How Average Daily Earnings Are Calculated
Ukraine has introduced clear regulations for determining the average daily wage used to calculate payments related to temporary disability. This methodology defines the calculation period, addresses specifics for employees holding multiple jobs, and outlines which calendar days should be excluded for justified reasons. According to these updated provisions, the average daily wage is computed by dividing the total earnings subject to the single social contribution within the calculation period by the number of calendar days worked.
Details of the Calculation Period
The calculation period covers the last 12 calendar months of employment at the employee's primary workplace preceding the month when the insured event occurs. If the insured individual has worked less than 12 months, the period is adjusted to reflect the actual number of calendar months worked. In cases where employment lasted fewer than a full calendar month, the calculation is based on the exact number of days worked.
For those engaged in multiple jobs, under civil law contracts, or involved in other income-generating activities, average wage calculations are performed separately for each employment. It is important to note that the combined wages from the main job and any additional employment cannot exceed the maximum base limit for the single social contribution.
When calculating the average daily wage, calendar days during which the employee was absent for valid reasons are excluded. These valid reasons include:
- temporary disability;
- maternity and childbirth leave;
- childcare leave until the child reaches 3 or 6 years of age;
- suspension of employment contracts due to Russian military aggression;
- military service without salary retention;
- exemption from paying the single contribution for individual entrepreneurs or self-employed professionals.
These revised rules establish a transparent framework that considers both the duration of employment and the complexities of working multiple jobs. The goal is to ensure fair compensation for individuals during periods of temporary incapacity.
Implementing these new calculation standards marks a significant advancement in protecting workers' social rights, especially amid ongoing economic uncertainty.
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These changes aim to improve financial support for those affected by temporary disability and promote clarity in payment procedures. It is crucial for employers and employees alike to familiarize themselves with these updated regulations to prevent misunderstandings during the disbursement of benefits.