The U2 Levy is a statutory compensation procedure for employers. It serves to reimburse certain employer expenses under the Maternity Protection Act, in particular the allowance for Maternity allowance and the remuneration during employment prohibitions. The legal basis is the Expenditure Compensation Act (AAG).
What is the U2 levy?
Under the U2 procedure, employers are financially relieved of certain expenses incurred due to statutory maternity leave regulations.
The funds required for this are raised through a separate levy on the employers participating in the compensation scheme.
What expenses are reimbursed under U2?
The U2 compensation includes in particular:
- The subsidy paid by the employer towards Maternity allowance
- maternity pay paid during employment prohibitions
- certain employer contributions relating to maternity pay
The Act on Equalisation of Employers' Contributions generally provides for full reimbursement of these employer expenses.
Who takes part in the U2 procedure?
Unlike with the U1 procedure, participation in U2 is generally not limited to employers with a specific maximum number of employees.
This means that larger employers can also be subject to the U2 procedure. Statutorily regulated exceptions remain unaffected.
How is the U2 levy funded?
The funds for the U2 procedure are financed by levy contributions from the participating employers.
The levy is charged as a percentage of a legally defined remuneration basis. The rate of the levy is determined by the respective Health insurance fund in accordance with its articles of association and may therefore vary.
What role does Health insurance fund play?
The Krankenkassen carry out the U2 compensation procedure. The employer pays the levy and can submit an application for reimbursement if there is a reimbursable circumstance.
Refunds are made upon application by the competent Health insurance fund.
U1, U2 and U3 – what is the difference?
The Umlage U1 concerns the compensation of certain employer expenses in the event of illness-related Continued remuneration and applies only to employers who meet the statutory requirements.
The U2 levy affects certain employer expenses under the Maternity Protection Act. The Insolvency benefit surcharge (U3) in turn serves to finance the insolvency benefit.
In short: U1 covers sickness, U2 certain maternity leave expenses, and U3 the financing of insolvency pay.
