Financial hardship frequently occurs due to loss of income during sickness

In terms of health care, financial protection addresses both the financial barriers to accessing needed health care and the loss of income during sickness. If absent, financial hardship might occur resulting in impoverishment or deepened poverty.

Minimizing OOP and providing cash sickness benefits and sick leave are crucial to addressing deteriorating health, health-related poverty and loss of productivity. The financing mechanisms for paid sick leave are usually similar to those for health care, involving some form of taxes, i.e. payroll taxes, and contributions shared by employers and employees.

Paid sick leave legislation exists for in 145 countries globally. However, the benefits provided differ widely with regard to definition of work, wages covered, level of income replacement, duration of payments and other specific conditions. Where legislation exists, coverage is provided to formal sector workers and workers in the informal economy are excluded from income replacement during sickness. But also those who have the right to paid sick leave might not take it up, because they fear losing their jobs, particularly in times of economic crisis and/or high unemployment.

Global variations in cash sickness and sick leave benefits

Minimum replacement rates of wages at global level in per cent, 2007