Sweden Finland Austria

’Standard’ income events
1.
Ill for one week. Single APW
The gross wage excl. of C.A. is reduced by 1/52, that is by 1013.77 NLG. Calculated
per day (5 days in a week) the reduction is 202.75NLG. Compensation for illness is
70 per cent of the daily gross wage. There is a waiting period of 2 days. Compensa-
tion for 1 week of illness is 202.75x 3 × 0.7 = 425.78 NLG.
The gross compensation percentage is 425.78 / 1013.77 × 100 = 42. The disposable
income of the APW is 35,005 NLG, when he or she is ill for one week during 1997.
The decrease in disposable income compared to the case with no illness is 35,292 -
35,005 = 287 NLG or 0.8 per cent.
In the Netherlands it is usual that the employer pays full wage during up to 1 year of
illness, also covering the waiting period of 2 days.
2.
Unemployed for 3 months during the year, insured. Single APW
The gross wage excl. of C.A. is reduced by 1/4, that is by 13,179.00 NLG. The
compensation is 70 per cent of the gross wage, that is 9,225 NLG.
The gross compensation percentage is therefore 70. The disposable income of the
APW is 33,123 NLG when he or she is unemployed for 3 months during 1997.
The decrease in disposable income compared to the case with no unemployment is
35,292 - 33,123 = 2,169 NLG or 6.1 per cent.
3.
Unemployed for the whole year, insured. Single APW
There is no gross wage. The compensation is 70 per cent of the lost income, i.e.
36,901 NLG.
The gross compensation percentage is therefore 70. The disposable income is 25,628
NLG, when he or she is unemployed for the whole of 1997.
The decrease in disposable income compared to the situation without unemployment
is 35,292 - 25,628 = 9,664 NLG or 27.4 per cent.
4.
Unemployed for 3 months during the year, not eligible for insurance. 
Single APW
The reduction in gross wage is 13,179.00 NLG as in case 2. The compensation used
here is in the form of social assistance. The rate used is that for a single person (over
23 years old) living alone, that is 16,712 NLG per year incl. holiday pay and after tax
has been paid (the received amount can be looked upon as non-taxable). Social
assistance for 3 months is 4,178 NLG.
The gross compensation percentage is 4,178 / 13,179 × 100 = 32. The disposable
income of the APW is 31,936 NLG when he or she is unemployed for 3 months and
the compensation is social assistance.
The decrease in disposable income compared to the case with no unemployment is
35,292 - 31,936 = 3,356 NLG or 9.5 per cent.

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157
If the compensation alternatively had been that from the 3rd step of the unemploy-
ment insurance system, the rate would have been 70 per cent of the minimum wage
(annual gross rate).