In order to pay for an employee’s sick leave as required by law, an accountant must take into account many factors, including accurately calculating the employee’s length of service. This calculation itself is not as easy as it might seem at first glance. It, like all other sections of accounting, has its own subtleties.
The easiest way to calculate length of service is to use the length of service calculator for sick leave.
What types of experience exist?
An ignorant person may think that there is only one type of work experience - general. This is wrong. In fact, experience is divided into several types:
- Actually the total work experience . Here it is necessary to count all periods of a person’s work, including under contract agreements and employment contracts. It is calculated based on the contracts in hand and entries in the work book;
- Special experience . Here we consider work that was carried out in special conditions (for example, in hazardous industries, in the north, etc.);
- Continuous experience . The main distinguishing feature of this type of work experience is the total period of work in one or several organizations without interruption. However, since 2007 it is not taken into account when calculating payments for temporary disability;
- Insurance experience . It is this type of experience that is taken to calculate sick leave. It includes all periods of work with mandatory insurance transfers, as well as civil service and military service.
Insurance does not mean continuous
The amount of sick leave benefits directly depends on the employee’s insurance experience, the amount of which is determined on the day of the onset of temporary disability (clause 7 of the Rules, approved by order of the Ministry of Health and Social Development dated 02/06/2007 No. 91): percentages on length of service when accruing sick leave depend on how old the person is officially worked (Article 7 of the Federal Law of December 29, 2006 No. 255-FZ).
When assigning benefits for VNIM, the insurance period is understood as the time that the employee (Part 1, 1.1 of Article 16 of the Law of December 29, 2006 No. 255-FZ, clause 2, 2.1 of the Rules, approved by Order of the Ministry of Health and Social Development of the Russian Federation of February 6, 2007 No. 91 ):
- worked under an employment contract;
- was in service (military, civil and other, mentioned in the Law of February 12, 1993 No. 4468-1);
- was engaged in other activities that fall under social insurance in the event of VNiM.
The insurance period is calculated in full years and months and is confirmed by entries in the work book, military ID and other documents (Section II of the Rules, approved by Order of the Ministry of Health and Social Development of Russia dated 02/06/2007 No. 91).
The accumulated experience is used for the purpose of assigning a labor pension.
Calculating length of service for sick leave: main points
As mentioned above, to calculate sick leave payments, you need to take into account only those periods of the employee’s work for which payments were made to the relevant insurance funds. In particular, the periods of work for:
- contract agreements;
- work book;
- employment contracts;
- individual entrepreneurship;
- public service.
In addition, when calculating the insurance period, contract service in the army military service .
An example of calculating length of service (according to a work book):
- We take all periods of work according to labor dates, starting from hiring to dismissal;
- we add them up, counting days, months and years separately;
- Now we need to convert days into months, and months into years.
For example , the amount of insurance experience according to the work book turned out to be 8 years 14 months 35 days. We convert months into years, we get: 1 year and two months, we do the same with days, as a result we have: 1 month 5 days. Now we add everything up and have the following total: 8 years + 1 year 2 months + 1 month 5 days = 9 years 3 months and 5 days.
For your information! There is no need to include time spent studying at a university or other professional educational institutions in the calculation of sick pay.
When calculating length of service, only those periods of work are taken into account when the employer contributed all due payments to extra-budgetary funds for the employee.
Attention! If at the same time an employee worked in two places at once, then to calculate the length of service for sick leave you need to take only one of them.
Why is it important to know the total insurance experience? The fact is that the percentage of payment from the salary of a sick employee directly depends on it.
Insurance experience: What to include and how to calculate
The amount of sick leave that an ill employee can claim depends not only on the employee’s earnings, but also on the length of his insurance coverage. The law says that it must be counted “in calendar order.” What does this mean in practice?
Starting last year, when calculating disability benefits, accountants take into account not the length of service, but the insurance experience of employees. Let us recall that this procedure was established by Federal Law of December 29, 2006 No. 255-FZ. And the Rules for calculating and confirming insurance experience were approved by Order of the Ministry of Health and Social Development of Russia dated February 6, 2007 No. 91. What is included in insurance experience
Insurance experience includes periods of work under an employment contract, time in state civil or municipal service. As well as periods of other activities during which a person was subject to compulsory social insurance in case of illness and in connection with maternity (Article 16 of Law No. 255-FZ). What these periods are is stated in the Rules for calculating and confirming the insurance period. These include, for example, the time during which an individual entrepreneur, private notary, security guard, or lawyer voluntarily paid insurance premiums to the FSS of Russia.
