Accountants Sick Pay Calculator Formula
Learn how the calculator estimates gross contractual sick pay from annual salary, working days, absence, allowance, and employer pay rate.
This calculation provides a simplified gross-pay estimate for a sickness absence. It converts annual salary to a normal daily rate, applies the employer's sick pay percentage to days covered by the allowance, and adds any separately calculated sick pay.
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Total Gross Sick Pay
Where:
The calculation pays the eligible sick days at the employee's estimated daily gross rate and employer sick pay percentage, then adds any separate payment entered.
Variables Explained
| Variable | What It Means | Unit |
|---|---|---|
| annualSalary - Annual gross salary | The employee's annual salary before tax, pension, salary sacrifice, and other deductions. | currency |
| workingDaysPerWeek - Working days per week | The employee's normal contractual working days in a week. | days |
| sickDaysTaken - Sick days taken | Contractual working days missed because of sickness. | days |
| paidSickDayAllowance - Paid sick day allowance | Number of paid sick days available under the relevant policy for the period. | days |
| sickPayPercentage - Employer sick pay rate | Percentage of normal pay payable for covered sick days. | percent |
| otherSickPay - Other sick pay due | A separately calculated amount to add, such as an agreed top-up or another payment. | currency |
Step-by-Step Calculation
Estimate weekly gross pay
Annual salary is spread evenly over 52 weeks to estimate normal weekly gross pay.
weeklyPay = annualSalary / 52
Calculate normal daily gross pay
Weekly pay is divided by the employee's normal contractual working days each week.
dailyPay = weeklyPay / workingDaysPerWeek
Find paid sick days
Only the lower of absence taken and the available paid allowance is covered by this contractual calculation.
paidSickDays = min(sickDaysTaken, paidSickDayAllowance)
Find days outside the allowance
This shows absence days not covered by the entered paid sick-day allowance.
unpaidSickDays = max(sickDaysTaken - paidSickDays, 0)
Calculate contractual sick pay
Covered days are paid at the normal daily rate adjusted for the employer's stated sick pay percentage.
contractualSickPay = paidSickDays * dailyPay * sickPayPercentage / 100
Add other sick pay
Any separately calculated payment entered is added to the contractual sick pay estimate.
grossSickPay = contractualSickPay + otherSickPay
Example: Eight sick days paid at full contractual pay
Weekly gross pay
£52,000 ÷ 52
£1,000.00
Daily gross pay
£1,000.00 ÷ 5
£200.00
Paid sick days
min(8, 10)
8 days
Contractual sick pay
8 × £200.00 × 100 ÷ 100
£1,600.00
Total gross sick pay
£1,600.00 + £0
£1,600.00
Final Result
Estimated total gross sick pay is £1,600.00 before payroll deductions. No sick days are outside the entered allowance.
Assumptions
- ✓Annual salary is allocated evenly across 52 weeks.
- ✓Daily pay is estimated by dividing weekly pay by normal contractual working days per week.
- ✓The entered allowance applies to the sickness period being calculated.
- ✓The employer sick pay percentage applies equally to every paid sick day.
- ✓Any statutory amount, top-up, or other payment is included only when entered as other sick pay.
Limitations
- !The calculation does not determine statutory sick pay eligibility, qualifying days, waiting days, or jurisdiction-specific rules.
- !An employer may use a different daily-rate convention, such as calendar days, annual working days, monthly salary, or payroll-period rates.
- !Contract terms may contain service requirements, linked absence rules, phased pay levels, or occupational schemes not reflected here.
- !The result is gross pay only and does not calculate tax, social security, pension, or other deductions.
Common Mistakes to Avoid
Entering calendar days rather than contractual working days missed.
Using the total annual allowance when part of it has already been used in the relevant policy period.
Entering 1 instead of 100 for a full-pay sick pay rate.
Using take-home pay instead of annual gross salary.
Adding statutory or other payments twice: once in contractual policy inputs and again in other sick pay.
Assuming days outside the entered allowance are automatically unpaid in every circumstance.
Related Formulas
Frequently Asked Questions
How is daily sick pay calculated from annual salary?
The calculator divides annual gross salary by 52 and then divides the weekly amount by normal working days per week.
What is the formula for contractual sick pay?
Contractual sick pay equals paid sick days multiplied by estimated daily gross pay and the employer sick pay percentage.
How are paid sick days worked out?
They are the lower of sick days taken and the paid sick-day allowance entered for the period.
What happens if sick days exceed the allowance?
The excess is shown as days not covered by the allowance. It is not included in contractual sick pay unless a separate amount is entered.
Can the formula include statutory sick pay?
A separately calculated statutory or other amount can be entered as other sick pay, but this calculator does not assess entitlement.
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