What length of service is taken into account when calculating sick leave?

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Insurance length is an important indicator that directly affects future payments from the employer. Here you need to know all the information on calculations and the formation of experience.

What is this concept and how does it affect the total amount of payments?

The concept of insurance experience

Federal Law No. 400-FZ “On Insurance Pensions”, adopted on December 28, 2013, introduced the concept of “insurance period”.
From this day on, length of service allowing one to qualify for a pension began to be calculated not in working years, but in insurance years. This change led to a complete redistribution of the calculation of working periods and expanded the range of time periods included in the total length of service. The distinctive feature of the new term is the fact that now the years worked are considered in accordance with the criterion of the presence of insurance contributions to the Social Insurance Fund. Contributions to the social fund must be made by employers for all officially registered employees.

The insurance period has such a wide range of coverage that it includes not only the years actually worked, but also the time when no work was performed and deductions were made. In addition, periods that exclude both the work itself and the presence of deductions are also included in the total amount of length of service. There is an opportunity not to carry out any activity, but to pay contributions, thereby “accumulating” your experience.

Amounts

It is worth noting that in addition to this legal act, periods of employment can be clarified in other legislative norms. Including Federal Law No. 255.

Here is the percentage of benefit payment depending on the duration of work:

1. if the length of service is less than 60 months, then 60% of the average salary;
2. if the experience is from 5 to 8 years, then payment is 80% of the average salary;
3. if the period is longer than the specified period, then the benefit is paid in full.

But there are situations in which sick leave is paid in full. Such situations include maternity benefits.

Is sick leave taken into account when calculating a pension?

The procedure for taking into account periods of incapacity for work when calculating pension payments depends on the duration of work of individuals. So, if a citizen was employed before 2002, when the old pension reform was in effect, then the time of illness will be taken into account in the employee’s total length of service and will affect the calculation of the pension amount.

Since January 2002, certain changes have been made to the legislative act, including those relating to the inclusion of periods of incapacity for work in the insurance period of persons. After these innovations, the amount of old-age compensation payments began to depend solely on the amount of insurance contributions transferred by the employee to the Social Insurance Fund. Only income tax is levied on the cash payment for sick leave; the payment of insurance premiums is not provided; therefore, these periods do not have any impact on the calculation of the pension

Thus, when determining the amount of financial support in old age due to an elderly worker, periods of incapacity for work recorded before 2002 will be taken into account. Further similar periods of time and material compensation paid for them will be excluded from the total length of service affecting the calculation of the pension.

Type of experience

There are several types of experience. And to calculate the amount of payments, it is necessary to clarify exactly what length of service is needed and what differences there are between them.

Total length of service is the sum of all time spent in employment. This also includes labor relations under a contract, a regular employment contract. As a rule, calculation occurs according to the work book.

Continuous length of service is the total amount of time at all enterprises without interruption. Since 2007, this indicator is not taken into account when paying.

Special experience is all work activity associated with special conditions, for example, in hazardous production.

The insurance period is the sum of the entire time for which payments were made to the social fund. This includes military service and civil service. It is this indicator that is used to determine the size of payments.

Insurance experience and work experience, what is the difference?

To begin with, let's define the concept of length of service - this is a period established by law\periods in total value, which give the right to calculations and payments for vacations, sick leave, assignment and payment of pensions and similar benefits.

There are two main differences between insurance and work experience:

Legislative assignment of length of service when receiving any social security: If you have an insurance period, then you have the full right to calculate and pay a pension. If there is a general insurance period, then it will need a legislative assessment of the length of service as such and clarification of the amount of insurance payments.

Carrying out calculations and calculations based on length of service: The insurance period will include all periods both before the approval of the law of December 17, 2001, and after it. The length of service will include periods available as of December 31, 2001, and will not include periods included in the insurance period. Both types of length of service will include periods when you were at the labor exchange and received unemployment benefits. The insurance period includes all your activities as an individual entrepreneur, a member of a farm, etc. How work experience is earned is not taken into account; what is more important is the payment of insurance premiums

Therefore, it is important to control and pay insurance premiums. They are all your social guarantees to the extent required by law.

Who pays

All expenses for sick leave are borne by the Social Insurance Fund, and some are borne by the employer. The latter pays a portion depending on the type of certificate of incapacity for work. If it is an employee’s injury, then the first three days are from the employer’s pocket, the rest is from social insurance. If an employee’s child falls ill, then compensation comes from the Social Insurance Fund in accordance with Article 3 of Federal Law No. 255.

Some situations are not covered. This is regulated by Part 1 of Article 9 of Federal Law No. 255.

This concerns:

1. leaves without pay;
2. in case of illness while on parental leave;
3. in case of illness during study leave.

It is also worth noting that a situation may arise regarding the payment of a minimum benefit calculated from the minimum wage. This concept is regulated by Part 6, Article 7, Article 8 of Federal Law No. 255.

It is noted here:

1. getting injured while under the influence of alcohol or drugs;
2. in case of violation of the corresponding regime;
3. if the experience is no more than six months.

What periods are included in the work experience?

In order to understand whether the vacation period taken for the purpose of restoring health is included in the insurance period of working citizens, you should refer to the provisions of Federal Law No. 400. This legislative act determines that the length of service includes all time intervals during which a person was officially or unofficially employed, provided that employers or he himself made appropriate contributions to the Social Insurance Fund. All other periods are considered uninsured and are accordingly excluded from the length of service. Thus, sick periods are taken into account when calculating the insurance period of citizens, but material compensation for sick leave does not apply to the total earnings of employees.

In addition to periods of incapacity due to illness, the insurance period includes the following time intervals:

• The actual time of fulfillment of labor obligations for the employer, provided that the latter systematically makes appropriate contributions to the Social Insurance Fund;
• Periods of work outside the Russian Federation, provided that the person independently transferred contributions to the Social Security Fund;
• Time of military service in the army;
• The period of maternity leave, as well as leave to care for an infant until he turns three years old. These time intervals are also considered periods of incapacity for work, and the length of service includes 18 months of leave provided for 1 child, and no more than 36 months for all children in total;
• Periods of time when a person was registered with the Employment Center and received certain financial support from the state;
• Carrying out public works for which the person was sent by labor exchange employees;
• The period of time during which a citizen served a sentence in prison, provided that all charges against him were subsequently dropped due to lack of evidence;
• Being with a disabled child, an elderly person or another sick close relative who needs constant care;
• Periods of time when a person was forced to leave for a military spouse at the place of his service, where there was no opportunity to find a job. However, only the first 5 years are included in the length of service;
• Traveling abroad with a consul or diplomat spouse who has been sent there to fulfill work obligations. At the same time, the main condition is the inability to find a job at the place of residence. The insurance period also includes the first 5 years.

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What is not included in the insurance period for sick leave

The insurance period is subject to calculation in accordance with the period of employment.

Citizens who:

1. were injured during criminal activity;
2. when injured while under the influence of alcohol or drugs;
3. if a person does not adhere to the recommendations of medical staff;
4. in case of deliberate deterioration of health;
5. if the person is in custody.

The insurance period cannot be taken into account when:

1. labor activity not specified in the contract;
2. during business, if the person has evaded paying fees to the social fund;
3. during vacation at the applicant's expense.

Sick leave and work experience

Whether sick leave is included in the length of service is stated in Chapter 12 of Law No. FZ-400. Paragraph 2 of the first part mentions receiving compulsory social insurance benefits.

Inclusion of the period of illness in the length of service

According to the law of December 29, 2006 No. 225-FZ, insured events are:

• documented illness or injury;
• pregnancy period, childbirth;
• maternity leave of one of the parents to care for a child up to the age of 1.5 years;
• death of the insured or his family member.

The specified periods are included in the insurance period if they occurred during the validity of the employment contract or within 30 days after dismissal. The employee will need to provide supporting documents. Sick leave is included in the length of service and is evidence of temporary disability.

The influence of length of service on the amount of payments

The amount of sick leave payments depends on the length of the insurance period. When calculating, 30 days are considered a month, and 360 are considered a year. The main criterion is the transfer of a minimum amount to the Pension Fund. If desired, a citizen can pay additional funds independently.

If funds were transferred to the Pension Fund for less than six months, payments are calculated according to the minimum wage indicator.

It is important to know! If a person living in Russia is not covered by the provision on compulsory pension insurance, payments to the fund can be made on a voluntary basis, but they should not amount to more than 50% of the length of service.

Sick leave and pension accrual

A controversial issue is whether sick leave is included in the length of service when calculating a pension. The law states that the period of temporary disability is taken into account. But the certificate does not oblige the employer to contribute funds to the Pension Fund. Because of this factor, the period of illness is not taken into account when calculating payments.

Legislation provides for benefits for old age, disability, and loss of a breadwinner. In each case, the size of the monthly payment depends on the individual pension coefficient. When calculating the value, the number of transfers during the working period is taken into account.

Sick leave is not deducted from the period of work when calculating the number of vacation days. Cash benefits are calculated for the period of performance of duties and absence for valid reasons.

Example

The seller of Premier LLC is on sick leave during the period 03/11/17–03/16/17. The period was 16 days. The disease is common, which indicates that the calculation depends on the length of service. The total working time of an employee according to the work book is 7 years. He can receive compensation in the amount of 80% of average earnings. Accordingly, the calculation period is taken for 2020 and 2020 - 583789 and 545928, respectively.

The calculation looks like this:

1. the sum of all wages for the periods 583789 + 545928 = 1129717;
2. average daily amount 1,129,717/730= 1547.55;
3. average earnings according to length of service 1547.55*80%=1238;
4. amount for payment of benefits from the employer and social insurance 1238*3=3714 and 1238*13=16094;
5. the amount payable for sick leave is 3714+16094=19808 rubles.

The amount to be paid after tax is 17,233 rubles.

Types of experience

Work experience means the entire period of a person’s official work in the Russian Federation.

Insurance length of service refers to periods of work or other activities performed on the territory of the Russian Federation during which the employer made contributions to the Pension Fund for its employee.

Non-insurance period is the time when a person did not actually fulfill his work duties and deductions were not made for him, but this time is still recorded in the length of service. Such periods include periods of illness, military service, caring for a sick relative, and some other situations.

This is important to know: Is sick leave subject to income tax in 2020?

For pregnancy and childbirth

The insurance period for sick leave is the main indicator. It is also taken into account when paying sick leave for pregnancy and childbirth. The period of the certificate of incapacity for work is 140, but it can be extended.

Several points are taken into account here:

1. The certificate of incapacity for work is filled out by the accounting department, this includes the insurance period. Regardless of the duration of the indicator, payment for the slip occurs in the amount of 100% of earnings in accordance with Article 11 of Federal Law No. 255. Two reporting periods are used to calculate payments;
2. The accounting department should also make sure that the employee has not been on leave of the appropriate type during the previous 2 years. If she did not work during this period, then you can write a statement about using it to calculate benefits for the previous period when wages were previously paid. This is regulated by Part 1 of Article 14 of Federal Law No. 255;
3. if the employee does not have insurance experience for previous periods, then the calculation is based on the minimum wage.

How long can sick leave last?

Sometimes extremely unpleasant situations for the employer occur when an employee immediately goes from one sick leave to another. A reasonable question arises: how many people can be on sick leave without violating the Labor Code of the Russian Federation? By law, this period is strictly regulated and is limited to 12 months. However, it should be noted that the attending physician can issue a certificate of incapacity for work only for half a month, a dentist for 10 days, and if the employee is on sick leave for more than 15 days, then its extension is possible only by the decision of a specially convened medical commission.

This is important to know: What taxes are paid on sick leave?

Important! If an employee’s illness or injury occurs while he is at work and performing work tasks, then the duration of sick leave in this case is not limited by law in any way. Such certificates of incapacity for work are paid 100% by the Social Insurance Fund.

As can be seen from the above information, calculating length of service for paying sick leave has its own nuances. To correctly calculate sick leave, only the employee’s insurance record should be taken into account, since it is he who determines the final amount of payment for temporary disability.

Work injury

Work-related injuries can occur in any organization. Here you need to consider the following:

1. if an industrial injury occurs, then an additional report is drawn up in form N-1;
2. payment is made in the amount of 100% of average earnings, regardless of the employee’s length of service. This is regulated by paragraph 1 of Article 9 of Federal Law No. 125;
3. There are no financial restrictions on payments. This is regulated by paragraph 1 of Article 9, Art. 20.1 of a similar legal act;
4. if the employee was not previously employed, then the calculation takes place at 24 times the minimum wage;
5. if a person’s earnings are less than the previously specified indicator, then the benefit is calculated from the maximum value.

Upon dismissal

There are several situations - a citizen fell ill before dismissal or was already officially dismissed, but provided sick leave, opened after dismissal.

Dismissal in the first situation is possible if there is written consent to terminate the employment relationship. On the day of dismissal, sick leave is paid according to the general rule. The issuance of official documents is possible only after submitting a closed certificate of incapacity for work.

The accountant must make sure that the person is not employed anywhere at this moment. Payment is made only to the former employee, and not to his child.

What length of service is taken into account when calculating sick leave?

Work experience plays an important role when applying for labor pension benefits. In addition, it is necessary in case of registration of sick leave. It should be noted that these two cases are not equal, and, accordingly, the calculation of length of service, namely:

• order;
• periods;
• similar details are slightly different.

When assigning benefits in connection with temporary disability, it is important to take into account all these points, as well as correctly calculate the length of service, because the amount of sick leave pay depends on this.