Understanding Social Security Absence Days Count

Day Counts for Social Security Contribution Base

The system counts Social Security base days for Social Security absences in two segments: healthy days and sick days.

To count the number of healthy days, the system uses the Workdays Counter.

To count the number of sick days, the system uses the Sick Days Counter. The Sick Days Counter determines the sick days by calculating the difference between the days by frequency and the work days. Thus:

The days by frequency are the days considered for contribution purposes depending on whether the count is for employees with a daily salary basis or a monthly salary basis. For employees with a daily salary basis, the system uses the actual number of calendar days in the month. For the employees with the monthly salary basis, the system uses 30 days regardless of the actual number of calendar days in the month.

Day Counts for Social Security Benefits

When counting compensation days for Social Security benefits, the system uses the Benefits Days Counter. In this case, the counter considers natural sick days. It counts the exact number of calendar days, including holidays, vacation days, and weekends.

Day Counts for Company Complementary Benefits

When calculating company complementary benefits, the system uses the Benefits Days Counter. To perform the calculation, the system:

• Calculates the target gross to pay the employee based on the complementary benefits setup data at the labor agreement level.

• Makes an adjustment to avoid paying employee's a higher gross for months with sickness compared to a regular month without absences.

• Makes an adjustment for certain rules to ensure that employees with a monthly salary basis are paid for exactly 30 days when absent the entire month, regardless of the actual calendar days.

• Converts the complementary benefit for day 31 into a negative amount to absorb the Social Security benefit for that day when the employee is on a monthly salary basis.

  Note: The system performs this conversion only if the final complementary benefit is greater than or equal to zero.

• Converts the complementary benefit for day 28 and 29 of February into a positive amount to adjust the Social Security benefit for those days when the employee is paid on a monthly salary basis.

Examples

If an employee with a monthly salary basis starts a common sickness (IT) absence on January 11:

• Days by frequency = 30 (just for being a monthly employee and active the whole month)

• Workdays Counter = 10 (exact number of workdays in that month)

• Sick Days Counter = Days by frequency – Worked days = 30 – 10 = 20

• Benefits Days Counter = Sick days = 21 (exact number of calendar days with sickness, from the 11^th to the 31^st)

If an employee with a daily salary basis starts a common sickness (IT) absence on January 11:

• Days by frequency = 31 (just for being a daily employee and active the whole month)

• Workdays Counter = 10 (exact number of worked days in that month)

• Sick Days Counter = Days by frequency – Worked days = natural sick days = January 11 to January 31 = 21

• Benefits Days Counter = Sick days = 21 (exact number of calendar days with sickness, from the 11^th to the 31^st)

If an employee with a monthly salary basis starts a common sickness (IT) absence on February 11:

• Days by frequency = 30 (just for being a monthly employee and active the whole month)

• Workdays Counter = 10 (exact number of worked days in that month)

• Sick Days Counter = Days by frequency – Worked days = 30 – 10 = 20

• Benefits Days Counter = 18 days (exact number of calendar days with sickness, from the 11^th to the 28^th)

• Complementary Benefits Days = natural sick days + 2 (The system extends complementary benefits 2 more days using the payment percentage assigned to day 28).

If an absence due to sickness starts on the last day of a month with 31 calendar days for an employee with a monthly salary basis:

• Workdays counter = 30 days (the exact working days as healthy days).

• Sick days counter = Days by frequency – Worked days = 30 – 30= 0

• Benefits days counter = 1 day (exact number of calendar days with sickness)

If an absence due to sickness starts the last day of the month with 28 calendar days for an employee with a daily salary basis:

• The system calculates 27 days for the healthy days segment of the employee's Social Security contribution base and 3 days for the sick days segment.

• The system calculates the Social Security Benefit counter as 1 day.

Non Social Security Absences

For Non Social Security absences (strike, leave own matters unpaid or other unpaid absences) or unpaid absences, there will be neither Social Security benefits nor complementary benefits. These days will not be counted. Thus: Number of Workdays = Days by Frequency – Absence Days If there is non social security absences or unpaid absences, use Absence Type: NSS ‘Non Social Security Absence’ and the AUS FM DIAS NSS formula instead of AUS FM DIAS. For example, if an employee strike for one day in the month of January, system will compute 1 day of absence (strike) and 29 working days, so therefore it will pay just 29 days. Adjustment is done in the worked days.