Calculating deductions from sick pay

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From 1 January 2019, waiting periods is replaced by deductions from sick pay. As a result, you need to perform a different calculation to determine when one of your employees has become ill. The deduction, a one-off amount that is based on an average work week, is 20% of sick pay.

When one of your employees becomes ill, you need to ensure that you have determined the correct sick pay. Sick pay is 80% of the employee’s salary and other benefits. A deduction is made from sick pay on the day that the employee becomes ill.

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Video: How sick pay is deducted

This video succinctly explains how sick pay is deducted by means of an example of the way that the calculation may be performed for an hourly employee. If you are unable to watch the video, check out the examples further down on this page.

This video is in Swedish but you can choose English subtitles. First you have to play the video and then click on the gear for settings in the Youtube menu. Select Undertexter and then Engelska.

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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.

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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.

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Important things to keep in mind when transitioning from waiting periods to deductions for sick pay

  • If you have a payroll administration system, you will need to verify that it calculates correctly on the basis of the new deduction regulations.
  • 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.

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Example, deduction from sick pay

Employees who work on a regular basis

Employees entitled to sick pay
Salary: SEK 110/hour
Sick pay: SEK 88/hour (SEK 110 x 0.8)

Average work week
40 hours
Weekly sick pay: SEK 3 520 (40 hours x SEK 88)

Deduction
20% of weekly sick pay: SEK 704 (SEK 3 520 x 0.2)

Employees who work on a part-time basis

Employees entitled to sick pay
Salary: SEK 150/hour
Sick pay: SEK 120/hour (SEK 150 x 0.8)

Average work week
32 hours (80% of full-time, 40 hours)
Weekly sick pay: SEK 3 840 (32 hours x SEK 120)

Deduction
20% of weekly sick pay: SEK 768 (SEK 3,840 x 0.2)

Employees who work irregularly according to a schedule

Employees entitled to sick pay
Salary: SEK 110/hour
Sick pay: SEK 88/hour (SEK 110 x 0.8)

Average work week
Schedule (Monday: 14 hours, Tuesday: 5 hours, Wednesday: 5 hours, Thursday: off, Friday: 6 hours). Total: 30 hours.
Weekly sick pay: SEK 2 640 (30 hours x SEK 88)

 

Deduction
20% of weekly sick pay: SEK 528 (SEK 2 640 x 0.2)

In this example, the employee is ill the whole day on Monday Sick pay for Monday: (14 hours x SEK 88) - SEK 528 = SEK 704

The employee receives SEK 704 sick pay for Monday. Under waiting period regulations, there would not have been any sick pay for Monday

Employees who work on an irregular basis without a specific activity level

Employees entitled to sick pay
Salary: SEK 140/hour
Sick pay: SEK 112/hour (SEK 140 x 0.8)

Average work week
In this example, you calculate the employee’s average week on the basis of past information. Review the past month and determine whether the information is reasonable. It turns out that the employee averages 36 hours per week. Weekly sick pay SEK 4 032 (36 hours x SEK 112)

Deduction
20% of weekly sick pay: SEK 806 (SEK 4 032 x 0.2)

Did you find this information helpful?

Responsible: Swedish Agency for Economic and Regional Growth

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