Free calculator for Canadian business owners
Study after study shows paid sick days reduce workplace illness spread, cut turnover costs, and improve team morale - but most business owners are unsure how to cost out a program. That's why we created this Paid Sick Days calculator. Adopting a PSD program at your business is likely less of an investment than you'd expect - with notable returns.
Whether you're creating a brand-new program or increasing the number of days you offer, we're here to help you figure out the math.
The Story: Maria Rodriguez has been running Maria's Pizza in Saskatoon's Riversdale neighborhood for 15 years. She employs 4 full-time kitchen staff, 6 part-time counter and delivery workers, and brings on 4 seasonal employees during the busy summer patio months.
In 2023, Maria decided to offer paid sick days even though Saskatchewan doesn't require it. She wasn't sure what it would cost, so she used the BWA calculator to run the numbers.
Her Setup:
The Results: Her team took an average of 3.1 sick days each - right in line with the national average. The total program cost: $4,521 for the year.
The Real Win: Maria's seasonal workers had always been a revolving door - training new staff every summer cost her time and money. After implementing paid sick days, two of her seasonal staff asked to return the following year. Using BWA's Turnover Calculator, she realized that retaining just those two workers saved her approximately $6,400 in recruitment and training costs - significantly more than her entire sick day program.
She also bumped her seasonal wage to $16/hour the next year (using the Wage Increase Calculator to budget for it). The combination of fair pay and benefits meant she started each summer with experienced staff instead of scrambling to train newcomers.
The Bonus: During a particularly bad flu season, one sick employee stayed home instead of coming in and infecting the kitchen. Maria estimates that alone prevented hundreds in lost productivity and potential health code issues.
| Name | Type | Sick Days | Hrs/Day | Hourly Rate | Replace Rate Optional: The hourly rate you pay to replace this employee when they're sick. Leave blank if you don't hire replacement workers or if the rate is the same as their hourly rate. | Total Hrs | Total Cost | |
|---|---|---|---|---|---|---|---|---|
|
No individual employees added yet. Use the form below to add employees with unique parameters. |
||||||||
Add multiple employees at once with the same parameters. Perfect for teams of 10, 50, or 300+.
We recommend starting with 5 paid sick days per year as a solid balance between supporting employee health and managing costs. Many of Ontario's top health organizations recommend 10 paid sick days per employee per year, but every business is different. Data shows employees typically take an average of 3.1 sick days annually, so they rarely use the full allotment.
Research consistently shows that abuse of paid sick days is rare. When it does happen, it's typically by employees who would abuse any workplace program. Better Way Alliance member businesses report that employees actually take fewer sick days than offered (averaging 2-3 days even when 5+ are available).
Yes – having a clear, written policy protects both you and your employees. Your policy should outline how many days are offered, how to request sick time, whether unused days roll over, and any documentation requirements. A simple one-page policy shared during onboarding prevents confusion.
The simplest method is a shared spreadsheet where you log each sick day as it's taken. You can download this calculator as an Excel file and update it monthly or quarterly. Many payroll systems also include sick time tracking. The key is consistency.
That's actually the norm! Most employees don't use their full allotment. We recommend the "use it or lose it" approach for sick days specifically, as the goal is health protection, not additional compensation. This also keeps your annual budgeting predictable.
While you legally can, we don't recommend it for short absences (1-2 days). Requiring notes creates barriers. Consider requiring documentation only for absences of 3+ consecutive days, or if you notice a pattern of concern with a specific employee.
The math is compelling. Replacing an employee typically costs $7,000-$15,000. If offering sick days helps you retain just one employee per year, the program pays for itself many times over. Check out our Turnover Calculator.
Among Better Way Alliance member businesses, most offer 3-7 paid sick days annually, with 5 days being the sweet spot. Some businesses adjust seasonally (more days during flu season), while others offer a flat rate year-round.
Absolutely. Studies show workplaces with paid sick days see fewer flu and cold outbreaks because employees can stay home when contagious. One sick employee can infect multiple coworkers, leading to cascading absences. Paid sick days are practical risk management.
Yes, some businesses take a flexible approach – offering more days during high-risk seasons. However, be transparent about this from the start. Most businesses find it simpler to offer a consistent annual allotment.