All articles · 2025-07-22 · General
What are your legal rights in case of illness as a self-employed company director?
Falling ill as a self-employed person is annoying enough – but do you know what you legally receive then? Many company directors think they are protected, but…
By Jan Hermans, CEO & founder of Lyff.
The reality of social security for entrepreneurs
As CEO of Lyff., I often see entrepreneurs meticulously arranging their management company (managementvennootschap) financially, but forgetting their personal protection. You must understand that as a self-employed person, you are in a different system than an employee. In case of illness, you are entitled to benefits from the health insurance fund (ziekenfonds), but the amounts are modest. Since 2021, there has been an improvement: the waiting period for an incapacity for work benefit for self-employed persons has been shortened to eight days. If you fall ill for a short period, you bear that risk entirely yourself.
Imagine: Jan, a freelance architect, is out for six weeks due to a severe hernia. He is entitled to a daily allowance (dagvergoeding) that hovers around 70 euros gross, depending on his family situation. This amount often doesn't even cover his fixed private expenses, let alone the ongoing costs in his company. Legal protection is a floor, not a safety net that preserves your standard of living.
Strategic protection via the company
In my book Fiscal Shortcuts for Management Companies (Fiscale Shortcuts voor managementvennootschappen), I explain that you should use the company as a protection machine. The best way to compensate for the legal shortfall is by taking out a guaranteed income insurance (verzekering gewaarborgd inkomen). The company pays the premiums, and these are tax-deductible. This way, you not only protect your salary but also ensure that your pension accrual (pensioenopbouw) through the Individual Pension Undertaking (IPT) can continue thanks to a premium exemption in case of illness.
- Health insurance fund benefits: A flat rate per day from the ninth day of illness.
- Bridging right (Overbruggingsrecht): In case of forced interruption due to illness, you can apply for a temporary benefit under strict conditions.
- Exemption from social contributions: If you cannot pay your contributions due to illness, you can apply for an exemption (vrijstelling) for that quarter, although this does not count towards your pension.
Frequently Asked Questions
When exactly am I entitled to an illness benefit?
You must immediately notify your health insurance fund with a medical certificate. The first seven days of your illness are not reimbursed (the so-called waiting period or carensperiode). From the eighth day, you are entitled to the legal benefit. Please note: you must be in order with your social contributions (sociale bijdragen) to be eligible for this compensation.
Can my company continue to pay my salary if I am ill?
Yes, it can, but this must be contractually stipulated in your management agreement (managementovereenkomst). Without an explicit agreement, the tax authorities (fiscus) can reject the continued payment of salary without performance as a business expense (beroepskost). However, it is much more fiscally efficient to cover this through professional salary optimization (loonoptimalisatie) where an insurer bears the risk instead of your own cash reserves.
Do you want to know more about how to optimally protect yourself and your income within your company? View our services for wealth protection (vermogensbescherming).