The amount of sickness benefit in the case of an own employee additionally employed under a mandate contract

It is possible that the employer will conclude an additional contract of mandate with an employee employed on the basis of an employment relationship. Then it is worth finding out whether the remuneration obtained on this account should be taken into account when determining the allowance assessment base.

Sickness Benefit Dimension

Art. 36 sec. 1 of the Act of June 25, 1999 on cash benefits from social insurance in the event of sickness and maternity states that the basis of the sickness benefit amount due to an insured employee is the average monthly remuneration paid for the period of 12 calendar months preceding the month in which the inability to work arose . However, if this period is shorter, the calculation basis is the average monthly remuneration for full calendar months of insurance.

The amount of sickness benefit and the employment of your own employee additionally on the basis of a mandate contract

The conclusion of a mandate contract with one's own employee entitles to treat the remuneration on this account as remuneration for work, for the purposes of social insurance. As a result, they can be included in the basis for assessing sickness benefits and allowances, but the condition must be met. The regulations require that the contract of mandate lasts continuously in the months preceding the employee's inability to work and continues during the period of incapacity. The confirmation of the above is Art. 41 sec. 2 of the Act of 25 June 1999 on cash benefits from social insurance in the event of sickness and maternity, which reads as follows:

"Components of remuneration under the employment contract or other act on the basis of which the employment relationship was established, only up to the specified date, are not taken into account when determining the basis of the sickness benefit payable for the period after that date."

It is worth noting that in a situation where a mandate contract is concluded with an employee once a month and covers a period of only a few days, the remuneration on this account cannot be the calculation of the basis for the calculation of benefits.

Example.

The employer concluded a mandate contract with the employee for the period from January 1 to March 31, 2013. The employee acquired the right to sick pay from March 25 to April 5, 2013. The basis for the calculation of the remuneration is as follows:

• from March 25 to March 31 the basis was the average monthly remuneration for the period from March 2012 to February 2013, taking into account the remuneration under the mandate contract obtained from January to February 2013.

• from 1 to 5 April 2013, the basis was the remuneration obtained for the above-mentioned months, but without the remuneration obtained under the mandate contract.