- The medical report payment is split into two parts. The employer pays the first 14 days, and social insurance pays from the 15th day.
- For the first 14 days, the employer pays 80% of the salary, in accordance with Article 130 of the Labor Code.
- As of the 15th day, the amount is 70% of the six-month rolling daily net average when the employee has up to 10 years of service, and 80% when they have more than 10 years.
- Payment extends up to six months in total, including the employer's 14 days.
- The employer always handles the calculation, even for the portion that covers insurance.
The cost of the medical report isn't entirely covered by the employer or by insurance. The split is clear-cut: days 1 through 14 are paid by the company out of its own pocket, days 15 and beyond are covered by social insurance, and the overall limit is six months.
The mistake we encounter most often in small businesses is precisely this separation. The employer thinks the medical report is paid for entirely by insurance and that all he has to do is submit it. In fact, the first 14 days are his expense, and he's the one who calculates the entire period, including the insurance portion.
This guide explains the issue from the employer's perspective. How many days are paid, at what rate, how the amount is calculated with a concrete example, what documents the file must contain, and which mistakes incur fines during an inspection.
Read also: Benefit from medical reports, the same topic viewed from the employee's perspective..
Who pays for the medical report and for how many days?
The medical report fee has two sources and two different calculation rules. The table below sets them side by side.
| Period | Who pays? | How much is it paid? |
|---|---|---|
| Days 1 to 14 | Employer | 80% of the salary |
| From the 15th day, up to 10 years of coverage | Social Insurance | 70% of the net daily average |
| From the 15th day, over 10 years of insurance | Social Insurance | 80% of the net daily average |
| General boundary | Both together | 6 months total |
The employer's obligation for the first 14 days arises from Article 130 of the Labor Code. The insurance component is regulated by Articles 20 through 25 of Law No. 7703 of May 11, 1993, with Article 22 setting the percentages and Article 23 determining the duration. Benefits are paid only to employees.
Be careful with a distinction that is often confused. Common disease and Work accident There are two different schemes, with different documentation and treatment. This guide addresses the disease.
How much does the employer pay?
The calculation basis for the first 14 days is the employee's salary, not the six-month average. The employer determines the daily rate, takes 80% of it, and multiplies it by the number of working days within the reporting period.
The medical report fee can be even higher than that. When an individual or collective contract provides for treatment more favorable than 80%, that treatment applies. Therefore, the first step before any calculation is to read the contract, not open the payroll list.
Example calculated with rounded figures
An employee with a gross monthly salary of 78,000 lek brings in a medical report for 20 days. He has 7 years of insurance. The net daily average of the assessed base for the last six months is 2,500 lek.
- Daily wage, based on the 26-working-days-per-month convention commonly used in payroll: 78,000 / 26 = 3,000 lekë.
- Daily amount paid by the employer: 80% × 3,000 = 2,400 lekë.
- Within the first 14 days, there are 12 working days. Employer cost: 12 × 2,400 = 28,800 lekë.
- From the 15th day to the 20th day, insurance pays. With 7 years of insurance, the rate is 70%, so 70% × 2,500 = 1,750 lekë per day.
- For 5 working days during this period, insurance benefit: 5 × 1,750 = 8,750 lekë.
So, out of the entire 20-day report, 28,800 lek are business costs and 8,750 lek come from insurance. The number of working days within the period varies according to the month's calendar and according to official holidays that fall within it.
What happens from the 15th day?
From the 15th day, the payment is transferred to social insurance, but the administrative work remains with the employer. He fills out the standard short-term benefits payroll form and sends it to the local social insurance agency where he operates. After verification, the agency transfers the amount to the employee's personal account.
What determines whether the norm is 70% or 80%?
Insurance seniority, not seniority with this employer or salary. For up to 10 years of insurance, the rate is 70% of the net daily average of the assessed base over the past six months. Above 10 years of coverage, the rate becomes 80%. This is one of the areas where employers often make mistakes, because they tie the rate to the time the employee has been with their business.
How long does it take to pay for the medical report?
Up to six months in total, including the 14 days paid by the employer. Article 23 of Law No. 7703/1993 provides that this period, in exceptional cases, may be extended by up to three additional months. After this, the case is no longer treated as temporary disability.
During the period of temporary disability, Notice period for termination of the contract is suspended. This means that a notice initiated before the report does not continue to run while the employee is on report.
Documents that should arrive with you
The employee doesn't just submit the report. The following list is what finance needs to have on hand before starting the calculation, and it's worth giving it to the employee on day one.
Documents for payment of the medical report, [employee name], [report period]
1. Original, completed, and sealed medical reports.
2. Photocopy of the identity card.
3. Employment record book or proof of insurance seniority.
4. Form for the last six months' estimated basis.
5. The employee's personal bank account number.
The assessed base form is completed by business finance or printed from e-Albania. All five of these documents are submitted. Employee file and remain there, because they are among the first to be requested during a workplace inspection.
The three mistakes we see most often
The medical report fee almost always breaks down at the same three points. All three cost money or time, and all three can be avoided with a single procedure written into the internal regulations.
- The report is kept in the drawer until the end of the month. When the payroll is closed, the days aren't reported correctly and correcting it requires double the work.
- The company completely withholds pay for reported days off. For the first 14 days, the obligation is the employer's, and failure to comply is a violation of the Labor Code.
- The rate is determined based on years of service with the company. It depends on insurance seniority, which must be proven with a work record book or a certificate, not by the administrator's recollection.
Correct declaration of the period to W-2 statement It is the step where these three mistakes become apparent. Therefore, the final check is always performed before the month closes, not after.
Every time there is a tax or financial change that affects your business, we notify you directly by email with a practical explanation.
Send me free notificationsFrequently asked questions
How many days of medical report does the employer pay for?
The first fourteen days. From the 15th day, payment is transferred to social security, while the employer continues to calculate it.
How is the payment for the medical report for the first 14 days calculated?
The employee's daily wage is taken, its 80% is calculated, and it is multiplied by the working days within the period. If the contract provides for more favorable treatment, the contract applies.
Are weekly rest days also paid for within the reporting period?
The payroll covers workdays. Weekly rest days and Official holidays Within the reporting period, they are not paid as workdays but are counted in the 14-day period.
Can I fire the employee who is on medical leave?
Not during temporary disability. The notice period is suspended for as long as the disability lasts and resumes once it ends.
What happens if the report continues for more than six months?
Six months is the maximum period for temporary disability benefits, with the possibility of an extension of up to three additional months in exceptional cases. After that, the case is no longer treated as temporary disability and moves to a different procedure.
Do the same rules apply to a workplace accident?
No. Workplace accidents and occupational diseases have a separate scheme, with reporting and handling different from that of ordinary illnesses.
Legal basis
- Law No. 7961, dated July 12, 1995, Labor Code of the Republic of Albania, as amended, Article 130 on pay during sickness.
- Law No. 7703, dated May 11, 1993, on Social Security in the Republic of Albania, as amended, Articles 20 through 25. Article 22 on the amount of the benefit, Article 23 on the duration, Article 25 on the first 14 days.
- Regulation No. 37, dated December 23, 2004, of the Social Insurance Institute, on the determination, administration, and payment of short-term benefits.
