Overtime Work and Justified Absences: How to Calculate Sick Leave Compensation
Practical Case
In some companies, operations continue even on official non-working holidays. In the example described, the administrator’s driver replaces the salesperson who is scheduled to have a day off. The standard work schedule includes work from Monday to Saturday, with Sunday as a day off.
In June, the driver had 25 working days scheduled, but actually worked only 9 of them, for which he received 5,400 MDL. From June 12 to August 15, the employee was on sick leave. Between July 1–24, the sick leave was interrupted by annual leave, for which he was paid 12,000 MDL.
On August 16, the employee returned to work:
- he worked 12 days as a driver,
- and on August 27 and August 31 he worked as a salesperson (including on official non-working holidays).
On September 17, 2025, the employee again opens a medical certificate covering the period 17–23.09.2025. It is necessary to determine the amount of compensation for the first 5 calendar days, which are paid by the employer.
Legal Provisions When Annual Leave and Sick Leave Overlap
According to Article 118 of the Labour Code, periods of temporary incapacity for work, maternity leave, and study leave do not reduce the duration of annual leave. If they fully or partially coincide with annual leave, the respective days are postponed or extended upon the employee’s request.
A similar provision appears in Law No. 289/2004, which states that sick leave compensation is granted even when the illness occurs during annual leave, in which case the annual leave is extended accordingly.
Basis for Calculating Sick Leave Compensation
Under Article 7 (15) of Law No. 289/2004, the amount paid by the employer for the initial days of incapacity is calculated based on the employee’s average salary, determined according to Government Decision No. 426/2004.
Point 10 of the decision establishes that the average daily salary is calculated using the income earned during the three calendar months preceding the event.
The calculation includes all permanent forms of income, such as:
- base salary;
- supplements and bonuses;
- night work, overtime, and shift work payments;
- payments for work performed on weekends and public holidays;
- other permanent payments directly related to work.
Excluded from the calculation: payments for annual leave and sick leave.
Income for the Reference Period (June–August)
| Month | Salary | Days Worked | Scheduled Days | Calendar Days |
|---|---|---|---|---|
| June | 5,400 | 9 | 25 | 29* |
| July | 0 | 0 | 27 | 31 |
| August | 9,200 | 14 | 25 | 29* |
| Total | 14,600 | 23 | 77 | 89 |
* official public holidays have been excluded.
Even though the employee had no income in July, this month is not excluded, since the law does not allow replacing months without earnings with other periods.
Calculation of the Average Salary and Compensation Amount
Coefficient (scheduled days / calendar days)
0.8652
Salary per worked day
14,600 / 23 = 634.78 MDL
Average calendar daily salary
634.78 × 0.8652 = 549.21 MDL
Compensation (75% of the average daily amount)
549.21 × 75% = 411.91 MDL
Compensation for 5 days
411.91 × 5 = 2,059.55 MDL
Additional Notes
According to Article 13 (3) of Law No. 289/2004, the employer must pay 75% of the average salary for the first 5 days of temporary incapacity for work.
In this case, the total amount payable for the period 17–23 September 2025 is 2,059.55 MDL.
Public non-working holidays considered in the calculation:
- June 1 — International Children’s Day
- August 27 — Independence Day
- August 31 — National Language Day
