How to calculate sick pay?

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As a rule, a person employed under an employment contract is entitled to sick pay or sickness benefit for the period of incapacity for work. Sick pay is calculated according to the rules for determining the basis for the sickness benefit calculation. The period of receiving remuneration and sickness benefit is limited. How to correctly calculate sick pay? Let's check.

What is the sick pay period?

For the period of inability to work due to illness or isolation due to an infectious disease, which lasts up to 33 days in total during a calendar year, and in the case of an employee who has reached 50 years of age, which lasts up to 14 days in total during a calendar year, the employee is entitled to receive 80% of the salary. The remuneration for this period is financed from the employer's funds, if the internal labor law provisions do not provide for a higher amount of sick pay. Sick pay in the higher amount - 100% - is due for the period of incapacity for work caused by:

  • an accident on the road or from work,
  • illness during pregnancy,
  • undergoing the necessary medical examinations provided for candidates for donors of cells, tissues and organs, and undergoing the procedure of taking cells of tissues and organs.

The 14-day sick pay period applies to incapacity for work after the calendar year in which the employee reaches the age of 50.

The employee acquires the right to sick pay after the expiry of the so-called the waiting period, i.e. 30 days of uninterrupted compulsory sickness insurance. The previous periods of sickness insurance are also included in the waiting period, if the interval between them did not exceed 30 days.

After exceeding the period of payment of sick pay from the employer's funds, from the 34th or 15th day of incapacity for work, the employee is entitled to a sickness benefit financed by the Social Insurance Institution. If the contribution payer (employer) is not entitled to the payment of benefits, he is obliged to submit the original sick leave to ZUS along with the completed Z-3 certificate.

Sick pay is payable for each day of incapacity for work, including non-working days. It is also not reduced if the basis for the calculation of sickness benefit is reduced and it is not payable if the employee has not acquired the right to it. Start a free 30-day trial period with no strings attached!

What is included in the basis of the sickness payroll assessment?

The basis for the calculation of sickness remuneration (as well as the sickness benefit) is the average monthly remuneration paid during the 12 calendar months preceding the month in which the incapacity for work arose. The basis for assessing sickness remuneration includes, as a rule, all components that form the basis of the assessment of sickness insurance contributions, i.e. primarily:

  • basic salary,
  • bonuses and rewards based on individual performance,
  • functional and internship allowances,
  • remuneration for overtime and night hours,
  • holiday pay.
If the incapacity for work arose before the expiry of 12 months, the basis for the calculation of sickness remuneration is the average monthly salary for the full months of insurance.

The basis for assessing sick pay should exclude components independent of the employee's assessment, which the employee receives despite being unable to work. These include:

  • awards for graduation from school / studies by an employee,
  • the cost of renting an apartment by an employee financed by the employer,
  • vouchers or cash payments granted in the same amount or in accordance with a predetermined percentage to all employees or groups of employees on the occasion of holidays or other circumstances,
  • awards on the occasion of the employee's wedding or the employee's birth.

The basis for the calculation of sickness remuneration are also not components independent of the individual contribution of work, but dependent on the results of the work of the team of employees, which are paid despite the employee's inability to work. The basis for sick pay does not include components whose payment has been discontinued and the employee is not entitled to them at the time of payment of the sickness benefit. If, in the period from which the basis is calculated or in the month of illness, the employee has changed the working time, the basis for the sickness remuneration shall be the remuneration established for the new working time.

All components excluded from the basis of sick pay during the employment relationship, after the end of the employment contract, will be included in the basis of assessment. Therefore, when completing the ZUS Z-3 certificate after termination of employment, the employer is required to show all remuneration components.

Components for monthly periods are included in the assessment base in the amount paid to the employee for a given month. On the other hand, in the case of components for quarterly and annual periods, the sickness base includes the amount of 1/12 of the bonus paid for the last four quarters, and in the case of an annual bonus, it should be included in the calculation base of 1/12 of the amount of the bonus paid for the previous year. . The basis for the sickness benefit is determined by the remuneration obtained by the employee for the specific months preceding the incapacity for work, regardless of when it was paid. Please note that only the ingredients reduced for the period of illness are included in the basis of sick pay.

Sick pay - how to calculate?

The employer's deducted contributions for retirement, disability and sickness insurance, i.e. the sum of the percentage of the above contributions (13.71%) should be deducted from the salary which is the basis for the calculation of contributions for sickness insurance. For one day of incapacity for work, an employee is entitled to 1/30 of the basis for sick pay.

The remuneration for the part of the month worked is determined by dividing the base salary by 30 (regardless of the actual number of calendar days in a given month), and then this value should be multiplied by the number of calendar days of sick leave. The obtained result should be subtracted from the base salary. The amount calculated in this way is the employee's remuneration for the part of the month worked.

Example 1.

Calculation of the sick pay of an employee employed on the basis of an employment relationship with a gross monthly salary of PLN 3,200. The sick leave is valid for 8 days. The employee is entitled to 80% of the sick pay.

Basis for the calculation of sick pay:

PLN 3,200 - 13.71% = PLN 3,200 - PLN 438.72 = PLN 2,761.28

Daily sick pay amount in the amount of 80%:

PLN 2,761.28: 30 = PLN 92.04

PLN 92.04 x 80% = PLN 73.63

The amount of sick pay for the period of 8 days of incapacity for work:

PLN 73.63 x 8 = PLN 589.04

An employee for 8 days on sick leave will receive a sick pay in the amount of PLN 589.04.

Example 2.

The employee was employed on July 1, 2019 on the basis of an employment contract for the amount of PLN 3,000 gross per month. From February 16, 2020, he is on sick leave for 12 days. For 3 months, in addition to the basic salary, he received a discretionary bonus: in September - PLN 400 gross, in October - PLN 450 gross, and in November - PLN 600 gross.

The basis for sick pay will be the average salary for a period of seven full months of employment from July to January, less the amount of social security contributions deducted by the employer in the amount of 13.71%.

Average monthly salary for the period of seven months:

3000 PLN x 7 + 400 PLN + 450 PLN + 600 PLN = 22 450 PLN

PLN 22,450: 7 = PLN 3,207.14

Basis for the calculation of sick pay:

PLN 3207.14 - 13.71% = PLN 3207.14 - PLN 439.70 = PLN 2767.44

Daily sick pay amount in the amount of 80%:

PLN 2,767.44: 30 = PLN 92.25

PLN 92.25 x 80% = PLN 73.80

The amount of sick pay for the period of 12 days of incapacity for work:

PLN 73.80 x 12 = PLN 885.60

For 12 days on sick leave, the employee will receive sick pay in the amount of PLN 885.60.

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How to calculate the basis for the calculation of sickness remuneration in the event of an employee's illness in the first month of employment?

If the incapacity for work occurs in the first month of employment and the employee is entitled to sick pay, the basis for sick pay will be the remuneration that the employee would receive after working the entire month, less the amount of the social security contributions deducted by the employer. In order to receive sick pay, an employee on sick leave in the first month of employment should:

  • before employment, be subject to sickness insurance on a different basis, and the break between the end of this insurance and current employment should not exceed 30 days, unless it was caused by unpaid leave, parental leave or active military service;
  • have at least 10 years of work experience during which he was subject to compulsory health insurance.

Example 3.

The employee concluded an employment contract on February 1 for the amount of PLN 2,900 gross per month, and on February 17 he became incapable of work for a period of 6 days. His previous employment ended on January 15th due to the termination of his employment contract. This means that the break in being covered by sickness insurance was 16 days. Therefore, the employee meets the criteria for receiving sick pay.

Basis for the calculation of sick pay:

PLN 2,900 - 13.71% = PLN 2,900 - PLN 397.59 = PLN 2,502.41

Daily sick pay amount in the amount of 80%:

PLN 2,502.41: 30 = PLN 83.41

PLN 83.41 x 80% = PLN 66.73

The amount of sick pay for the period of 6 days of incapacity for work:

PLN 66.73 x 6 = PLN 400.38

For 6 days on sick leave, an employee will receive a sick pay in the amount of PLN 400.38.