What is the Sick Leave Incentive?
The Sick Leave Incentive is an annual cash payment that rewards employees who use fewer sick days during the year.
The fewer sick days you use, the higher the percentage you receive.
How is the incentive calculated?
- It is calculated as a percentage of your accumulated (banked) sick leave.
- Sick leave can be banked up to a maximum of 85 days.
- The percentage is applied to your banked sick leave balance (up to 85 days).
In simple terms:
You receive a percentage payout based on how many sick days you have saved.
Sick Leave Usage and Incentive Levels
| Sick Days Used During the Year | Incentive You Receive |
|---|---|
| 0–5 days | 5% of accumulated sick leave |
| 6 days | 4% of accumulated sick leave |
| 7 days | 3% of accumulated sick leave |
| 8 days | 2% of accumulated sick leave |
| 9 days | 1% of accumulated sick leave |
| 10 or more days | No incentive |
What time period is counted?
- Sick leave usage is measured from November 1 to October 31.
- Your accumulated sick leave balance is measured as of October 31.
When is the payment made?
- The incentive is paid once per year, during the month of November.
Examples
Example 1
- Banked sick leave: 60 days
- Sick days used: 4
- Incentive level: 5%
- Payout: Cash value of 3 sick days (5% of 60)
Example 2 (Maximum Bank)
- Banked sick leave: 85 days (maximum)
- Sick days used: 6
- Incentive level: 4%
- Payout: Cash value of 3.4 sick days (4% of 85)
Important Reminders
- Sick leave cannot be banked beyond 85 days.
- Using 10 or more sick days means you do not qualify for the incentive.
- The incentive is meant to reward good attendance, not discourage employees from using sick leave when genuinely ill.
For full details, please refer to Article 27 of the Collective Agreement.