The Umlage U1 is a statutory compensation procedure for certain employers. It serves to reimburse part of the employer expenses for Continued remuneration in the event of illness. The legal basis is the Act on Equalisation of Employers' Expenses (AAG).
Who takes part in the U1 procedure?
Generally, employers with normally no more than 30 employees according to the statutory criteria take part in the U1 procedure.
Whether an employer participates in the compensation procedure for a calendar year is determined in accordance with the provisions of the Act on the Compensation of Expenses (Aufwendungsausgleichsgesetz). Special statutory counting rules apply to the determination of the number of employees.
What is refunded via U1 levy?
The U1 levy particularly affects employer expenses for statutory Continued remuneration in the event of incapacity for work.
The Act on the Equalisation of Employers' Aufwendungen generally provides for the partial reimbursement of continued remuneration and certain employer contributions attributable to it. The specific amount of reimbursement may depend on the statutes of the responsible Health insurance fund and the selected or applicable reimbursement rate.
How is the U1 levy funded?
The funds for the U1 procedure are raised through contributions from the employers participating in the compensation scheme.
The levy is charged as a percentage of a legally defined remuneration basis. The specific levy rates are determined by the Krankenkassen in accordance with their statutes and may therefore vary.
What role does Health insurance fund play?
The Health insurance fundn carry out the compensation procedure. The employer pays the U1 contribution to the relevant Health insurance fund and, provided the conditions are met, may apply for reimbursement of their expenses.
The reimbursement claim is submitted electronically to the competent Health insurance fund.
U1, U2 and U3 – what is the difference?
The U1 levy is used to compensate for certain employer expenses in the event of illness-related Continued remuneration. The U2 Levy relates, on the other hand, to the reimbursement of certain employer expenses in connection with maternity and employment bans.
The Insolvency benefit surcharge (U3) serves a different purpose: it is used to finance insolvency benefits and is not a reimbursement procedure for Entgeltfortzahlungs expenses.
In short: U1 covers Continued remuneration in the event of illness, U2 certain expenses related to maternity, and U3 the financing of insolvency benefits.
