Sick leave - what do you pay your employee for a day of sick leave?

It can be a struggle to calculate the payment for your staff for a day of sick leave, but it doesn't have to be.

The Holidays Act 2003 outlines the payment method to be calculated for staff if they take a day or sick leave to care for either themselves or someone that relies on them for care.

In most cases an employee will be paid their Relevant Daily Pay.  This is the amount the employee would have received had they been at work on the day in question.  The payment will include any taxable allowances that the employee would have received on that day.  Non taxable allowances are not included in this payment.

In cases where it is too difficult to calculate the payment on the days because the employees work pattern varies, then the employees Average Daily Pay can be used.  This is the employees Gross Earnings in the previous 52 weeks divided by the days on which those earnings were earned.

Always, attempt to calculate the Relevant Daily Pay first.  

If you are not sure if you are doing it right, please don't hesitate to call Kerryn.  She will guide you through this process.