Group insurance and parental leave

During full-time parental leave, the employment contract is suspended: the employee is no longer required to perform work, the employer is not obligated to provide work, and no salary is due.

Since the employer's contribution to the group insurance is indeed part of the remuneration package, the employer is not required to pay premiums during parental leave. In the case of part-time parental leave, the premium amount must be reduced proportionally to the actual work performed and the salary owed.

An employer who continues to fully pay the group insurance premium during parental leave (or during any form of career break) assumes significant risks. Other employees might demand the same benefit, for instance. If the employer continues to pay the same premium in violation of the rules, it becomes a remuneration benefit subject to both regular social security contributions and payroll tax. A slip must also be prepared for the paid premium; otherwise, its tax deductibility could be jeopardized, and a "special secret commissions tax" might even be imposed.

Furthermore, it is not possible to create an exception to the group insurance plan for employees on career break, as the employment rate is not accepted as an objective criterion for establishing a separate category.

An employer who wishes to maintain partial coverage for an employee on full-time career break could, however, consider granting them an IPT (individual pension commitment). In doing so, strict legal rules must be observed (such as the maximum amount allowed for such a commitment).