Accountants Sick Pay (Monthly) Formula
Learn how estimated gross monthly pay during sickness is calculated from salary, working days, sick days, waiting days, and an employer sick pay rate.
This calculation estimates an employee's gross pay for one payroll month when sickness absence is paid partly or not at all under an employer policy. It helps accounting and payroll teams separate pay for worked days from employer sick pay for eligible absence days.
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Estimated Gross Monthly Pay During Sickness
Where:
First, divide the normal monthly salary by scheduled working days. Pay worked days at the full daily rate, then pay sick days after any waiting period at the employer sick pay percentage.
Variables Explained
| Variable | What It Means | Unit |
|---|---|---|
| grossMonthlySalary - Gross monthly salary | The employee's usual gross salary for the payroll month before deductions. | currency |
| workingDays - Working days in month | Scheduled working days in the payroll month. | days |
| sickDays - Sick days taken | Working days recorded as sickness absence. | days |
| waitingDays - Unpaid waiting days | Sickness days that do not receive employer sick pay under the selected policy. | days |
| sickPayRate - Employer sick pay rate | Percentage of normal daily pay paid for eligible sick days. | percent |
Step-by-Step Calculation
Calculate normal daily pay
The normal monthly salary is allocated evenly across the scheduled working days entered.
dailyPay = grossMonthlySalary / workingDays
Cap sickness absence at scheduled days
Sickness absence cannot exceed the working days available in the payroll month.
sickDaysApplied = min(sickDays, workingDays)
Find eligible sick pay days
Waiting days are removed first. The result cannot be less than zero.
eligibleSickDays = max(sickDaysApplied - waitingDays, 0)
Calculate worked days
These are the scheduled days that were not recorded as sickness absence.
workedDays = workingDays - sickDaysApplied
Calculate pay for worked days
Worked days are paid at the normal daily rate.
workedPay = dailyPay * workedDays
Calculate employer sick pay
Eligible absence days are paid at the selected percentage of normal daily pay.
sickPayAmount = dailyPay * eligibleSickDays * (sickPayRate / 100)
Combine the two pay amounts
The estimate is the gross pay for worked days plus employer sick pay for eligible sickness days.
monthlyPayDuringSickness = workedPay + sickPayAmount
Example: £4,000 salary with five sick days
Normal daily pay
£4,000 / 22
£181.82 per day
Sick days applied
min(5, 22)
5 days
Eligible sick pay days
max(5 - 3, 0)
2 days
Worked pay
£181.8182 × (22 - 5)
£3,090.91
Employer sick pay
£181.8182 × 2 × 0.60
£218.18
Estimated gross monthly pay
£3,090.91 + £218.18
£3,309.09
Estimated pay reduction
£4,000 - £3,309.09
£690.91
Final Result
Estimated gross monthly pay during sickness: £3,309.09. Estimated employer sick pay: £218.18. Estimated reduction from normal gross pay: £690.91.
Assumptions
- ✓The normal monthly salary is spread evenly across the scheduled working days entered.
- ✓Sick days are capped at the number of working days in the payroll month.
- ✓Waiting days receive no employer sick pay in this estimate.
- ✓The selected employer sick pay rate applies only to days after the waiting period.
- ✓All figures are gross amounts before tax, National Insurance, pension contributions, and other deductions.
Limitations
- !The calculation does not automatically include statutory sick pay or any country-specific entitlement.
- !Employment contracts, payroll policies, and absence rules may use a different daily-rate method.
- !Payroll cut-off dates may mean an absence is processed in a later pay period.
- !The estimate does not include overtime, commission, allowances, salary sacrifice, or other variable pay.
- !Actual payroll rounding methods can cause small differences.
Common Mistakes to Avoid
Entering calendar days rather than scheduled working days.
Counting waiting days as paid sick days.
Using a sick pay percentage as a decimal, such as entering 0.6 instead of 60.
Entering sick days greater than the scheduled working days without checking the absence period.
Treating the gross result as a take-home pay figure.
Assuming employer sick pay includes statutory or other payments automatically.
Related Formulas
Frequently Asked Questions
How is monthly sick pay calculated from salary?
The monthly salary is divided by scheduled working days to get a daily rate. The calculation then adds full pay for worked days and employer sick pay for eligible absence days.
How do waiting days affect sick pay?
Waiting days are deducted from sickness absence before employer sick pay is calculated. If sick days do not exceed waiting days, no employer sick pay is produced by this formula.
What happens if sick days exceed working days in the month?
The formula caps sick days at the number of scheduled working days, so worked days cannot become negative.
Does a 100% employer sick pay rate prevent any reduction?
Not necessarily. A reduction can still occur if there are unpaid waiting days. With no waiting days, all sickness days paid at 100% produce the normal gross monthly salary in this model.
Why is the daily pay rate based on working days?
This calculator uses the scheduled working days entered to allocate monthly salary across the payroll month. An employer may use another contractual approach.
Does this formula include tax and pension deductions?
No. It estimates gross pay only, before deductions and other payroll adjustments.
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