Short Term Disability

What is Short Term Disability?

Short-term disability refers to a type of insurance or employee benefit that provides income replacement for employees who are unable to work due to a temporary illness, injury, or medical condition. It offers financial support during the period when an employee is unable to perform their job duties due to a covered disability.

Also read: What is Evidence of Insurability (EOI)?

What Qualifies as Short-Term Disability? 

Some companies offer short-term disability benefits to their employees as part of their employee welfare programs. For instance, if an employee falls ill or gets injured outside of work and is unable to perform their job duties for a few weeks, they may be eligible for short-term disability benefits. This could provide them with a portion of their salary during their recovery period, easing financial stress while they are unable to work.

What’s Covered in Short-Term Disability?

Key aspects of short-term disability include:

Coverage Duration: Short-term disability benefits typically cover a limited period, commonly ranging from a few weeks up to six months, depending on the specific policy or the terms of the employer-provided benefit

Income Replacement: Employees who qualify for short-term disability benefits receive a percentage of their regular salary as income replacement during the period they are unable to work due to the covered disability. This percentage varies and is usually outlined in the policy or benefits package

Eligibility Criteria: To qualify for short-term disability benefits, employees may need to meet specific eligibility criteria, such as a waiting period after the onset of the disability or certification by a medical professional confirming the inability to work due to the condition

Employer-Provided or Individual Policy: Short-term disability coverage can be provided by employers as part of their benefits package or acquired individually by employees. Employer-provided plans often have specific terms and conditions, while individual policies offer more flexibility but may require higher premiums.

Short-term disability benefits serve as a crucial safety net, offering financial support to employees during temporary periods of inability to work due to covered medical conditions. Understanding the coverage duration, income replacement percentages, eligibility criteria, and whether the benefit is provided by the employer or acquired individually is essential for employees to maximize these benefits during times of need. Employers must ensure clear communication regarding the availability and terms of short-term disability coverage to support their workforce during unexpected health-related challenges.

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