The cost of absenteeism: why absenteeism insurance saves money
As an entrepreneur, you know how important your employees are to the success of your business. But what happens when an employee is absent from work due to long-term illness? Many SME entrepreneurs underestimate the costs of an employee's illnessIn addition to continued payment of wages, there are often additional costs. In this article we explain how high the wage costs in case of illness can arise, and how absenteeism insurance can protect your company.
The real costs of a sick employee
By law, employers are required to pay at least 70% of a sick employee's salary for a maximum of two years. In practice, many employers choose to pay 100% in the first year.
In addition, there are additional costs, such as:
- Replacement staff (or overtime of colleagues)
- Reintegration and guidance
- Loss of productivity
- Administrative burdens
This means that the actual costs are often much higher than just the wages.
Calculation example: wage costs in the event of long-term sick leave
Suppose an employee earns €3,000 gross per month.
- Year 1: you pay 100% by → € 36,000.
- Year 2: you pay 70% by → € 25,200.
- Total labor costs in 2 years: € 61.200,-
Add to that the extra costs for replacement and reintegration, and you see that one long-term sick employee can easily cost your company €70,000 to €80,000 can cost.
For many SMEs, this is an enormous financial burden.
How absence insurance saves costs
A absence insurance Protect your company against these high costs. The insurer covers (a large portion of) continued salary payments during illness, and often also the costs of absenteeism management and reintegration.
The benefits:
- Financial security: you do not have to bear all wage costs yourself in the event of illness.
- Professional support: many insurers offer occupational health services and reintegration guidance.
- Cost savings: the premium is often only a fraction of the potential absenteeism costs.
Sickness absence and SMEs: prevent financial risks
For SME entrepreneurs, a single long-term sick employee can cause a significant budget loss. With absence insurance, you can cover this risk and ensure business continuity.
At Bouvy Advies, we're happy to help you choose the right absence insurance for your business. This way, you're protected against unexpected costs and can continue to focus on your business.
Do you want to know how much you can save with absenteeism insurance? contact Contact Bouvy Advies for personal advice.