Sick leave for self-employed persons and sickness benefits

Sick leave for self-employed persons (SZČO) and sickness benefits is a topic that sole traders only take an interest in once they fall ill – but by then it is usually too late to sort out the conditions of entitlement. Unlike employees, self-employed persons are subject to different rules, and entitlement to sickness benefit depends on paying insurance contributions properly.

When a self-employed person is entitled to sickness benefit

Only a self-employed person who has sickness insurance and pays contributions properly and on time is entitled to sickness benefit. If compulsory insurance has not yet arisen, or if your contribution arrears exceed the threshold tolerated by law, no entitlement to sickness benefit arises, even if your doctor has certified you as unfit for work.

• ongoing sickness insurance of the self-employed person
• contributions paid properly and on time
• no arrears above the tolerated threshold

How sick leave (PN) works for a sole trader

Sick leave is confirmed by a doctor, and the self-employed person notifies the Social Insurance Agency (Sociálna poisťovňa) of it. Unlike employees, whose first days of sick leave are paid for by the employer, sole traders receive sickness benefit directly from the Social Insurance Agency from the day of sick leave laid down by law. That is why it is important to report sick leave without undue delay and to deliver the necessary documents from your doctor to the Agency; otherwise the payment of the benefit will be delayed.

Amount of sickness benefit

The amount of sickness benefit is based on the assessment base from which you paid contributions. The higher the base, the higher the benefit, but only up to the statutory maximum. That is why entrepreneurs who pay only the minimum also receive correspondingly lower benefits – that is the price of lower monthly contributions. It is good to keep this relationship in mind when deciding on the amount of your assessment base, and not only at the moment when you actually need the benefit.

• the benefit is calculated from the daily assessment base
• a maximum daily assessment base applies
• minimum contributions = lower benefit

Contributions during sick leave

During the period in which you are entitled to sickness benefit, the obligation to pay social insurance contributions is suspended. This means that you generally do not pay social insurance contributions for the days of sick leave. Health insurance during sick leave is assessed separately, so check its specific regime for the period concerned separately with your health insurance company.

Practical recommendations

If you run a business and want the security of an income while you are ill, consider a higher assessment base or supplementary commercial insurance. It is important to pay contributions without delay, because even a single late payment can jeopardise your entitlement to benefit at exactly the moment you need it most.

Nursing benefit and other sickness insurance benefits

Sickness insurance for self-employed persons does not cover only conventional sick leave. If the conditions are met, an insured sole trader can also draw nursing benefit when caring for a sick family member, maternity benefit on the birth of a child, or equalisation benefit (vyrovnávacia dávka). What all these benefits have in common is that they require ongoing sickness insurance and contributions paid without delay. That is why it is worth seeing sickness insurance as a comprehensive package of protection, not just as cover in case of illness. Check the specific conditions and the duration of each benefit for the current period, as they are regularly adjusted.

Summary

Sick leave for self-employed persons and sickness benefits depend on whether you have sickness insurance and pay on time. At Bilvao, we keep track of when our clients’ contributions fall due, so that they do not run up arrears that could jeopardise their entitlement to benefits. Check the specific amounts and deadlines for the current period.

Related articles: Contributions on dividends: when health insurance contributions are payable, Unemployment insurance: conditions of entitlement, How the assessment base for contributions is calculated.

Frequently asked questions

Does every sole trader get sickness benefit when on sick leave?

No. Only a self-employed person who has sickness insurance, pays contributions properly and on time and has no arrears above the tolerated threshold is entitled to it. If compulsory insurance has not yet arisen or you have arrears, you may not be granted sickness benefit.

Do I pay social insurance contributions while on sick leave?

During the period in which you are entitled to sickness benefit, the obligation to pay social insurance contributions is generally suspended, so you do not pay social insurance contributions for the days of sick leave. Health insurance during sick leave is assessed separately.