WIA Excess insurance

If your employee ends up in the WIA (Work and Income according to Labour Capacity Act) due to long-term disability, this has a major impact on his income. The employee's income may exceed the WIA wage limit. The WIA wage limit is the maximum amount on which the UWV bases WIA benefits. As an employer, you can take out WIA Excess insurance for your employees. This offers them a financial safety net if the employee becomes disabled and receives WIA benefits. At Alpina.nl we explain all about WIA Excedent insurance.

What exactly is WIA?

WIA stands for Work and Income according to Labour Capacity Act. As soon as your employee has been unfit for work for more than 2 years, he or she enters the WIA. The employer's mandatory continued payment of wages will then stop. He will then receive a WIA benefit from the UWV. There are two types of WIA benefit: the WGA (Work resumption Partially Disabled Persons) and the IVA (Income Support Fully Disabled Persons). The employee receives a WGA benefit if he is more than 35% incapacitated for work or an IVA benefit if he is fully and permanently incapacitated for work.

What is a WIA Excess insurance policy?

A WIA Excess insurance is a supplement to the statutory WIA benefit that your employee receives if he is incapacitated for more than 2 years. This benefit covers the salary up to the excess threshold applicable at that time. Does your employee earn a salary above the WIA salary threshold or €100,000? Then you can take out WIA Excess insurance to cover the loss of income from the amount above the WIA wage limit. A WIA Excess insurance supplements the income above the excess threshold. This is therefore the WIA wage limit or €100,00. The amount of the benefit depends on the degree of disability of your employee.

What is the difference between a WIA Excess insurance and a WGA gap insurance?

There are different types of WIA insurance, including the WIA Excedent insurance and a WGA gap insurance. There is a difference between these two types of insurance. With WIA Excedent it's about the loss of income that occurs when your employee earns a salary that exceeds the WIA wage limit. Without WIA Excess insurance this part of the income is not insured.

There is a WGA gap if the employee receives the WGA continuation benefit and his total income falls below 70% of the annual wage insured for him. A WHA gap means that your employee's income drops significantly, by up to 30% of their former income. To protect your employee against this, as an employer you can take out WGA gap insurance.

What does WIA Excess insurance cost?

The cost of WIA Excess insurance depends on a number of factors, including:

• The type of business you have
• The age of your employees
• Your employees' salaries
• The number of employees who have been disabled before

The cost of WIA Excess insurance is therefore different for each organization. Would you like to take out WIA Excess insurance, but are the costs too high? Then you can also offer the insurance to your employees collectively. They can then decide for themselves whether they want to participate in the insurance or not. You can then choose to withhold (part of) the premium from the employee's salary. Moreover, the premium of a WIA Excess insurance is tax deductible from the income tax.

Why take out WIA Excess insurance?

A WIA Excess insurance is a good supplement to maintain the income of a long-term sick employee. This reduces the risk of financial problems for your employee. With a WIA Excess insurance the salary is supplemented above the WIA wage limit. The amount of the benefit depends on the degree of disability of your employee. That is why WIA Excess insurance is a good secondary employment condition. It allows your employee to take the time to get better (if possible) without worrying about paying the bills. It is often seen as a sign of good employment practices. It also allows you, as an employer, to offer good absenteeism management for your employee who is unable to work.

What are the benefits of WIA Excess insurance?

Taking out WIA Excess insurance has advantages for both the employer and the employee. We have listed the benefits for you below:

• With a WIA Excess insurance you prevent a large decrease in the income of your long-term incapacitated employee.
• The insurer offers help with the reintegration of your employee
• It is a good fringe benefit for your staff
• WIA insurance is often seen as a sign of good employment practices
• The premium of a WIA Excess insurance is tax deductible

Taking out WIA Excess insurance? Request a free, no-obligation quote at Alpina.nl

At Alpina.nl you can request a no-obligation quote for WIA Excedent insurance. Based on a few details about your organization and your staff, we can give you an accurate quote. Do you have any questions about taking out WIA Excess insurance? If so, please be sure to contact us! Our insurance specialists will be happy to help you.