• Payroll & HR Highlights - April 2019
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Payroll & HR Highlights - April 2019

18 April 2019

HEALTH INSURANCE LAW

In the Official Gazette of the Republic of Serbia no. 25/2019 of 3 April 2019 a new Law on Health Insurance was published, which enters into force  on 11 April 2019

Insured individulas who begin to use rights deriving from compulsury Health isurance continue to use these rights in accordance with the provisions of the law that was in force until the date the new Law was adopted. Procedures commenced until the date of entry into force of this Law, shall be implemented according to the provisions of the law on which they were initiated.

The new Law on Health Insurance prescribes a new way of determining the basis for calculation of the salary compensation that is paid from the funds of the compulsory health insurance.

According to the new provision of Article 87 of the Law, the basis for the compensation of salaries paid out of compulsory health insurance funds for insured persons referred to in Article 72, item 1) of this Law (this includes employed persons), is an average  gross salary earned by the insured person in the 12 months preceding the month in which a temporary work interruption occurred.

A novelty is that earnings, in the context of paragraph1 of this Article, consist of earnings for the work done and time spent at work, determined in accordance with labor regulations:

Basic earnings of an employee;

part of earnings for working performance ;

Increased earnings.

For the entire period of payment of compensation for earnings from compulsory health insurance, for an insured person who has a previous insurance, the basis for compensation shall be determined in accordance with paragraph 1 of this Article.

For an insured person who does not meet the requirement for the previous insurance at the time when the right to compensation for earnings from compulsory health insurance is used, the basis for the salary compensation shall be determined in accordance with paragraph 1 of this Article from the moment of fulfillment of conditions regarding the previous insurance, as well as earnings referred to in paragraph 2 of this Article.

The basis for the salary compensation for each individual month, which enters into the amount of the average salary referred to in Article 87 of this Law, cannot be higher than the highest monthly base on which the contribution has been paid for the month that enters into the average amount of earnings, in accordance with the law governing contributions for compulsory social security.

The highest basis for compensation of salaries is the average of the highest monthly base on which the contribution is paid for the months entering into the average amount of earnings.

If the insured person who fulfills the condition regarding the previous insurance did not earn a salary in the 12 calendar months preceding the month in which the temporary inability to work occurred, the basis for the compensation of salary is the average amount of the earnings referred to in Article 87, paragraph 2 of this Law, during which time the insured earned a salary, and for months for which he did not earn the salary, the minimum wage for those months, with the limitation of the highest basis for compensation referred to in paragraph 2 of this Article.

If the insured person who fulfills the condition regarding the previous insurance did not earn a salary in any of the 12 calendar months preceding the month in which the temporary inability to work occurred, the basis for the compensation of earnings shall be the minimum wage determined in accordance with the regulations govrening employment, for the month for which the salary compensation is paid.