Sick-pay for freelancers
As a freelancer, your sick-pay rights are inferior to those of employees, but you can insure yourself in order to obtain better cover.
Receiving sick-pay as a freelancer
As a freelancer, you can receive 100 percent of the basis for the sick-pay from and including the 17th day of illness. (By comparison, employees receive 100 percent sick-pay cover from the first day of illness). The first 16 days are counted from the day on which you see a doctor or the day on which NAV receives notification of the incapacity.
Calculating the sick-pay basis for freelancers
When NAV pays sick-pay, a basis for the sick-pay must be determined. This is normally calculated based on the average freelance income reported through the a-melding during the three months preceding the sickness.
If you have income as both a freelancer and an employee, the sick-pay will be paid according to the rules for employees.
Voluntary sick-pay insurance for freelancers
It is possible to take out voluntary sick-pay insurance through NAV in order to obtain 100 percent sick-pay cover from the first sick day.
The premium for the sick-pay insurance is 2.8 percent of your expected annual income.
There is also an upper limit for the sick-pay basis of six times the National Insurance basic amount (G) for the voluntary sick-pay insurance. This means you will not be covered by the insurance for income in excess of 6G.
The premium for voluntary sick-pay insurance can be deducted in the tax return.
Applying for sick-pay
Contact NAV for information on how to apply for sick-pay and how it is paid.