Do Entrepreneurs Have the Right to a Sick Leave and Compensation While Not Working? – Salary Depends on the Number of Employees

Uncertainties about sick leaves and the right to salary compensation are frequent when it comes to entrepreneurs, and the pandemic has further increased these dilemmas. According to the Law on Medical Insurance, entrepreneurs have the right to salary compensation during the time during which they would carry out their activities if they had not been temporarily prevented from working, Nevena Petkovic explains for eKapija on behalf of the Association of Tax Advisers.

– Due to the various potential situations, the entire procedure seems complicated. There are two situations and each entails certain procedures – our interviewee says.

The situation differs depending on whether the entrepreneur is also the sole employee.

In a situation when the entrepreneur temporarily stops the activities, this must be registered at the Business Registers Agency. In this case, the entrepreneur receives compensation of 65% of the defined principal amount.

If the entrepreneur has an employee (one or more), that is, if they hire a manager and organize the continuation of business activities during their absence, they have the right to half of the compensation, that is, 50% of the calculated compensation they would receive if they had temporarily stopped the activities.

– It is important to note that the contributions must be paid regularly in order for the entrepreneur to realize the right to salary compensation during a sick leave – Petkovic adds.

I. Milovanovic

UPSS Udruženje poreskih savetnika Srbije

Agencija za privredne registre

Association of Tax Advisers

Business Registers Agency

Nevena Petkovic

Law on Medical Insurance

entrepreneurs

sick leave

coronavirus

right to a sick leave

compensation during a sick leave

taking a sick leave