Payroll with temporary disability: finally a simple calculation with examples!

Whether you are an employer or self-employed, the time comes to calculate your payroll and it takes you longer to open the computer than to realize all the incidents that took place during the month.

You break out in a cold sweat and psychologically prepare yourself to spend the day reviewing applicable amounts, base salaries and legal provisions.

Been there, done that! That's why today, Appvizer shares its knowledge on the subject and provides you with timely examples of payroll with temporary disability (TI).

👼🏼 (Celestial music plays in the background).

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Payroll with temporary incapacity (TI)

Let's start by clarifying what situation gives rise to receiving a temporary incapacity benefit.

There are situations in the company that give rise to what is known as sick leave. This consists of a period of time during which the worker is unable to perform his/her duties normally and requires medical care from the Social Security (INSS).

Such sick leave may be due to different reasons or, as it is officially known, to different types of contingencies:

• Common contingencies: corresponds to the case of common illness or non-occupational accident.
• Occupational contingencies: corresponds to the case of occupational disease or accident at work.

Whatever the type of contingency that gave rise to the sick leave, the worker is entitled to receive a benefit, even if it is not the same as the one he/she normally receives.

The amounts, requirements and responsibilities in each case are defined by law and are summarized in the following table:

* As ageneral rule, the regulatory base is obtained by dividing:

The amount of the worker's contribution base in the month prior to the month in which the disability begins, by the number of days to which the contribution refers.(For example, if we are talking about monthly salary, this divisor will be equal to 30. If we are talking about daily salary, we will take into account, for example, that for the case of the month of February, the divisor will be 28).

💡 For the calculation of the regulatory base in a situation of temporary disability due to an accident at work or occupational disease, the following formula is used:

How to make a payroll with sick leave? → Exercise solved

Let's move from theory to practice with the following example of payroll with IT situation.

Steps for calculating the sick leave amount

1. Define the regulatory basis on the basis of which the amount calculations will be made.
2. Take into account the applicable payments for seniority, activity, transport, etc.
3. Calculate the values corresponding to the salary to be received, according to the table of amounts and the percentages that correspond in each case, multiplying the regulatory base by the values obtained in the previous step.
4. Obtain the total benefit, adding the values corresponding to each range of days just calculated.

Let's see it more clearly with a practical example.

Example of temporary incapacity due to common illness

Alicia, a web developer for company X, receives a basic salary equivalent to 1,800 euros. In January, Alicia is on sick leave for 21 days due to a common contingency. What is the salary that Alicia will receive at the end of the month?

Definition of the regulatory base

Assuming that Alicia's contribution base is 1 750 euros, we have the following:

BR = [1 750 euros / 30 days] = 58.33 euros/day

2. Consider the applicable perceptions, as the case may be. As mentioned above, this refers to the additional values for:

• Seniority,
• activity,
• bonus per agreement, transportation
• transportation,
• pro rata overtime (overtime applies to days worked).

3. Calculation of the values to be charged, according to the number of days

Taking into account that:

• Days worked: January 1 to 10 = 10 days worked.
• Days on sick leave: from May 11 to May 31 = 21 days.

We have the following values, according to the number of days of sick leave and the percentages established by law:

• From January 1 to January 10, Alicia receives the usual value she receives when she is not on sick leave; i.e.:

58,33 * 10 = 583,30€

• From January 11 to 13, Alicia does not receive anything because it is the first three days of sick leave.
• For the following 12 days, i.e. from January 14 to 26, Alicia receives 60% of the regulatory base, i.e.:

58,33 * 0,60 *12 = 419,97€

• For the following 5 days, i.e., from January 27 to 31, Alicia also receives 60% of the regulatory base. This time, however, the INSS will be in charge of the payment:

58,33 * 0,60 *5 = 174,99€

4. To obtain the total benefit

583,30 + 419,97 + 174,99 = 1 178,26€

In total, for the month of January, Alicia will receive €1,178.26 instead of the €1,750 she would have received in a month without sick leave.

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To sum up...

• A company's payroll is not invariable. On the contrary, it can vary from month to month, among others, due to temporary incapacity (TI): illness or accident (whether or not due to work).
• The amounts corresponding to the type of contingency that gave rise to the sick leave (common or professional) are defined by law.
• Likewise, the type of contingency and the number of days of sick leave determine the distribution of the payment:
  • Contributions for the company,
  • Social Security contributions.
• When calculating a TI payroll, the following elements must be taken into account:
  • The regulatory basis,
  • the number of days of sick leave,
  • the applicable percentages to be paid in each case.