Film: How sick pay is deducted

This film explains how sick pay is deducted. If you are unable to watch the film, check out the examples further down on this page.

For English subtitles, use settings on the Youtube media player and select Undertexter and then Engelska. (Length: 1:10.)

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.

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.

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 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.

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)