I am currently researching sick leave policy specifically in the Netherlands. By law, employees going on an extended leave of absence due to health related matters have a reduction in pay to 70% of basic salary. Some companies cover this deficit by enhancing pay so employees do not see a drop in salary. Trying to gauge whether this is a norm in Netherlands - does anyone have insight into whether this is an accepted norm or not? Thanks in advance.
Hi Tim, based on my market reseach via Mercer & WTW it is customary that the employer pays 100% of salary for the first 52 weeks
Hi Henk - appreciate the reply. We are quite small, but in a competitive landscape for talent so expectation is high. Are you aware of any data sources that detail this in anyway? We are good for when disability insurance kicks in but the phased approach you've taken is certainly useful, Thanks for sharing.
Hi Tim,
This is different from company to company. Very often this is part of the union negotiations. Typically larger companies cover the difference to some or full extend.
In my company in The Netherlands this is covered in the collective agreement.
Employee is, up to a maximum of 24 months, entitled to
- Month 1 to 6 100% of annual base salary
- Month 7 to 12 90% of annual base salary
- Month 13 to 24 85% of annual base salary
On top of this companies can also take out additional insurance to cover for the loss of income after 24 months (enhanced disability insurance).