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Absenteeism insurance covers continued payment of wages for sick employees — the employer is legally required to continue paying for 2 years (104 weeks), at a minimum of 70% of wages. For SMEs with employees: usually indispensable. Three main types: conventional (all covered), deductible variant (first 30-90 days self-insured), stop-loss (only above the threshold). Premium: 2-7% of the total payroll — depending on industry, age structure, and deductible. Below: which type when, and how Tessa chooses for her 12 employees.
The short answer
- What: covers continued payment of wages for sick employees (maximum 2 years statutory obligation).
- Premium: 2-7% of total payroll — depending on industry and deductible.
- Three forms: conventional, own risk variant, stop-loss.
- Mandatory continued payment of wages: 104 weeks, minimum 70% of the final wage.
- Reintegration: often linked to policy (company doctor, occupational health and safety).
What does absenteeism insurance cover?
Statutory continued payment of wages during illness:
- First 52 weeks: at least 70% of the last salary (often 100% via collective labor agreement).
- Second 52 weeks: minimum 70% (sometimes less via collective labor agreement).
- Total: 104 weeks (2 years).
Plus often:
- Occupational health services.
- Occupational health and safety package (prevention, risk assessment).
- Reintegration guidance.
- Case management.
Not covered: salary above the statutory minimum (often covered via collective labour agreement), UWV fines for non-compliance with the Gatekeeper Act, long-term WIA benefit (separate).
Three main forms
1. Conventional
Everything covered from day 1 — insurer pays continued salary. Highest premium (5-7% of payroll), but predictable.
2. Deductible variant
Employer pays for the first 30-90 days themselves, the insurer only after that. Lower premium (3-5% of total payroll). Suitable for:
- Stable workforce with lower absenteeism.
- Sufficient cash flow for initial periods.
- Lower absolute premium burden.
3. Stop-loss
Annual deductible limit (€50,000-€200,000 continued salary payment); insurer only covers amounts above this. Low premium (2-4% of total payroll). Suitable for:
- Large employers (50+ employees).
- Very stable absenteeism.
- Need for coverage in the event of large-scale outages.
Premium factors
- Sector: construction, healthcare, hospitality higher; office lower.
- Age structure: older staff, higher premium.
- Previous absenteeism history:higher absenteeism = higher premium.
- Deductible level: higher deductible = lower premium.
- Collective Labour Agreement provisions: 100% continued payment versus 70%.
Collective Labour Agreement aspect
Many collective labour agreements stipulate 100% salary continuation during the first 52 weeks (instead of the statutory 70%). The policy must therefore also cover 100% — resulting in an additional premium.
Gatekeeper Improvement Act
Both employer and employee must actively cooperate in reintegration during illness. In case of non-compliance: UWV sanction of an extra year of continued salary payment (a total of 3 years instead of 2). Absenteeism insurance often does not cover this sanction year — the risk lies with the employer.
Guidance by an occupational health service is indispensable — often included in the policy.
Tessa's absenteeism insurance
Tessa has 12 employees (total payroll € 600,000):
- Conventional: 5% × € 600,000 = € 30,000/year = € 2,500/month.
- Deductible variant (90 days): 3.5% × € 600,000 = € 21,000/year = € 1,750/month.
- Stop-loss: 2.5% × € 600,000 = € 15,000/year, deductible € 100,000.
Tessa opts for the deductible variant (90 days) — a middle ground between costs and risk. In the event of a 1-month illness: pay out herself (~€4,000); in the event of a longer illness: insurer.
How do you choose between shapes?
- Small SME (5-15 employees): conventional or limited deductible (30 days).
- Medium (15-50): deductible variant 60-90 days.
- Large employer (50+): stop-loss with high own annual limit.
- High absenteeism risk (construction, healthcare): conventional despite higher premium.
Honest recommendation
For SMEs with employees: absenteeism insurance is virtually mandatory. Uninsured continued salary payments for 2 years on an annual salary of €60,000 = €84,000 — financially unsustainable for SMEs. Choose a policy based on staff stability and cash flow. Compare at least 3 companies — premium differences of up to 30%. Combine with good occupational health and safety services (Poortwachter compliance) and prevention programs.
For other topics: insurance for SME companies, WIA insurance and WGA deductible.
Frequently Asked Questions
Insurance covering continued payment of wages for sick employees — legally mandatory for 2 years (104 weeks), at least 70% of wages. Often includes occupational health and safety services and reintegration guidance.
Conventional (everything covered from day 1, highest premium). Deductible variant (self-insured for the first 30-90 days, lower). Stop-loss (own annual limit €50,000-€200,000, lowest). The choice depends on size and stability.
2-7% of the total payroll depending on the type. Conventional 5-7%, deductible variant 3-5%, stop-loss 2-4%. Plus factors: industry, age structure, previous absenteeism, CLA provisions (100% versus 70%).
Small SMEs (5-15): conventional or 30-day deductible. Medium-sized (15-50): 60-90-day deductible. Large (50+): stop-loss with high own limit. In high-risk sectors: conventional despite premium.
Law obligating employer and employee to active reintegration during illness. In case of non-compliance: UWV sanction of an extra year of continued salary payment (total 3 years). The policy often does not cover the sanction year.
Often yes — absenteeism insurance is often included in a package with occupational health and safety services, a company doctor, and reintegration guidance. When insurance and occupational health and safety are separated: separate contracts — make a conscious choice for optimal chain quality.
Yes, absenteeism insurance covers the first 2 years. After that, the employee switches to a WIA benefit (UWV); WIA supplementary insurance provides additional coverage beyond the UWV. The WGA deductible is the choice to bear the cost of partial disability oneself instead of the UWV.
