When calculating sick leave payments, the size of the insurance experience is of great importance. This indicator determines what kind of sick leave payment the employee will receive, whether he will keep his average earnings for the period of illness.
What does the term "insurance experience" include?
Insurance experience is the period of work of an employee during which the employer paid certain contributions to the Social Insurance Fund for him, based on his salary. It also includes periods when the employee does not work, but according to the law, is subject to compulsory insurance in the FSS. These include the period of disability due to pregnancy and childbirth, caring for a child until he reaches 3 years of age. The length of service currently does not include periods of military service, training in vocational schools, etc. If an entrepreneur also wants to receive cash payments during his illness, he must first conclude a voluntary insurance contract with the FSS and pay contributions to this fund for himself.
If an employee works in a company that conscientiously pays all the required contributions for its employees, it is not difficult to calculate the insurance experience: it will be equal to the length of service indicated in the work book. When an entrepreneur does not properly formalize an employee, he violates the Law, and the employee loses the right to receive insurance benefits under the certificate of incapacity for work.
How do sick leave payments depend on length of service?
Depending on the length of service, the certificate of incapacity for work is paid in different ways:
- with less than 6 months of experience, the calculation is made from the minimum wage;
- if the insurance experience is less than 5 years, the employee is paid 60% of the average wage;
- work experience from five to eight years - 80% of the average salary is paid;
- more than 8 years of experience - the employee receives payments that are comparable in size with the average earnings.
In some cases, the length of service does not affect the amount of insurance payments and the period of incapacity for work or illness is paid in full. Such cases include payments for sick leave for pregnancy and childbirth, when paying for sick leave due to an occupational injury, and in some other cases.
Sick leave insurance benefits are calculated for the last two calendar years. All payments and employee benefits from which income tax was withheld are taken into account. It is necessary to divide the entire amount of payments by 730 (number of days) - you get the average daily earnings. It cannot be lower or higher than the statutory minimum and maximum amount. If the size of the average daily earnings is lower than that established by the Law, the sick leave is calculated from the minimum wage.
Do not forget that the employee has the right to receive payment on the certificate of incapacity for work at the place of previous work, if no more than 2 months have passed from the time of his dismissal to the occurrence of the insured event. The amount of payments in this case will also depend on the insurance experience.
