If one loses work due to business economic circumstances, one will be subject to the Unemployment Act. In the event of illness, this is the Income and Labor Act. In both cases, people want to have certainty about how many rights they have within a benefit. Disability also means that one is partially unable to work. The benefit is provided on the basis of the actually unworkable part and the rest must be earned yourself. But what contribution can you take into account from the WW or WIA, how long does a benefit last and how can you calculate the amount of the benefit yourself?
Calculate unemployment benefit or WIA benefit
- Difference between WW and WIA
- Calculate non-wage related WIA benefit
- Incentive to keep working
- More than 80% disabled
Difference between WW and WIA
Under the Unemployment Insurance Act, people are insured against the occurrence of unemployment, because they have paid premiums during their working lives. In that case, one is completely fit for work. This is different with a WIA benefit. Due to an illness, people become partially incapacitated for work (35% to 80%), meaning they can work fewer hours. The wage-related benefit then ensures that the non-workable part is supplemented. The following difference applies to this:
unemployment benefits
For the first 2 months, you are entitled to 75% of your last earned salary and 70% thereafter. Suppose you earn 65,000 euros per year, after that 2 month you will still receive 45,500 euros per year or 3,792 euros gross per month.
Wage-related WIA benefit
If you are declared 60% incapacitated for work, you can still earn 40% yourself, or 65,000 * 40% = 26,000 euros. It may be that you receive less in wages, but this has no influence on the supplement within the benefit. You receive an additional 70%*(50,065-26,000) = 16,845.51 euros, which means you can have an income of 42,845.51 euros per year, corresponding to 65.92% of the previously earned salary. If you previously had a lower salary than the maximum limit, you can receive relatively slightly more income. With 45,000 euros as income, the following applies: 45,000*40% = 18,000 euros, which is supplemented with 70%*(45,000-18,000) = 18,900 euros. One therefore has an income of 36,900 euros per year, corresponding to 82% of the previously earned salary.
The duration granted for both benefits is the same. One must have worked at least 26 of the last 36 weeks, in addition to which one is entitled to at least 3 months’ benefit. If you have worked more than 4 years in the last 5 years, the benefit increases by 1 month for each year worked, up to a maximum of 38 months (3 years and 2 months).
Calculate non-wage related WIA benefit
If one has been declared unfit for work, one is partly entitled to benefits. The previous wage-related benefit has already been used up, resulting in a different benefit regime. If you want to receive sufficient supplementation from the benefit, you must actually earn more than 50% of the workable part. People are rewarded by working more. If one works less than that limit, the supplement is based on the minimum income. The following distinction applies to 55% disability:
Wage supplement benefit
Self-earning > 50% labor component: you can still earn 45%*65,000 = 29,250 euros yourself, but you must actually earn at least 14,625 euros of this. Then it is supplemented with (50,065-29,250)*70% = 14,571 euros. For an income of 45,000 euros, you can earn 45%*45,000 = 20,250 euros yourself, of which 10,125 euros must actually be earned. It is supplemented with (45,000-20,250)*70% = 17,325 euros.
Follow-up benefit
Self-earning < 50% labor share: the sick person throws in the towel and can no longer work. Less than the set limit is earned. In other words, one is supplemented up to the incapacitated part of 70% of the statutory minimum income. This amounts to 17,633 euros gross per year. One is 55% incapacitated for work and is then supplemented with 55%*70%*17,633 = 6,789 euros per year.
Incentive to keep working
The government’s argument is that people should remain involved in the labor process. Working more means that the sick person partly takes care of himself and that can be rewarded. By making a distinction in the degree of benefit, it is ensured that at least 50% of the eligible part of the work is always employed. Then you can benefit from a higher contribution as a benefit per year.
More than 80% disabled
If one is practically unable to do anything, one can be declared completely permanently incapacitated for work. This means that within the IVA, one receives up to 75% of the last earned wage until retirement age, with a maximum of 50,065 euros. In other words, with an original income of more than this amount, one never receives more than 75%*50,065 = 37,549 euros and with a last earned wage of 45,000 euros this is 75%*45,000 = 33,750 euros. Naturally, all benefit types will be checked periodically to determine the degree of actual disability.
Please note that if you earn more than the wage limit, the benefit will be limited to a maximum.
read more
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