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How does a vacation at your own expense affect your pension?

Lawyers note that in wartime, an employee of his own free will can go on vacation without pay. But such a decision will affect future retirement.

In Ukraine, employees during the war period may, in addition to annual leave, ask the employer to grant leave without pay and without limiting the period established by part one of Article 26 of the Law of Ukraine “On Vacation”. Moreover, the employer may agree to issue leave without pay for the entire period of martial law. About it writes in the author’s column Focus Lawyer, Counsel at Ilyashev & Partners Law Firm Valeria Gudiy.

“With unpaid leave (at one’s own expense), one must be extremely careful, especially for an employee, because the amount of the employee’s wages and the monthly payment of insurance premiums affect the employee’s length of service, which is important when assigning a pension. Insurance experience is counted only when insurance premiums are paid.“, the lawyer warned.

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According to her, the main difference between insurance experience and work experience is that the presence of insurance experience is directly related to the payment of insurance premiums for compulsory state pension insurance.

“If an employee wrote an application for leave without pay for a whole month or more (during the period of martial law), such an employee is not paid wages, which means that there is no basis for calculating and paying a single social contribution (insurance contribution) and, as result, the length of service for the corresponding unpaid months is not counted. If an employee falls ill while on leave without pay, the temporary disability benefit is also not provided to such employee.“, – said Valeria Gudiy.

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She believes that it is clear from the existing legislative norms that an employee during a long vacation without pay (more than a month) is less socially protectedand the attention of the employee should be focused on this for the legal certainty of him (her) in his actions to write an application for leave “at his own expense” for a long time.

Previously Focus wrote that an employer can legally refuse an employee a vacationif a person works at a critical infrastructure facility.

As reported in the labor market in June 2022 wage cuts continue and salary offers.

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