February 24, 2021

How Much Time are you Wasting on Occupational Sick Pay Calculations?

Does the thought of calculating sick pay make you feel, well, sick? In 2020, the average level of absence in the United Kingdom was 5.8 days per employee. So unfortunately, sick pay calculations aren’t going anywhere. However, clever automation and bespoke auto-applied rules to your sick pay could save you time.

What is Occupational Sick Pay?

Businesses can opt to pay occupational sick pay, (OSP) based on individual employee earnings whilst an employee is off sick. This can be paid on some, or all of an employee’s normal earnings. The rules around this are set by employers themselves.

Usually, occupational sick pay starts after a minimum period of service, as set out by the employer. Occupational sick pay is paid as a matter of contractual terms and conditions. Once an employee qualifies, employers usually provide full pay for a set number of weeks, which may or may not be followed by a period of half pay.

What is the Issue with Manual Calculations?

Errors made during input can have a domino effect on your business – pushback from your team, angry staff and possibly overpaying your people for sick leave they aren’t entitled to!

In addition to this, it requires close monitoring from your payroll team. Depending on the size of your business, calculations can be incredibly time consuming.

As occupational sick pay is set out in employee contracts, as an employer you are contractually obliged to pay your employees OSP if they’re entitled to it. Therefore, miscalculation can leave your business open to risk.

How Does Moorepay Automate Occupational Sick Pay?

Our system allows you the freedom to define your own rules around OSP, ones that align to your bespoke terms. Forget having to monitor your OSP manually. Kiss goodbye to spreadsheets and time-consuming calculations. The Moorepay system does it all for you.

Manual miscalculations will leave your spreadsheets a mess, open to human error and almost always result in a frustrated payroll team. While manual calculation might be an option for small-sized businesses, growing businesses will need a system that can keep up.

In our system, rates are auto-applied to pay through our clever automation, our software will even calculate complicated sick pay rules based on seniority and tenure. Our automation covers complex employee banding and changes across full-time and part-time staff. Your bespoke rules will be defined in our system, and then these are automatically applied to your payroll.

Find out more about how Moorepay can help you automate sick pay calculations here.

Share this article

About the author

Molly Chapman

About the author

Molly Chapman

Molly Chapman is the Product Marketing Manager at Moorepay, having joined our team in 2020. In short, Molly helps bridge the gap between our products and the customer: communicating the benefits and technical details of our products to ensure that our customers get the best out of Moorepay’s payroll & HR software and services. Working for many years in product marketing, most notably within the travel industry, Molly has an established background in bringing value to her client base. Outside of work, Molly enjoys experimenting with vegetarian cooking, walking the dogs and a good B&M bargain.

Related Posts

Making payroll & HR easy