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How is the benefit calculated for employees working at both their primary and secondary workplaces?
How is the benefit calculated for employees working at both their primary and secondary workplaces?
Amendments to Cabinet of Ministers Resolution No. 189 dated September 15, 1998 have clarified the rules for calculating benefits paid under mandatory social insurance.
Economist and tax expert Anar Bayramov explained the criteria for calculating temporary disability benefits for individuals working at both primary and secondary workplaces, as well as those engaged in entrepreneurial activities.
According to Clause 2.11 of the “Rules on the Assignment, Calculation and Payment of Benefits and Social Insurance Payments under Mandatory State Social Insurance,” when an insured person earns income from both a primary and one or more secondary workplaces, the temporary disability benefit for the first 14 calendar days is calculated and paid separately by each employer based on earnings at the respective workplace. For the remaining period, the benefit is calculated and paid by the insurer based on the employee’s total earnings.
The previous version of Resolution No. 189 also provided for separate calculations for the first 14 calendar days. However, the recent amendments have made the mechanism more precise:
For the first 14 calendar days, each employer calculates and pays the benefit separately based on earnings at that workplace;
For periods exceeding 14 days, the calculation is carried out by the State Social Protection Fund based on the employee’s total earnings from all workplaces.
Example 1: An employee works at both a primary and a secondary workplace and becomes temporarily disabled for 20 days. In this case, the benefit for the first 14 days is calculated separately by each employer based on earnings at the respective workplace.
Since the disability period exceeds 14 days, the benefit for the remaining 6 days (20 minus 14) is calculated and paid by the State Social Protection Fund based on the employee’s total earnings from all workplaces.
How is the benefit calculated if the employee is also engaged in individual entrepreneurship?
According to Clause 2.12 of the Rules, if an insured person receives income from non-salaried activities in addition to employment income, the temporary disability benefit is calculated under Clause 2.11. However, for the first 14 calendar days, the benefit is calculated and paid only by the employer at the primary workplace.
As can be seen from this provision, a different approach applies when a person is both an employee and an individual entrepreneur.
During the first stage, covering the first 14 calendar days of temporary disability, the benefit is calculated solely based on the primary workplace and paid by the employer. Income from entrepreneurial activities is not taken into account during this period.
For periods exceeding 14 days, the calculation is made in accordance with Clause 2.11, and the total earnings of the individual may be considered.
Example 2: An employee works at a primary workplace and also provides translation services as an individual entrepreneur. If the employee becomes temporarily disabled for 10 days, the benefit will be calculated and paid only through the primary workplace. If the disability lasts for 20 days, the benefit for the first 14 days will be paid through the primary workplace, while the calculation for the remaining 6 days will be carried out in accordance with Clause 2.11 of the Rules.
Amendments to Cabinet of Ministers Resolution No. 189 dated September 15, 1998 have clarified the rules for calculating benefits paid under mandatory social insurance.
Economist and tax expert Anar Bayramov explained the criteria for calculating temporary disability benefits for individuals working at both primary and secondary workplaces, as well as those engaged in entrepreneurial activities.
According to Clause 2.11 of the “Rules on the Assignment, Calculation and Payment of Benefits and Social Insurance Payments under Mandatory State Social Insurance,” when an insured person earns income from both a primary and one or more secondary workplaces, the temporary disability benefit for the first 14 calendar days is calculated and paid separately by each employer based on earnings at the respective workplace. For the remaining period, the benefit is calculated and paid by the insurer based on the employee’s total earnings.
The previous version of Resolution No. 189 also provided for separate calculations for the first 14 calendar days. However, the recent amendments have made the mechanism more precise:
For the first 14 calendar days, each employer calculates and pays the benefit separately based on earnings at that workplace;
For periods exceeding 14 days, the calculation is carried out by the State Social Protection Fund based on the employee’s total earnings from all workplaces.
Example 1: An employee works at both a primary and a secondary workplace and becomes temporarily disabled for 20 days. In this case, the benefit for the first 14 days is calculated separately by each employer based on earnings at the respective workplace.
Since the disability period exceeds 14 days, the benefit for the remaining 6 days (20 minus 14) is calculated and paid by the State Social Protection Fund based on the employee’s total earnings from all workplaces.
How is the benefit calculated if the employee is also engaged in individual entrepreneurship?
According to Clause 2.12 of the Rules, if an insured person receives income from non-salaried activities in addition to employment income, the temporary disability benefit is calculated under Clause 2.11. However, for the first 14 calendar days, the benefit is calculated and paid only by the employer at the primary workplace.
As can be seen from this provision, a different approach applies when a person is both an employee and an individual entrepreneur.
During the first stage, covering the first 14 calendar days of temporary disability, the benefit is calculated solely based on the primary workplace and paid by the employer. Income from entrepreneurial activities is not taken into account during this period.
For periods exceeding 14 days, the calculation is made in accordance with Clause 2.11, and the total earnings of the individual may be considered.
Example 2: An employee works at a primary workplace and also provides translation services as an individual entrepreneur. If the employee becomes temporarily disabled for 10 days, the benefit will be calculated and paid only through the primary workplace. If the disability lasts for 20 days, the benefit for the first 14 days will be paid through the primary workplace, while the calculation for the remaining 6 days will be carried out in accordance with Clause 2.11 of the Rules.