The basis for the social safety benefits is an crucial issue for both employees and employers. In accordance with Article 36 of the Law on cash benefits from social safety in the event of sickness and maternity (hereinafter: the Benefit Act), the basis for the benefit is the average monthly remuneration paid to the individual for the 12 months preceding the period in which the event occurred (e.g. incapacity to work due to illness or childbirth). If the insurance period is little than 12 months, it shall be determined on the basis of the full calendar months of employment.
Below we supply detailed explanations on how to calculate the basis of the benefit, taking into account different situations and circumstantial rules, and while retaining all legal requirements.
Remuneration and the basis for the contribution
The benefit is based on the remuneration actually paid for the period of employment. It includes remuneration, which is the basis for calculating sickness insurance contributions after deduction of pension, pension and sickness insurance contributions (total of 13.71%).
A ‘period’ remuneration, i.e. for an appropriate number of months (12 or less, shall be accepted as the basis for the benefit.
Time limits for payment and establishment of the benefit base
The time limit for payment of the pension shall be the basis for calculating the contribution. The employer shall pay remuneration for the work at least erstwhile a month, in accordance with Article 85 of the Labour Code (k.p.). Payment of remuneration shall take place no later than the first 10 days of the following calendar month. If the day of payment falls on the day off, the payment should take place on the day before.
Example 1: Payment the following month
An worker employed since 12 February 2024 fell sick in September. The remuneration in the company is paid on the 5th day of each period for the erstwhile month. The average wage for the period from March to August (February is excluded as incomplete month) will be the basis for the September sickness benefit.
Impact of exceeding 30 times the estimated average remuneration
Where the worker’s income exceeds 30 times the estimated average monthly wage in a given calendar year, the remuneration in a given period may be taken into account on the basis of the benefit after deduction of sickness contributions.
Example 2: Over 30 times
The worker became incapable to work in September 2024. The benefit is based on an average monthly wage for the period from September 2023 to August 2024. In December 2023 the employee's income exceeded 30 times the estimated average wage, and in January 2024 the contributions were deducted from the full amount of the salary.
Quarterly premiums and another components
The wage components, specified as bonuses, shall besides be taken into account in the calculation of the benefit, depending on the period for which they are due.
Example 3: Quarterly premium
An worker taking care of a sick kid will receive a care allowance in October. The premium for the 4th fourth of 2023 and the first, second and 3rd 4th of 2024 will be included in the assessment base. Where the 3rd 4th premium has not yet been paid, the erstwhile periods premium shall be accepted.
Contract of contract and basis of payment
The remuneration from the contract may be taken into account in the calculation of the allowance if the contract was concluded with the employer.
Example 4: Contract remuneration
The worker was incapable to work from 26 August to 10 September 2024. From 1 June to 30 September 2024, she had a contract of order. The remuneration for the contract of orders paid for the period June to July 2024 will be included in the benefit base.
Remuneration for incomplete month
In the case of illness or incapacity to work for a incomplete month, peculiar rules shall besides apply.
Example 5: period incomplete
The worker was sick from 6 August to 15 September 2024. Despite the incomplete period of employment, the remuneration from the contract for July was included in the calculation of the benefit.
Minimum remuneration and impact
If an worker additionally performs a contract with a minimum salary, this should besides be taken into account in the calculation of the benefit.
Example 6: Minimum rate
A contract-executor from 1 July to 30 September 2024 was paid at a minimum hourly rate. The payment for the period July-August was taken into account in the calculation of the pension base and after payment of the full amount in October, the allowance was compensated.
Ingredients not paid until the basis is established
If the wage components included in the benefit are due to an worker but have not been paid until the list of benefits has been drawn up, they shall be taken at the amount paid for the erstwhile periods (Article 42(5) of the Act). In the case of payment of the premium after the establishment of the benefit base, it is not essential to recalculate that basis.
Account of remuneration from the order in the basis of the allowance
In the case of employees who are simultaneously contracted to their employer, the income from the contract of the contract shall be taken into account in the calculation of the benefits.
Summary
The establishment of the basis for the assessment of the sickness and maternity allowance must take into account all the components of the remuneration paid to the individual for the applicable periods. Employers should be aware of the deadlines for remuneration payments and the request to include additional contracts, specified as contract contracts, in the calculation of the basic amount of the benefit. Compliance with these requirements allows for the correct determination of the amount of benefit due.
Remember: Setting the basis for the benefit is simply a process requiring precision and knowing of the rules in force. In case of doubt, it is worth consulting the HR department or a lawyer specialising in labour law.
The information on the website is simply a description of the legal position at the date of publication and is not a legal advice on an individual case. The legal position of publication may change. The law firm is not liable for utilizing an alert to solve legal problems.You have questions or request aid – welcome to contactOh, my God!
Legal basis:
• Article 3(3), Article 36, Article 42 of the Act of 25 June 1999 on cash benefits from social safety in the event of sickness and maternity (i.e. OJ of 2023, item 2780)
• Articles 8(1), 2(a), 18(1), 1a of the Act of 13 October 1998 on the social safety strategy (i.e. OJ of 2024 item 497)
• Article 85 of the Law of 26 June 1974. – Labour Code (i.e. diary of Laws of 2023 item 1465; last amended by OJ of 2024 item 878)
Continued here:
Sickness and maternity allowance: How do I calculate the basis for the rate of benefits step by step?
