1. What is Sick Pay?

Sick pay is compensation provided to employees when they are unable to work due to illness. The amount is typically calculated based on their regular pay rate, hours missed, and the company's sick pay policy.

2. How Does the Calculator Work?

The calculator uses the sick pay formula:

Where:

• Regular Pay Rate — Employee's normal hourly wage (USD/hour)
• Hours Sick — Number of work hours missed due to illness
• Sick Pay Rate — Percentage of regular pay provided as sick pay (expressed as decimal)

Explanation: The formula multiplies the employee's normal pay rate by the hours they missed, then applies the sick pay percentage to determine the compensation amount.

3. Importance of Sick Pay Calculation

Details: Accurate sick pay calculation ensures fair compensation for employees while maintaining proper payroll records for employers. It helps in budgeting and compliance with labor laws.

4. Using the Calculator

Tips: Enter the employee's regular hourly pay rate in USD, the number of hours they were sick, and the sick pay rate as a decimal (e.g., 0.8 for 80%). All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is a typical sick pay rate?
A: Rates vary by company and location, but common rates are 60-100% of regular pay.

Q2: Are employers required to provide sick pay?
A: This depends on local labor laws. Some jurisdictions mandate sick pay while others don't.

Q3: How is sick pay different from PTO?
A: Sick pay is specifically for illness, while PTO (Paid Time Off) is general purpose time off that can be used for any reason.

Q4: Should overtime rates be used for sick pay?
A: Typically no, sick pay is based on regular pay rates unless company policy specifies otherwise.

Q5: How to handle partial day absences?
A: Enter the actual hours missed (can be fractions of an hour) for most accurate calculation.