Staff compensation based on gross salary

Employers’ compensation payments to staff deprived of their income due to injuries at work will henceforth be calculated on the basis of the worker’s gross salary – rather than net income, according to a Supreme Court ruling made public yesterday. The ruling overturns an earlier court decision rejecting an appeal by an unskilled laborer, who was obliged to be absent from work following an accident, for his compensation to be estimated on the basis of his gross rather than net salary. The gross salary according to which such compensation is calculated should include Social Security Foundation (IKA) contributions, the court ruled, noting that the employee would otherwise be obliged to work extra hours in order to bridge the gap in his IKA contributions created during his or her absence.