Understanding Temporary Disability Pay in Georgia

04/04/2024

Employees who are temporarily unable to work can receive disability pay from the first day they obtain a doctor’s note. Temporary disability pay is capped at 40 calendar days for the entire period an employee is unable to work, or a maximum of 60 calendar days within a 6-month timeframe.

What does this mean?

Let’s consider Elena, who was unable to work due to illness on a Sunday. She visited a doctor and obtained a doctor’s note. While she couldn’t work for a full week, Elena returned to work the following Monday and submitted the note. Although she was sick for seven calendar days, only five of those days were weekdays.

The code says disability pay is based on calendar days. So, shouldn’t Elena get paid for the whole week, even the weekend?

Of course not. The amount of pay is not calculated by calendar days. The calendar days only indicate the period during which we are obliged to pay Elena as much as we would have paid during the period of working capacity.

Even though payment is based on working days, tracking calendar days also serves purposes for both employees and employers.

If disability pay is based on working days, why track calendar days as well?

For Employees: Elena can use calendar days to determine the total allowable absence.

For Employers: Employers can use calendar days to track expected return dates and potential disciplinary action timeframes.

If an employee experiences a long-term incapacity and has already exhausted paid and unpaid leave options, the employer has the right to terminate employment.

How to calculate temporary disability pay

The amount of pay an employee receives for temporary disability leave is determined by three key factors: contractual salary, salary type and the length of employment.

Contract Specifies Salary	Salary Type	Length of Employment	Calculation Method
Yes	Fixed	3 or more month	According to fixed compensation
Yes	Variable	3 or more month	Average salary for the past 3 months
No	Fixed or Variable	3 or more month	Average monthly salary of someone with a similar position and qualifications in the same company

We only consider the employee’s regular salary when calculating the incapacity period payment. This means the following are not included:

Bonuses and Awards
Overtime Pay and Allowances
One-Time Work Compensation
Non-Monetary Benefits

How is the total amount of temporary disability pay determined?

Things are straightforward when dealing with a fixed salary. Employees receive the same amount they would have earned if not incapacitated. The situation becomes more complex if the employee’s salary changes between pay periods. In this case, we would calculate the temporary disability pay based on the old salary for the period before the change and the new salary for the period after the change.

In cases where the salary is variable or not specified in the contract, the situation becomes a little more complicated.

For employees with variable salaries who have been with the company for at least 3 months, temporary disability pay is based on their average daily salary. Here’s how we calculate it:

Total Salary for the Last 3 Months: We add up the employee’s salary for the past three months.
Average Monthly Salary: We then divide the total salary by 3 to find the employee’s average monthly salary.
Number of Working Days: This might differ slightly depending on the specific month. We use the number of working days in the month the employee is unable to work due to disability.
Average Daily Salary: Finally, we divide the average monthly salary (step 2) by the number of working days (step 3) to determine the average daily salary.

Let’s use Elena’s situation to illustrate the calculation of temporary disability pay for someone with a variable salary:

Elena’s Situation: She’s been working at a company for over 3 months and has a variable salary.

Salary Details:

February: 450 GEL
March: 500 GEL
April: 550 GEL

Temporary Disability in May: Elena is unable to work for a day in May.

Step-by-Step Calculation:

Total Salary (Past 3 Months): Add Elena’s salary for the past 3 months (450 GEL + 500 GEL + 550 GEL) = 1500 GEL.
Average Monthly Salary: Divide the total salary by the number of months (1500 GEL / 3 months) = 500 GEL.
Number of Working Days (May): This may vary depending on the specific month. Let’s assume May has 20 working days.
Average Daily Salary: Divide the average monthly salary by the number of working days (500 GEL / 20 working days) = 25 GEL.
Disability Pay Amount: Based on the average daily salary, Elena would receive 25 GEL for the day she was unable to work due to temporary disability.
If Elena had been with the company for less than 3 months, the amount might be based on the average monthly salary of someone with a similar position and qualifications.

Situations When Temporary Disability Pay May Be Denied

Disability During Criminal Activity: If an employee becomes temporarily incapacitated while committing a crime.
Self-Inflicted Injuries: Illnesses or injuries that the employee intentionally caused themselves.
Work Inability Due to Intoxication: If an employee’s temporary disability is a direct result of being under the influence of alcohol, drugs, or other intoxicants.
Non-Compliance with Medical Treatment: Failure to follow the doctor’s prescribed treatment plan.
Court-Ordered Psychiatric Care or Medical Examination: If an employee is undergoing court-mandated inpatient psychiatric care or forensic medical examination.