Sick pay replaces some or all of your wages when you're too ill to work. Whether you get it, and how much, usually depends on four things: how long you've worked for your employer (the qualifying period), whether the first day or two are unpaid (waiting days), how many full-pay days you have left, and what happens after they run out (often a reduced rate, or a split between your employer and social security). This guide explains each one in plain words, works through a 10-day illness with real numbers, and shows what a correct payslip looks like.
Sick pay rules are set by each country's labour and social security laws, and often by contracts or collective agreements on top. This guide explains how sick pay commonly works and how to check the maths. It isn't legal advice. For the exact rules where you work, check your contract and your labour department or social security office.
1. What sick pay is, and who pays it
Sick pay is money you receive for days you can't work because you're ill or injured. In many places it comes from two sources:
- Your employer. Pays your wages, in full or in part, for a set number of sick days.
- Social security. Pays a sickness benefit, often a percentage of your usual earnings, once you've been off for a few days and have paid enough contributions.
Some employers pay more than the law requires, for example full pay for the whole illness. That's allowed. What they usually can't do is pay less than the legal minimum, even if the contract says so.
Injuries at work are often handled differently, through employment injury or workers' compensation rules. If you were hurt on the job, say so when you report it, because a different scheme may apply.
2. Who qualifies, and how sick days build up
Many places only give paid sick leave once you've worked for the employer for a minimum time. This is the qualifying period. It might be counted in:
- Calendar time, such as 3 or 6 months from your start date.
- Days actually worked, such as 100 or 110 days. Under this kind of rule, days off, unpaid leave and days you weren't rostered don't count, so a part-timer may take longer to qualify than a full-timer who started on the same day.
Before you qualify, you can still be off sick, and your employer usually can't punish you for a genuine illness. You just may not be paid for those days, apart from any social security benefit you're entitled to.
Social security often has its own test, based on contributions. For example, you might need a minimum number of weekly contributions paid in the months before you fell ill. You can qualify for one and not the other.
How sick days build up
Paid sick days are counted in different ways:
- A fixed yearly allowance, such as 10 or 12 days a year, which resets each year.
- Accrual, where you earn sick days as you work. For example, 1 day for every 22 days worked. Someone who has worked 66 days has earned 66 ÷ 22 = 3 sick days.
- A mix, with accrual in the first year and a fixed allowance after that.
Unused sick days usually don't carry over and usually aren't paid out when you leave, unlike annual leave. Some contracts are more generous, so check yours.
3. Waiting days
A waiting day is an unpaid day at the start of an illness. Some systems have none. Some have one, two or three. The idea is to discourage very short absences, and to keep the cost of short illnesses down.
Things to check:
- Whose waiting day is it? Social security may have waiting days while your employer pays from day one, or the other way round.
- Does it apply every time? Some rules waive the waiting days if you fall ill again within a short time, or if the illness lasts longer than a set number of days.
- Working days or calendar days? A waiting period of "three days" that starts on a Friday may cover a weekend you weren't rostered anyway.
The International Labour Organization's standard on sickness benefit allows a waiting period of no more than three days. Many countries use fewer.
4. Full-pay days, reduced-rate days and the 60/40 split
Once waiting days are over, sick days are usually paid in one of three common ways:
- Full pay. Your normal daily wage, for a limited number of days a year.
- Reduced rate. A percentage of your daily wage, such as 40% or 60%, often after the full-pay days run out.
- A split. Social security pays a share of your wage, often around 60%, and your employer tops up the rest, often 40%, so that together you get your full wage for a period.
ILO standards set sickness benefit at no less than 60% of previous earnings for a standard worker. That's why 60% comes up so often.
Worked example: a 10-day illness, two different rule sets
Ana López and Juan Pérez both earn US$ 10.00 an hour, work 8-hour days Monday to Friday, and are off sick for 10 working days. A normal 10 days' pay is 10 × 80.00 = US$ 800.00.
Ana's workplace: no waiting days. Her employer pays the first 3 days in full. From day 4, social security pays 60% of her daily wage and her employer tops up 40%.
| Days | What's paid | Per day | Days | Total |
|---|---|---|---|---|
| 1 to 3 | Employer, full pay | 80.00 | 3 | 240.00 |
| 4 to 10 | Social security, 60% | 48.00 | 7 | 336.00 |
| 4 to 10 | Employer top-up, 40% | 32.00 | 7 | 224.00 |
| Total | 10 | 800.00 |
Ana receives her full US$ 800.00. Her employer pays 240.00 + 224.00 = US$ 464.00. Social security pays US$ 336.00.
Juan's workplace: the first sick day is an unpaid waiting day. He has 5 full-pay sick days left this year. After that, sick days are paid at 40%.
| Days | What's paid | Per day | Days | Total |
|---|---|---|---|---|
| 1 | Waiting day, unpaid | 0.00 | 1 | 0.00 |
| 2 to 6 | Full pay | 80.00 | 5 | 400.00 |
| 7 to 10 | Reduced rate, 40% | 32.00 | 4 | 128.00 |
| Total | 10 | 528.00 |
Juan receives US$ 528.00, which is 800.00 − 528.00 = US$ 272.00 less than a normal fortnight. Same illness, same wage, very different result. That's why the first thing to find out is which rules apply to you.
5. Certificates and giving notice
Most employers need two things from you: notice that you're ill, and sometimes proof.
- Tell your employer as early as you can, ideally before your shift starts, in the way your workplace asks (a call, a message to your supervisor, an app). Late notice is one of the most common reasons sick pay gets refused.
- Medical certificates. Many places let you self-certify for a short absence, often 1 to 3 days. For longer absences a doctor's note is usually needed. Social security almost always needs a certificate before it pays.
- Keep copies. Photograph every note before you hand it in, and keep the messages where you reported in sick.
If you can't get a doctor's appointment in time, tell your employer that, in writing, and send the certificate as soon as you have it.
6. Sick pay and deductions
How sick pay is treated for tax and social security varies a lot:
- Sick pay from your employer is often treated like wages, so the usual income tax and social security deductions apply.
- Sickness benefit from social security is often not subject to social security contributions, and in some places it isn't taxed either.
- Some places exclude sick pay from social security contributions even when your employer pays it through payroll.
You don't need to know every rule to spot a problem. Check that the deductions on a sick-pay payslip make sense compared with a normal one. If your sick pay is lower than usual but the social security deduction is the same as on a full-pay week, ask why.
7. Falling sick on holiday, and long-term sickness
Sick during annual leave
In many places, if you fall ill during your annual leave, those days can be treated as sick days instead, and you get the leave back to take later. Usually you need to tell your employer straight away and provide a medical certificate. Some places don't allow this at all, so check before you rely on it.
Long-term sickness
If you're off for weeks or months:
- Your full-pay and reduced-rate days will run out. Find out the dates in advance, so the drop in income isn't a surprise.
- Social security may keep paying after your employer stops, often for a set number of weeks, and sometimes moving you onto a longer-term disability benefit.
- Your job is often protected for a period, but not always forever. Stay in touch with your employer, keep sending certificates, and ask about a phased return or lighter duties when you're getting better.
- Annual leave may keep building up while you're off sick, depending on local rules.
8. What your payslip should show
A clear payslip for a period with sick days should let you check the maths without asking anyone. Look for:
- Sick days as their own line, separate from normal hours, with the number of days (or hours) and the rate.
- Full-pay and reduced-rate days shown separately, for example "Sick (100%) 5 days" and "Sick (40%) 4 days".
- Any waiting days shown as unpaid, not just missing.
- The employer top-up, if part of your pay comes from social security.
- Your remaining sick balance, if your employer tracks one.
- Deductions that match the rules for sick pay where you work.
If you can't tell from the payslip which days were paid at which rate, ask for a breakdown. You're entitled to understand how your pay was worked out.
9. A checklist for employees and employers
- You know whether you've passed the qualifying period, and how it's counted.
- You know whether there are waiting days, and whose they are (employer, social security, or both).
- You know how many full-pay days you have left, and what rate applies after that.
- Sickness was reported on time, in the way the workplace asks, and you kept a copy.
- Medical certificates were handed in, and you kept photos of them.
- The payslip shows sick days as their own lines, with days and rates.
- Deductions on sick pay match the local rules.
- Employers: sick balances, certificates and dates are recorded for each absence, and the rules are written down in plain words.
10. Frequently asked questions
Am I entitled to sick pay in my first few months?
It depends on the qualifying period where you work. Many places require a minimum length of service, or a minimum number of days worked, before paid sick leave applies. You may still qualify for social security benefit if you've paid enough contributions.
What is a waiting day?
An unpaid day at the start of an illness. Some systems have none, others up to three. Check whether the waiting day applies to your employer's sick pay, to social security benefit, or both.
Do I need a doctor's note?
Usually not for a short absence of one to three days, where self-certifying is often enough. For longer absences, and for any social security claim, a medical certificate is usually required.
Why is my sick pay less than my normal pay?
Common reasons are an unpaid waiting day, running out of full-pay days so a reduced rate applies, or social security paying part of your benefit directly to you instead of through payroll. Ask for a breakdown by day and rate.
Can I get my holiday back if I'm sick during annual leave?
In many places, yes, if you report it promptly and provide a medical certificate. Some places don't allow it. Check your contract and local rules.
Do unused sick days get paid out when I leave?
Usually not. Unused sick days normally lapse, unlike unused annual leave. Some contracts say otherwise. See our guide to final pay and severance.
Is sick pay taxed?
Sick pay from your employer is often taxed and has social security deducted like normal wages. Sickness benefit from social security is often treated differently. The rules vary, so check your payslip against local guidance.
11. Where to get help
- Read your contract and staff handbook. They often give more than the legal minimum, and they explain how to report sickness.
- Ask payroll or HR for a breakdown of each sick day: the date, the rate, and who paid it.
- Contact your social security office about benefit claims, contributions and certificates.
- Contact your labour department if you think you've been underpaid or treated unfairly for being ill. There are often time limits on claims, so don't wait.
- Talk to your union or staff representative, if you have one.
For related questions, see overtime explained and how leave approval works.