Compensatory benefit

What it means

The compensatory benefit is a sickness insurance benefit for a pregnant employee, or a mother until the end of the ninth month after giving birth, whom the employer has moved to other, lower-paid work because the original job endangered her health or the child's. The benefit makes up part of the drop in income.

A transfer may be necessary, for example, for work with chemicals, heavy loads, night shifts or work prohibited by rules protecting pregnant women and mothers. If the employee earns less in the new position, the benefit replaces part of the difference.

The benefit is paid by the Social Insurance Agency, not by the employer. Entitlement arises if the employee is covered by sickness insurance and her income after the transfer is lower than before. The amount is a statutory share of the difference between the two incomes.

How it works in practice

The employer must move the employee to other suitable work if her current job endangers her pregnancy or motherhood. For the benefit, it issues a confirmation of the transfer and of income before and after, which the employee submits to the Social Insurance Agency with her application.

If the employer has no other suitable work, the employee may be entitled to time off with wage compensation under the Labour Code. The compensatory benefit therefore applies only where the employee keeps working, but in a lower-paid position.

The compensatory benefit complements other maternity-related benefits such as the pregnancy benefit and the maternity benefit. The payroll accountant should tell the employee about the benefit and prepare the necessary confirmations, since it has to be applied for.

What to watch out for

A transfer must be justified by a real health risk, not by the employer's wish to save money. If the employer moves the employee without reason or in a discriminatory way, it may breach the ban on discrimination and the principle of equal treatment.

Entitlement ends at the end of the ninth month after birth, or earlier if the employee returns to her original job or her income is no longer lower. Changes in job or income must be reported to the Social Insurance Agency promptly to avoid an overpayment.