Insurance and pensions

Short-term daily allowance insurance covers the waiting period until your daily sickness benefits insurance comes into effect. If you have this insurance, you can pass continued pay, which is subject to deductions for social security, over to an insurer and convert it into daily allowance benefits. Daily allowance benefits are not subject to deductions for social security, which means that you can cut costs.
 

If your personnel regulations envisage net wage adjustment, the entire savings will be to the benefit of the employer. In most cases, short-term daily allowance insurance also has a positive effect on absence rates since it increases the focus on absence management.

As there are no mandatory deductions for social security, the employer can save on average 15–17% of total continued pay, less approximately 5% for risk and administration costs. The rest is the employer’s savings.
 

In the final account, the premiums are settled against the benefits actually received. After deduction of the risk and administration costs, any surpluses are reimbursed in full. The cost rate is defined as a percentage (usually 5%) of the benefits and is contractually fixed.

Important questions