The Chamber's proposal to allow additional compensation for pregnant employees was heard

In December of last year, we proposed to the Ministry of Social Affairs and the Ministry of Finance to eliminate the unequal situation where some employees can receive additional sickness benefits from the employer, but this possibility cannot be extended to pregnant employees, because in this case they would lose the right to receive benefits paid by the Health Insurance Fund. Now the Ministry of Social Affairs has considered the Chamber's proposal and added, among other things, provisions to eliminate inequality in the proposed amendment to the Health Insurance Act.

What was the problem?
While the Occupational Health and Safety Act requires employers to pay a non-pregnant employee sickness benefit in the amount of 70 percent of the employee's average salary in case of temporary incapacity for work, then in reality the employer can also compensate the employee for sick days with 100 percent of his/her average salary if he/she wishes. Even in the case when the employer pays 100 percent of the sick day compensation, the employer does not have to pay social tax on this additional compensation, just as it does not have to pay it on mandatory sick days. 

At the same time, there is currently no such additional compensation payment procedure for pregnant employees. If the employer wants to compensate a pregnant employee for her sick days with an additional 30 percent of her average salary, then the pregnant employee loses the right to receive the compensation paid by the Health Insurance Fund derived from the Health Insurance Act. Also, the payment of such compensation would not be exempt from social tax for the employer.

How is the problem solved in the bill?
According to the bill on amending the Health Insurance Act and other related laws, the Ministry of Social Affairs intends to amend the Health Insurance Act so that a pregnant employee does not lose her right to receive the temporary incapacity benefit paid by the Health Insurance Fund if the employer pays her extra sickness benefit.

The Ministry also plans to make two changes to the Social Tax Act in connection with additional compensation for pregnant employees. With the first amendment, the additional sickness benefit paid by the employer to a pregnant employee becomes exempt from social tax, provided that the sickness benefit paid by the Health Insurance Fund and the sickness benefit paid by the employer do not exceed the employee's average salary. With the second amendment, the same social tax exemption is extended to self-employed persons.

When will the changes enter into force?

According to the bill, the changes will enter into force on April 1, 2024.