Cash benefits for short-term sickness, 1970-94.

This note has reviewed the extent of protection of workers against income loss during the first 6 months of illness or injury. National income loss in 1994 was $81.1 billion, of which $49.4 billion (60.9 percent) was replaced by income-protection programs, including sick leave, group insurance, temporary disability insurance under statutory State provisions, individual insurance, workers' compensation, and (during the 6th month) the Social Security Disability Insurance program. In 1994, wage and salary workers in the private sector lost $55.2 billion because of nonoccupational illnesses or injuries, of which $19.0 billion (34.5 percent) was replaced. Wage replacement rates are higher for full-time professional and technical employees with longevity in large or medium firms, and especially public employees. The lowest level of coverage is given to part-time employees with limited seniority who work in production and related areas in small, private firms. Approximately 70 percent of wage and salary workers in the private sector have some protection through their employment against earnings losses caused by short-term illness. Forty-four percent of these workers have short-term disability insurance,and only half have sick-leave coverage.