Avoid financial risk at the salary – effective protection of compensation offices is a worker due to illness or is an employee on maternity leave, the remuneration costs for the employer. Especially for small and medium-sized enterprises, these costs, for which the employer in return receives no productivity, represent a huge burden. The pay-as-you-go system was created to help the company. It should absorb the not inconsiderable financial burden for expenses the remuneration. The pay-as-you-go system is divided into the procedure U1 (reimbursement procedure when incapacity for work) and U2 (reimbursement procedure for maternity).

An employee fails U1 procedure reimbursement procedure when incapacity for work due to illness, so he is entitled to remuneration after at least four weeks to the period of six weeks. After that, the employee receives generally sick. During the remuneration the remuneration is paid by the employer, that the employee would have the incapacity for work would receive. Once outstanding pay and overtime payments and surcharges and the employer contributions to social security are not included. To the relief of small and medium-sized enterprises with up to 30 employees, these are in principle obliged to participate in a pay-as-you-go system U1.

By paying a monthly fee to the insurance company employer sick leave an employee receives a certain percentage of the wages reimbursed by the health insurance fund. The health insurance companies have typically pricing options, which vary depending on the insurance company. A special rule applies to all slightly employ workers. For them, the U1 procedures will be regardless of what health workers is always insured performed by the mini job centre at the Deutsche Rentenversicherung Knappschaft-Bahn-see. U2 procedure reimbursement for maternity begins six weeks before the mother term of protection for pregnant workers the expected date of birth. After the birth, the protection period is again eight or twelve weeks. During this time the worker receives maternity allowance in the amount of 13 Euro per calendar day from their health insurance company. The employer is also obliged to increase this maternity allowance at the height of the Nettolohns. Even if a certified by the doctor called an employment prohibition is for a pregnant worker, the employer must continue to pay wages. These costs weigh on a company. For this reason, the pay-as-you-go U2 does exist. All companies are required to participate in this procedure independent of the number of employees. This also applies to companies with all-male employees. The employer pays a monthly contribution for each worker and gets reimbursed the expenses for maternity protection in its entirety. Don’t fret about additional costs. See your advantage pay sick pay insurance. It is worth to examine whether the conditions to participate in the remuneration paid insurance are met. Torsten Bogausch Schmidt & Partner GmbH Steuerberatungsgesellschaft branch Weisswasser of Bautzner Strasse 38 02943 Weisswasser Tel.: 03576/2839-0 fax: 03576 / 283930 Internet: sp white water email: