Go to main content

Calculate deductions from sick pay

The sick leave deduction is 20 percent of the sick pay. Read more about how the deduction works.

The sick leave deduction is 20 percent of the sick pay

The sick leave deduction is a one-time deduction based on an average working week. When an employee becomes ill, you as an employer need to ensure that you pay the correct sick pay. The sick pay is 80 percent of the employee's salary and other benefits. A deduction is made from the employee's sick pay.

Film: How the sick leave deduction works

This film explains how the sick leave deduction works. If you are unable to watch the film, check out the examples further down on this page.

For English subtitles, use the settings on the media player and select Captions and then English.

Deduction based on an average work week

The amount off the deduction is based on the average number of hours that the employee works per week.

If an employee has a specific activity level such as full or part-time, proceed from that agreement. If the activity level is irregular, you will need to determine what an average work week would have been.

Same deduction regardless of when the employee becomes ill

The deduction is identical regardless of the day or hour that the employee becomes ill. If the illness starts after half of a work day has passed, 50% of sick pay is deducted. If the employee is still ill the next day, the remainder is deducted until the full amount has been reached.

  • If you have a collective agreement that specifies the calculation, follow those regulations instead.
  • If you have a limited company, you are regarded as an employee and deductions for sick pay will replace the old waiting periods.
  • The change does not affect you if you have a sole proprietorship, partnership or limited partnership.

Example of the deduction