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Insolvenz-Ausfallsgeld-Fonds#

Insolvenz-Ausfallsgeld-Fonds, Insolvency Compensation Fund, 1978 established to protect employees of insolvent companies. The fund takes over the payment of wages and social security contributions for 3 months as soon as insolvency proceedings are instituted. If staff members are dismissed during that time, the fund takes over payments during the period of notice and is also responsible for compensation payments. Contributions to the fund are made by the employers, who at present (1996) pay in 0.7% of the payroll total (up to the maximum basis of contribution). In 1995 contributions amounted to 2.7 billion schillings with another 1.3 billion schillings of refluxes, whereas expenses totalled 7 billion schillings, which had to be covered by credits.

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