Published On: Mon, Jan 28th, 2013

Employers pay 1.9 percent extra on loss of wages

WILLEMSTAD – Employers are to pay 1.9 percent extra on premium for loss of wages if employees become sick. The extra premium percentage must be announced through a national decree on general measures by the Minister of Health, Environment and Nature, Ben Whiteman (PS). With the introduction of the basic medical insurance (bvz) the total premium burden for the employer has now become 10.9 percent. The employee is to pay 3 percent. This was confirmed by the Director of the Social Insurance Bank Phillip Martes.

With the former medical insurance the contribution for loss of wages was included in the 8.3 percent of the employer’s contribution.

There seems to be some confusion within the government on the new regulation for loss of wages.

Minister Whiteman was not informed of the extra 1.9 percent premium for loss of wages. Nevertheless, he knows he is to announce several national decrees regarding the introduction of the bvz.

Loss of wages means that the SVB compensates 80 percent of the employee’s salary in case of sickness. However, this only applies for employees falling under the medical insurance wage premium level of 5135 guilders per month.

The introduction of the bvz must be seen as a harmonization of the current crumbled rule, and within the framework of revising the system in the medical health sector, with the aim to improve the quality of the health service, is the cost control of the medical care and a shift from sickness and care to behavior and health.

A monthly income-dependent premium must be paid in addition to an annual nominal premium. The nominal premium is 82 guilders per year. People earning less than 1000 guilders per month are exempted from the nominal premium. Those earning 12,000 guilders or less per year will not pay any income-dependent premium that year. People earning more than 12,000 guilders in one year and are retired pay 10 percent premium on that part of the entire income that is less than 100,001 guilders. Those earning over 12,000 in one year and are not retired will pay 12 percent premium on that part of the entire income that is less than 100,001 guilders. If there is a question of an employer/employee relation the employer will pay 75 percent of the 12 percent premium and the employee 25 percent.

The government also contributes toward the bvz. In 2013 it will be 235 million, in 2014, 244 million and in 2015, 251 million guilders.

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