obligation lasts depends on seniority and region. That's why businesses find that taking out daily sickness allowance insurance pays off.
Helsana Business Salary daily sickness allowance takes over from firms the obligation to pay continuing wages up to the point where social insurance may start paying out. That means the employees are better off, while their employer benefits from the predictability of the costs involved.
Insurance obligations and options in the event of illness
||Compulsory insurance obligation or obligation to continue salary payments
||Voluntary insurance option
What you have to think about when taking out daily sickness allowance insurance:
You decide for yourself when the insurance benefits kick in. During this waiting period, you, as an employer, are still obliged to keep on paying the employee's wages. So a longer waiting period is more financially risky and means you need a bigger financial buffer. There again, you do save on premiums.
And it's worth remembering that shorter illnesses happen more often than longer ones.
Amount of benefits
The amount of the benefits determines just what proportion of their wages employees receive when they're ill. The proportion is very often 80%. It's assumed that employees can cope with this sort of reduction in income. This proportion is also the most that the employer is obliged to continue to pay as wages, so the insurance benefit is recognised as equivalent. Lower benefits mean cheaper premiums. You should ask yourself, though, whether all your employees can cope with the loss of 20% of their income.
Groups of persons
Lots of firms have a diverse workforce. Their risks and their needs for security are just as varied. That's when it makes sense to split your employees into groups of persons with different fringe benefits.