Sick Pay Formula:
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Sick pay is compensation provided to employees when they are unable to work due to illness. The amount is typically calculated as a percentage of the employee's regular pay.
The calculator uses the simple formula:
Where:
Explanation: The calculation multiplies the employee's gross pay by the sick pay rate to determine the compensation during illness.
Details: Accurate sick pay calculation ensures employees receive proper compensation during illness while helping employers budget for these expenses.
Tips: Enter gross pay in USD and sick rate as a decimal (e.g., 0.8 for 80%). Both values must be valid (gross pay > 0, sick rate between 0-1).
Q1: What's a typical sick pay rate?
A: Rates vary by company and country, but common rates range from 60% to 100% of regular pay.
Q2: Is sick pay taxable?
A: In most jurisdictions, sick pay is taxable income, but local laws may vary.
Q3: How many sick days are typically paid?
A: This varies by employer policy and local labor laws, often ranging from 5-15 paid sick days per year.
Q4: Does this calculator work for hourly employees?
A: Yes, if you calculate their gross pay first (hours worked × hourly rate).
Q5: What if my sick pay rate changes after certain days?
A: This calculator provides a simple calculation. For tiered rates, you would need to calculate each period separately.