The company health insurance and the staggered daily allowance
At the time the company was founded, workers’ social insurance in Germany was incredibly bad compared to today’s standards. The working hours were 10 – 12 hours a day, six days a week for an annual salary of 650 German Marks. In case of illness, or even worse, an accident and subsequent invalidity, there was no continuation of payments. Unemployment and pension provisions were not secured by law. This only changed with implementation of the social legislation introduced by Bismarck.
On April 30, 1887 Freytag & Heidschuch oHG founded a company health insurance fund, which from 1900 also remained in force in the subsequent joint-stock company and in which the continuation of payments during illness was regulated. For the assessment of the sick-pay the members of the fund were classified in five categories, whereby the category depended on the salary. Whereas employees of the highest category received a payment of 4.50 Marks per day of illness, an employee of category V only received 2.00 Marks per day.