Sweden Finland Austria

2.2.
The social security elements
Illness
The effects on disposable income from short spells of illness vary to some degree among
the 8 countries. This is mainly because in some countries the employer has a legal obliga-
tion to pay the usual or close to the usual wages during relatively short spells of illness
while this is not the case in other countries. The existence of a waiting period in some of
the countries is also of importance. Labour market agreements to supplement the public
benefits are, however, implemented in most countries with low benefits and/or relatively
long waiting periods. 
Even in countries where the employer has an obligation to pay wages during short spells
of illness (partly or in full), there will be groups who are not eligible for this, and for those
the social security benefits for illness are relevant. The APW-calculations therefore cover
two situations, one where the ill person is eligible only for public social security, and the
other where the ill person receives the usual wage or an usual supplement to the public
social security benefits.
The social security system is important for almost all groups when longer spells of illness
are considered .
2)
In 6 of the countries (Finland and Canada are the exceptions) it is the employer, who
administers the public insurance scheme, at least for shorter spells of illness. The compen-
sation for illness schemes are characterized on basis of these criteria:
Is it usual for the employer to pay wages (partly or in full) for a period?
Is there a waiting period?
For how long can the ill person receive the compensation?
Is the system for all population groups?
Is the benefit ’flat rate’ or is it ’income related’?
The result is contained in table 2.1.

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22
Table 2.1. Characteristics of compensation for illness in 8 countries, 1997.
DK
S
FIN
A
D
NL
GB
CAN
Is it usual for 
the employer
to supplement
the public 
Yes
Yes
Yes
No
Yes
Yes
Yes
No
benefit?
1
)
2)
3)
4)
5)
6)
7)
Waiting period No
Yes
Yes
No
No
Yes
Yes
Yes
2)
1 day
9 week-
2 days
3 days
2 weeks
days
5)
Maximum
52 weeks
No limit
300
64 weeks
78 weeks
52 weeks
28 weeks
15 weeks
benefit period
week-days
(12+52)
Eligible, 
Employees, Employees, Employees, Employees, Employees, Employees, Employees, Employees,
groups
Self-
Self-
Self-
Self-
employed
employed
employed
employed
8)
Benefit 
Income
Income-
Income-
Income-
Income-
Income-
Flat rate
Income-
formula
related, low related
related
related
related
related
related
cap
Special rules
White 
Longer
High 
collar
period with income
workers 
wages for
earners
receive
white 
may leave
wages
collar
the system
1)
From 1994 almost all blue collar workers receive full wages in the first 2 weeks.
2)
From 1992 the employers are obliged to pay benefits (75 per cent of wages for 4 weeks in 1997), and they can
supplement the benefits from the insurance from day 29 to day 90, cf. the comments on the table. From April 1993
there is a waiting period of 1 day.
3)
There are labour market agreements in the private sector covering the income lost during short spells of illness, cf.
also the documentation.
4)
Usual wages are paid for some time, varying according to former work period and position as blue (4-10 weeks) or
white (6-12 weeks) collar employee.
5)
In Germany, the employer has a legal obligation to pay 80% of wages the first 6 weeks (1997), but most labour
contracts still contain full wages for the first 6 weeks.
6)
According to collective labour agreements in the Netherlands, most employees receive full wages when they are ill,
also in the waiting period.
7)
There are supplementary benefits from some large corporations.
8)
Self-employed in GB receive from the Incapacity Benefit scheme.