Chapter III: Sickness - Cash Benefits

Applicable statutory basis

Beneficiaries

Conditions

Waiting period

Benefits

Taxation and social contributions

Applicable statutory basis

Social Code (Sozialgesetzbuch), Book 4, of 23.12. 1976 and amendments.

Social Code (Sozialgesetzbuch), Book V, introduced by the Health Reform Act (Gesundheits-Reformgesetz) of 20 December 1988 and most recently further developed by the Act to Strengthen the Solidarity of the Statutory Sickness Insurance (GKV-Solidaritätsstärkungsgesetz) of 19 December 1998.

Beneficiaries

1. Field of application

All persons in paid employment and assimilated.

2. Membership ceiling

DEM 76,500 (EUR 39,114) in old Länder and DEM 64,800 (EUR 33,132) in new Länder.

Conditions

Incapacity for work certified by doctor.

No work period nor qualifying period required.

Waiting period

No waiting period if incapacity with entitlement to statutory sick pay under labour law or if sickness is due to a work injury or a professional disease or if hospital treatment is required.

Benefits

1. Duration of benefits

Sickness benefit (Krankengeld) for the same illness, limited to 78 weeks over a 3-year period.

2. Amount of the benefits

Sickness benefit (Krankengeld): 70% of the normal salary but not exceeding 90% of the net salary.

Normal salary: Wages and income from work, normally received (during last 3 months), insofar as subject to contribution. Continued payment of wages and salaries by the employer for 6 weeks. After 1 year adjustment as for pensions.

3. Continuation of payments in case of sickness

Manual and white-collar workers: 6 weeks.

4. Other benefits

Sickness benefit (Krankengeld): Maximum of 10 working days (for single parents, 20 working days) if a child under 12 years is ill and needs supervision, care or assistance of the insured person. However, maximum of 25 working days per year per insured parent (50 days for single parent).

As a transitory measure: death benefit (Sterbegeld) for persons who were insured under the statutoryl sickness insurance on 1 January 1989. Members: DEM 2,100 (EUR 1,074); dependants included on the member's insurance: DEM 1,500 (EUR 767).

Taxation and social contributions

1. Taxation of cash benefits

The continuation of employer's payments is liable to taxation.

Insurance benefits are not liable to taxation (but subject to progression).

Benefits from the long-term care insurance (Pflegeversicherung) are not liable to taxation for those requiring care.

2. Limit of income for tax relief or tax reduction

The minimum income levels (Existenzminimum) are not subject to taxation under any circumstances. The tax-free minimum income levels for 1999 are DEM 13,067 (EUR 6,681) for single adults and DEM 26,135 (EUR 13,363) for married couples.

3. Social security contributions from benefits

Sickness benefit (Krankengeld) :

Contributions to pension (invalidity/old age/survivors) insurance and to unemployment insurance.