Some time ago I got injured – a severe leg fracture; after two surgeries, I physically cannot work at my main job (a sick leave certificate has been issued).
But at the same time, I can consult by phone or via Zoom, receiving a fee for it and, of course, paying all taxes. If I do this, will it be a violation on my part that would cause me to lose sick pay? And are there any limitations on how much this fee can be?
Marika Zelčāne, senior specialist in the Benefits Methodology Division of the State Social Insurance Agency:
– The purpose of sick pay is to compensate the insured person for lost labor income during a period of temporary incapacity for work. Therefore, sick pay is assigned and paid if a person does not go to work and thus loses income from paid work; or if a self-employed person loses income due to temporary incapacity for work.
Receiving sick pay is incompatible with any paid work or income, including the consultations mentioned by the reader by phone or via Zoom.
Attention: if during the period of incapacity a person received income, then sick pay for that time is not due.
Sick pay for temporary incapacity cannot be received if you are not working for one of the employers due to illness but continue to work and receive income from another employer. Thus, if you perform work duties for another employer, you will lose sick pay.
The law stipulates: a person is obliged to return the sick pay that was paid to them if the VSAA establishes that during the receipt of the benefit, this person had registered income as an employee or self-employed person — accordingly, the benefit was received unjustifiably. In this case, the VSAA makes a decision on the return (recovery) of the overpaid sick pay. The decision is made based on information from the State Revenue Service (SRS) about the periods when the person had registered income.
However, if during the illness the income of the self-employed person from economic activity amounts to less than the established minimum wage in the country (for example, 380 euros), and mandatory state social contributions are paid at a rate of 10% only for pension insurance, then receiving sick pay will not be restricted.
Also, in cases where during the receipt of sick pay the employer pays the employee material support in monetary form according to a collective agreement or employment contract, such as a bonus, allowance, or compensation, these incomes, received not for performing work, will not affect the right to receive sick pay. That is, sick pay will be paid.
Regarding situations where a person simultaneously receives assigned sick pay and royalties, it is important to understand under which of the tax payment regimes the state social insurance contributions are made.
If the economic activity is registered with the SRS and the person pays taxes as a self-employed person under the general regime, then from incomes that do not reach the established minimum wage in the country, mandatory state social contributions are paid at a rate of 10% (that is, only for pension insurance). In this case, it is allowed to simultaneously receive sick pay and a royalty fee.
If the economic activity is not registered and all taxes are paid by the person paying the royalty (special regime for receiving royalties), then state social insurance contributions must be paid in full (31.7%), and the right to receive sick pay will not exist. In this case, the amount of the royalty fee does not matter — sick pay cannot be received even if, for example, the fee is 50 euros.
If sick pay has already been paid, but it is later established that in the same month when this benefit was paid, a royalty fee was also paid, the received sick pay will have to be returned.
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