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Major Adjustment to Sick Leave Pay Policy in Shanghai
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(1) |
Within 6 months of continuous leave: sickness leave pay
The salary is calculated at 70% of the actual salary that the employee receives under normal circumstances. |
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(2) |
Continuous leave exceeding six months: Sickness relief funds
The salary is calculated at 70% of the actual salary that the employee receives under normal circumstances. |
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(1) |
Legal minimum standards
According to Article 59 of Ministry of Labor Document [1995] No. 309: During the medical leave period, the sick leave salary shall not be lower than 80% of the local minimum wage standard.
Taking Shanghai as an example, the current monthly minimum wage in Shanghai is 2,740 yuan per month. The legally required monthly minimum sick leave salary: 2,740 × 80% = 2,192 yuan per month. |
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(2) |
Written agreement
Labor contracts, collective contracts, employee handbooks and rules and regulations, etc., can all independently stipulate the proportion and calculation method of sick leave pay. Enterprises can either set sick leave pay benefits higher than the legal minimum standard or implement differentiated calculation ratios, but no agreement can be lower than the national legal standard.
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(3) |
Disposal of existing contracts and new regulations
If the labour contract and employee handbook refer to Document No. 83 of Shanghai Labor and Social Security Bureau [95] and retain the clause for calculating the sick leave benefits based on seniority, the enterprise cannot unilaterally reduce the sick leave benefits of employees merely on the grounds of the abolition of this document.
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(1) |
The enterprise has no valid written agreement
The sick leave pay for the current month should be 2,192 yuan. It is no longer mandatory to pay 100% of the individual's salary in full according to the old regulations. Based on the 2,192 yuan, the enterprise will also withhold the social security and provident fund borne by the employee in accordance with the law.
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(2) |
The system stipulates in writing that sick leave during the medical leave period shall be paid at 70% of the individual's salary 10,000 × 70% = 7,000 yuan 7,000 > 2,192, implemented in accordance with the written agreement of the system. Based on these 7,000 yuan, the enterprise will withhold the employee's personal social security and provident fund according to law. |
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(1) |
If an employee has worked in the current unit for more than 8 years, can their sick leave still be paid in full?
The mandatory provision of the old regulation that full payment should be made after eight years of service has been abolished. Whether the full amount can be issued completely depends on the enterprise's written system and contractual agreement. When there is no agreement, it will be issued according to the legal minimum standard.
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(2) |
Under the new regulations, will sick leave wages be uniformly paid according to the minimum wage standard?
The salary calculation base remains the normal attendance wage of the employee. 80% of the minimum wage is only the final minimum standard for distribution. The two should not be confused.
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(3) |
Will the policies relate to medical leave be abolished along with this adjustment?
This time, only the proportion of sick leave pay is adjusted. The medical leave period and the protection policy that employees cannot be dismissed at will during the medical leave period are completely retained.
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(1) |
Enterprises should revise the employee handbook as soon as possible, improve the salary and wage system, and clarify the latest sick leave rules.
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(2) |
If it is necessary to change the original sick leave benefits, the process of contract modification and democratic revision of rules and regulations should be strictly followed. Records of public announcements and employee signature notification should be kept to avoid arbitration risks.
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(3) |
Strictly adhere to the legal bottom line of sick leave pay and abide by the relevant regulations on the protection of dismissal during medical leave. |
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Disclaimer All information in this article is only for the purpose of information sharing, instead of professional suggestion. Kaizen will not assume any responsibility for loss or damage. |