Sick Leave Insurance with or without Scale?

A sickness insurance for the self-employed, all of us who are, know that is essential. The benefits provided by the Social Security are very low in the event of temporary incapacity (although the contributions they charge us are increasingly higher). In this post we talk about whether or not our sick leave insurance (also known as ILT) should have scales.

Benefit in the event of sick leave from Social Security

If all of us who are self-employed and contribute at the minimum rate (or, from 2023, in the lowest contribution base brackets) take sick leave, we are in a very complicated situation. We would be surprised to know how much we will earn while we are on sick leave. With a contribution base of around €1,000 per month, even with earnings of up to €2,500/month, we can understand that the rights we have when we are on sick leave are really reduced.

• The monthly fee is between 230 and 300 €/month.
• For sick leave up to the 20th day, 60% of the contribution base is covered, and from then on 75%. That is, just under 600 euros for the first month, and just over 700 euros for the following months.

In other words, if we are on long-term sick leave, we have a very limited public subsidy which has to be paid monthly, and which needs to be supplemented to make ends meet.

The self-employed «corporate» workers» have a similar situation: a minimum contribution base of 1,000 euros and a contribution of around 310 euros per month.

With or without a scale?

The main purpose of sick leave or self-employed insurance is to supplement this public benefit.

After all, a person who is, for example, in the used to earning 1,500-2,000 euros every month, cannot subsist on 700 euros.

For this purpose, this policy is taken out, with subsidies starting at 900 euros per month, and going up to 10,000 euros per month for the highest incomes.

The question here is which option is best suited to protect the self-employed:

1. Policy WITH scales: in such a way that, depending on the pathology for which the self-employed person takes sick leave, he/she is entitled to X days of compensation.
2. Policy WITHOUT scales: the number of days paid is equal to the amount of time the sick person is on sick leave.

Which ILT insurance option seems best for us?

The truth is that each has its advantages and disadvantages.

• Insurance WITH scales
  1.  It is almost immediately payable: once you know the cause of the sick leave, you know how many days you will be paid.
  2. The self-employed person can register whenever he/she wants, without depending on whether he/she is paid or not, since the payment has already been made (insurance without scales is not like this).
  3. It does not cover possible relapses or complications in the medical process, so you may be uncovered if your sick leave lasts longer than what the company has paid for.
  4. It is usually cheaper than a no-fee policy, precisely because it covers fewer procedures; they tend to pay for fewer days.
• Policy WITHOUT scales
  1. By paying as many days as the time the person is on sick leave, we guarantee that there will be no coverage gap (it is a big risk not to have this).
  2. If the self-employed person wants to return to work, he/she must inform the company, which will stop paying the subsidy.

So it depends on what each person is looking for. For us, PIB Group Iberia, these are the best sick leave insurance.

Don't hesitate, and contact us to enjoy exclusive nationwide rates. The best-priced sick leave insurance for the self-employed.