Law amendment extends eligibility for partial sickness allowance
Parliament has approved a bill changing the qualifying criteria for the partial sickness allowance and extending the maximum period it can be paid. This amendment of the Health Insurance Act is intended to make it easier to remain employed and return to full-time work. The changes will take effect on 1 January 2023.
Kela can pay a partial sickness allowance to persons who are disabled but are able to perform some of their job tasks without endangering their health and recovery.
Maximum period of payment extended to 150 working days
The amendment extends the maximum payment period for the partial sickness allowance from 120 to 150 working days.
The extension makes it easier to return to full-time work for persons whom the current maximum payment period does not allow enough time to recover.
The amended law will apply to cases where the current maximum payment period of 120 working days was not reached before 1 January 2023.
New definition of full-time work
The definition of full-time work under the partial sickness allowance scheme will change with the result that full-time work will principally mean work with a regular working time of at least 30 hours a week.
Following the amendment, partial sickness allowance can also be paid to employees whose agreed working time does not comply with the regular working time provisions agreed in collective agreements or the regular working time defined in the Working Time Act. The amendment will improve their prospects for remaining in work and returning to full-time work after a sickness absence.
The new definition of full-time work will be applied to cases where a person starts part-time work on or after 1 January 2023.
Part-time work can count towards the waiting period
Until now, eligibility for partial sickness allowance has required the recipient to first stay off work while completing a waiting period for the sickness allowance before starting part-time work. Under the amendment, it will be possible to work on a part-time basis and continue to complete the waiting period.
Starting part-time work immediately after disability has been recognised is possible only if agreed by the employer and the employee and if the part-time work does not pose a risk to the employee’s health and recovery process.
Among those who could benefit from the possibility to start part-time work during the waiting period are persons whose work capacity has been impaired for a lengthy period of time and who have taken several brief sickness absences from their work.
This provision of the Health Insurance Act will apply to part-time work that begins on or after 1 January 2023.
Employees will continue to be on full leave from work due to disability and to receive sick pay and sickness allowance after completing a waiting period.
The law amendments are awaiting confirmation by the President.