When an employee is on a medical report, in principle SGK, not the employer, pays them (temporary incapacity benefit). The employer's job is to report the days not worked correctly and adjust payroll.
Who pays, on what conditions?
| Report type | Payment starts | Premium condition |
|---|---|---|
| Sickness | From day 3 (first 2 days unpaid) | At least 90 days of short-term insurance premiums in the year before the report |
| Work accident and occupational disease | From day 1 | None |
| Maternity | Statutory periods before and after birth | At least 90 days in the year before birth |
Rate: 2/3 of daily earnings for outpatient treatment, 1/2 for inpatient treatment. Daily earnings are calculated from premium-based earnings before the report. SGK pays the employee directly. Sick pay calculator
What the employer does
- Sees the report in the system (e-Report) and files the "notification of not working".
- Reports the days on report in the withholding and premium service return with missing-day code 01 – Sick leave.
- Keeps report documents in the personnel file; since 2018 they are not sent to SGK but produced on request.
If notification is late, the employee's benefit is delayed and an administrative fine may apply.
If the employer pays the first 2 days or the difference
The employer may choose to pay the first two days or the difference between the benefit and the wage. This payment is wages: subject to SGK premiums, income tax and stamp duty. If it becomes a regular practice it becomes a workplace custom and cannot be withdrawn unilaterally.
Working while on report
No benefit arises for a day worked on report; if work prolongs treatment, SGK can recover treatment costs from the employer.
Long absence and the right to terminate
If absence due to sickness or accident exceeds the notice period by 6 weeks, the employer may terminate for just cause:
| Seniority | Notice period | Right to terminate arises after |
|---|---|---|
| Under 6 months | 2 weeks | 8 weeks |
| 6 months – 1.5 years | 4 weeks | 10 weeks |
| 1.5 – 3 years | 6 weeks | 12 weeks |
| Over 3 years | 8 weeks | 14 weeks |
In that case severance is paid, notice pay is not. Exit code: termination by employer for health reasons. Exit codes · Severance calculator
Common mistakes
- Recording days on report as paid leave on payroll.
- Keeping employer top-ups outside premiums and tax.
- Delaying the notification of not working.
- Forgetting to report short (1–2 day) reports as missing days.
Sources
Law No. 5510 arts. 15–18 (temporary incapacity benefit); Social Insurance Procedures Regulation; Labour Law No. 4857 art. 25/I-b; SGK announcements on missing-day documents.