Social Insurance Contributions for Unpaid or Sick Leave

Different rules apply when an employee is on unpaid leave or sick leave based on the authority that regulates social insurance and the type of leave.

Both unpaid leave and sick leave affect the calculation of social insurance.

• • Unpaid Leave: ADRPBF: Social insurance is calculated and paid in full for both the employee and the employer. The employee pays the employee contributions and the employer pays the employer contributions, but when the employee’s net pay isinsufficient for a full deduction of social insurance the employer pays the missing social insurance contributions on the employee’s behalf.
  • Unpaid Leave: GPSSA AND SSSF: Social insurance is calculated and paid in full for both the employee and the employer. The employee is responsible for paying both the employee and the employer contributions, which can be made in one of three ways:
    • The employee makes the payments directly to the social insurance authority.
    • The authority agrees to treat the amount as a loan that is settled by adding the instalments to the employee contributions whenthey return to work.
    • The employer agrees to pay the contributions and treat the amount as a loan.
  • Sick Leave: ADRPBF, GPSSA AND SSSF: When on sick leave the employee will only pay social insurance contributions on the actual pay that is subject to social insurance for that period, however the employer contributions are based on the amount that should be subject to social insurance for that period, before any deductions for sick leave.