Two kinds of benefit are available under the WIA
The WIA is designed to ensure that the employee always benefit financially if the employee continues to work, whether on a fulltime or parttime basis. A benefit is also available, however, for those who are truly no longer capable of working.
Two kinds of benefit are available under the WIA:
- if the employee is fully occupationally disabled and has a very small chance of recovery, the employee will receive a benefit under the Income Provision Scheme for People Fully Occupationally Disabled (IVA);
- everyone who is partially occupationally disabled may be eligible for a benefit under the Return to Work Scheme for the Partially Disabled (WGA).
Employees who are partially disabled can fall back lower than 50% of the minimum wage, which equals € 9.230 per year.
There are typically two kind of employee benefits offered to prevent dramatic loss of income at long term disability.
WGA Gap: This insurance covers the loss of income when an employee is not capable of finding work for the remaining working capacity.
Annual premium is calculated over the insured salary, maximized to the social security ceiling.
Typically this premium is paid 100% by the employer.
WIA Excess: This insurance covers the loss of income caused by the fact the employee was earning a higher salary than the maximum social benefit. Typically 70% or 80% of the difference between the social security ceiling and the actual salary.
The annual premium is calculated over the insured amount and is typically paid 1/3 by the employee and 2/3 by the employer.