What is labor, insurance and non-insurance experience?
Many people have come across the concepts of work experience and insurance experience, but not everyone understands what their differences are.
Work experience is the entire period of a person’s work, including the performance of work under contract agreements. In addition, it can also be attributed to pension terminology, since length of service is used when calculating the pension of citizens who worked before January 2002, that is, before the start of the pension reform.
Insurance experience (SS) is those periods of a citizen’s work during which the employer paid insurance contributions to the Pension Fund of the Russian Federation and the Social Insurance Fund for him.
However, there are days when a person does not work, but the work experience still goes on:
- Upon the occurrence of incapacity for work, including maternity leave (Maternity leave), caring for a child under 1.5 years old, a disabled family member or an elderly relative (80 years and older).
- During military service upon conscription.
Find out the specifics of calculating length of service during military service in the material “Is military service included in length of service (nuances)?” .
3. When performing state or civil service, etc. (everything that is listed in the law of February 12, 1993 No. 4468-I).
All of the above cases relate to non-insurance period, that is, to periods when insurance premiums were not paid for a citizen.
An example of calculating length of service for sick leave
Sample calculation algorithm:
- 02.02.12 – 01.02.14: activity as an individual entrepreneur;
- 03/02/14 – 03/01/15: military service;
- 06/01/15 – 06/01/18: work activity.
The total number of years is calculated in two stages.
- 730 days (IP) + 364 days (military service) + 1,096 days (work) = 2,190 days.
- 2,190 / 30 / 12 = 6 years 1 month.
In case of illness from the calculated length of service, compensation will be paid in the amount of 80% of the average daily income.
What length of service is taken into account when calculating benefits in 2021 and how to calculate it
It is very important to correctly calculate the length of service to calculate disability benefits, since an error even on one day will give the Social Insurance Fund inspectors reason to recalculate the entire amount of sick leave.
For sick leave, the SS is taken into account, including all non-insurance periods. SS calculation is carried out in calendar order. All partial work periods are converted to full months and years in the following order: 30 days are counted as a full month, and 12 months are converted to a full year.
How to calculate the insurance period in partial months, we described here.
What periods of work (other activities) are included in the insurance period when assigning benefits for temporary disability, pregnancy and childbirth is described in detail in ConsultantPlus. Get a free trial and get started with expert guidance.
Moreover, if a person worked in different organizations at the same time, then one of the periods of the employee’s choice is taken into account. This choice must be supported by a statement from the employee.
NOTE! When calculating length of service for sick leave, all insurance periods are taken into account, regardless of work interruptions.
Let's consider the algorithm for calculating the CC using an example.
Example:
Efimova A. Yu. On 02/20/2021 she submitted to the accounting department of Versailles LLC a sick leave certificate for 14 days of incapacity for work (from 02/06/2020 to 02/19/20XX). The period of work in this company is 1 year 8 months. and 5 days.
The work book contains the following entries:
07/17/2018 to 03/31/2019 - Garant LLC;
01/15/2017 to 07/16/2018 - Azimuth LLC.
Let's calculate the total SS.
The insurance experience at Azimut LLC was 1 year 6 months. (from 01/15/2017 to 01/15/2018 - 1 year and from 01/16/2018 to 07/16/2018 - 6 months).
At Garant LLC, the insurance period was 8 months 15 days (from 07/17/2017 to 03/17/2018 - 8 months and from 03/18/2018 to 03/31/2018 - 14 days).
The 2 months when A.Yu. Efimova was unemployed are not included in the insurance period (period from 04/01/2019 to 05/31/2019).
Now we add up the obtained indicators: 1 year 6 months. + 8 months 14 days + 1 year 8 months. 5 days = 2 years 22 months. 19 days.
22 months convert to full years, that is, it is 1 year 10 months.
2 years 19 days + 1 year 10 months. = 3 years 10 months 19 days.
19 days are less than 30 and are not counted as a full month, so the SS is not included in the calculation.
Thus, the SS is equal to 3 years 10 months.
How to determine and confirm insurance experience?
Federal Law No. 255-FZ [1] changed the procedure for paying sick leave. From January 1, 2007, to determine the amount of benefits, information about the employee’s insurance record is required. The rules for calculating and confirming it for determining the amount of benefits for temporary disability, pregnancy and childbirth (hereinafter referred to as the Rules ) were approved by Order of the Ministry of Health and Social Development of the Russian Federation dated 02/06/2007 No. 91 (registered with the Ministry of Justice of the Russian Federation on 03/14/2007 No. 9103).
T. K. Yulina, expert of the magazine “Topical Issues of Accounting and Taxation” What do accountants and HR employees of an enterprise need to know about the new document? A detailed commentary on the new Rules is in this article. Study the biography of employees!
At first glance, such a call may seem strange to an accountant and personnel officer. However, the new Rules provide for exactly this. Judge for yourself. In accordance with clause 2 of the Rules, the insurance period for determining the amount of benefits for temporary disability, pregnancy and childbirth includes the following periods:
