Freelancers Support in Sickness – The Netherlands’ Broodfonds

Falling ill is so problematic for freelancers that most don’t allow it to happen: studies show that the self-employed take three times fewer days off work for illness than traditional employees.

Broodfonds, where small groups set up their own mutual fund to support each other through sickness.

Being sick means the loss of clients and income, and falling behind on fixed costs like housing and health insurance.

In the Netherlands, self-employed workers have created a system to financially support each other when they fall ill. It is called Broodfonds, “bread funds”, and it works by creating small groups whose participants pay into a mutual sickness fund. The first Broodfond group was founded in 2006, and the scheme has now grown to 123 groups with almost 4,200 participants.

Between 20 and 50 individuals can join each Broodfond group, and beyond that a new group must form. The small number ensures the group remains a close community and reduces the incentive of any member to attempt to cheat.

Each member pays a monthly amount into the system based on how much they wish to receive if they fall ill. There are eight payment levels, starting at €33.75 (£26.40) a month for those who require a payout of €750 a month when ill, ranging to €112.50 a month for those needing a €2,500 monthly payout. If a freelancer gets sick, there is an own-risk period of one month, after which they may receive their monthly support payment from their Broodfond.

Chosen excerpts by Job Market Monitor. Read the whole story at Freelancers unite to get sickness and other employment benefits | Money | The Guardian.