Sickness benefit allowance

A sick pay supplement is paid by employers to provide financial support to employees who are unable to work due to illness or injury. In Germany, this is an additional benefit to the sickness benefits of statutory health insurance. It is intended that employees continue to receive part of their income during their sick leave by providing the allowance.

How does a sick pay supplement work?

Employers normally pay the sick pay subsidy if they offer their employees company health insurance. The subsidy amount can vary depending on the company and is often set out in the contract. Employees should ask their employer or HR department for the exact terms of the sick pay subsidy.

What is the difference between sick pay and sick pay supplement?

As a rule, sick pay amounts to 70 percent of gross earnings, but no more than 90 percent of net earnings, and is paid by the statutory health insurance fund. During the period of illness, the employer aims to increase the employee's income with the sick pay supplement. Both benefits together are intended to ensure that the employee is financially secure if they are unable to work due to illness.

Legal basis and regulations

In Germany, the supplemental sick pay is not legally required, but is based on individual agreements between employer and employee. It is therefore advisable to check the employment contract or company guidelines to find out whether and to what extent a sick pay supplement is granted. The rules for sick pay allowances may differ in the EU and Switzerland depending on national laws and regulations. It is advisable for employees to find out about the specific regulations in their country.