How much is the salary while on a sick leave? – Calculation made using example of employee earning 80,000 dinars

How sick pay is calculated and what the amount of the payment depends on are questions that bother many employees, as well as employers. Doubts most often arise about the percentage of payment, the duration of the sick leave, as well as who bears the costs, the employer or the Health Insurance Fund. Particular confusion is also created by the fact that the rules are not the same in all cases, it is different in the case of an injury at work, illness or caring for a child.

Gordana Aritonovic, director of the accounting agency PSK doo, points out that the basis for the calculation is taken from the previous 12 months, while the percentage of payment depends on the reason for the sick leave.

– If the temporary disability is due to pregnancy, an occupational illness or an injury at work, the employee receives 100% of the average salary. The same applies to cases where the employee is an organ donor or when they are absent to care for a child under 18 years of age with a serious illness. In the case of illness or injury outside of work, as well as absence to care for a child older than 3 years or a family member, the percentage drops to 65% – explains Aritonovic.

She adds that the salary compensation cannot be lower than the minimum wage.

– The law clearly stipulates that an employee can never receive less than the legal minimum during sick leave. This means that if the employee’s average salary in the previous 12 months is less than the minimum wage in the month for which the sick leave is calculated, the employer is obliged to pay at least the amount of the minimum wage. In this way, it is ensured that the employee never receives compensation less than the legal minimum during sick leave – says our interviewee.

The costs of the first 30 days of a sick leave are borne by the employer, while longer absences are covered by mandatory health insurance. However, in the case of an injury at work or an occupational disease, the rules are different.

– An exception exists in the case of an occupational disease or injury at work - then the employer is obliged to pay compensation from the first day and for the entire period of temporary incapacity for work. For example, if an employee is absent for 45 days due to a common illness, the employer will bear the costs for the first 30 days, and the remaining 15 days will be borne by the Health Insurance Fund. However, if it is an injury at work, the employer pays for the entire period - all 45 days – says Aritonovic.

If the employee’s employment contract ends while exercising their right to compensation, the mandatory health insurance takes over the obligation to pay from the date of termination of the employment contract.

The laws stipulate that an injury on the way to and from work is also treated as an injury at work.

– However, in practice, uncertainties often arise regarding proving that the injury occurred on the “regular journey,” i.e. whether all legal requirements have been met. This is where controversial situations and additional procedures arise, and even delays in exercising the employee’s rights – she explains.

The method of taxation and calculation of contributions, as she points out, depends on how the employer organizes the payment.

– The first 30 days of a sick leave, which are the employer’s responsibility, are paid regularly, together with other earnings, and are submitted through regular tax returns. When the sick leave lasts longer than 30 days, there are two options. The employer can continue to pay the compensation from its own funds, and then request a refund from the Health Insurance Fund. Another option is for the employer to submit complete documentation to the Health Insurance Fund and wait for the Fund to make a payment for each month separately, and only then calculate and submit the tax return.

In practice, she adds, this second option is administratively more favorable for the employer, but often creates a problem for employees because there are delays.

– Namely, the legal obligation is that earnings, including salary compensation, be paid by the end of the current month for the previous one. However, in some branches of the Health Insurance Fund, such as the one in New Belgrade, the wait for the processing of documentation and payment of funds can be several months. This leads to delays in filing tax returns and, consequently, delays in paying compensation to employees on a sick leave – she says.

How much is the sick leave compensation for an employee with a salary of 80,000 dinars?

As an illustration, she gives the example of an employee with a net salary of 80,000 dinars.

– If they are on a sick leave for two weeks due to illness, they will receive around 67,000 dinars, while a full month of absence will mean a reduction in their salary to just over 51,000 dinars.

So, for half a month of a sick leave, the salary is reduced by around 13,000 dinars, while for a full month it is reduced by almost a third.

– Of course, if the calculation shows that the amount is less than the minimum wage, the employer is obliged to pay the employee at least the minimum wage set by law – reminds Aritonovic.

What will eSick Leave bring?

As our interviewee points out, expectations are high for the eSick Leave system, which she believes should bring faster and more efficient exchange of documentation.

– The biggest obstacle so far has been different interpretations and requirements depending on the branch. If eSick Leave brings standardization and acceleration of the procedure, that will be a significant improvement. But if digitalization turns into additional paperwork, I am afraid that the problems will remain the same, only in electronic form – concludes Gordana Aritonovic.

Ivana Zikic

PSK doo Kraljevo

PSK doo

Gordana Aritonović

sick pay

how much is the sick pay

how sick pay is calculated