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New long extends long-term sick threshold from 52 - 78 weeks. Photo: Pixabay.com  

Currently the right to sick pay is limited to 52 weeks over a two-year period, beyond which time the employment contract is automatically terminated. 

The new law seeks to extend this period to 78 weeks where the employer must continue to pay the employee up until the 77th day of sickness, calculated over a period of 12 successive calendar months. 

During this period, the employer is reimbursed up to 80% by the employers’ mutuality (Mutualité des Employeurs) and from the month following the 77th day of sickness over the 12-month reference period, the national health fund (CNS) takes responsibility for paying the employee.

As of 1 January 2019, the reference period for calculating the 77 days of incapacity for work will be increased to 18 successive calendar months. The resulting reduction in employers' contributions will reduce the average employer contribution rate to the mutuality from currently 1.95% to 1.85%.

The “Mutualité des Employeurs”: was created by the law of 13 May 2008 and has been operational since January 1, 2009.

The purpose of the Mutualité is to protect employers against the financial cost of continuing the payment of wages to workers suffering from an incapacity to work over the long-term.