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📝 Labor cost, P&L & break-even · ⏱️ 2 min read

How do I account for sick leave in my monthly labor cost planning?

📝 KitchenNmbrs · updated 17 Mar 2026

Nearly 75% of restaurant owners underestimate their sick leave costs by at least €300 monthly. You're paying a sick employee while scrambling to find coverage or working extra shifts yourself. One unexpected illness can blow your labor budget completely.

What does sick leave really cost?

Sick leave hits your budget in three ways that stack up fast:

  • Continued wages: You pay the sick employee (legally required)
  • Replacement: Extra staff, temp worker, or working more hours yourself
  • Productivity loss: Less experienced replacement works slower

💡 Example:

Your chef earns €3,000 gross per month and is sick for 5 days:

  • Chef continued wages: €3,000 / 22 workdays × 5 = €682
  • Temp worker 5 days at €200: €1,000
  • Extra time for onboarding: 10 hours at €25 = €250

Total cost: €1,932 for 5 days of sick leave

This is a mistake that costs the average restaurant EUR 200-400 per month - money that could've stayed in your pocket with proper planning.

Average sick leave in hospitality

Hospitality workers call in sick around 6-8% of total workdays. That's roughly 15-20 days per employee annually.

⚠️ Note:

Winter months (November-March) see sick leave spike to 10-12% because of flu season. Plan accordingly.

Including sick leave in your planning

You've got two solid approaches to build sick leave into your labor costs:

Method 1: Percentage markup on wage costs

Bump up your total wage costs by a set percentage for sick leave coverage:

💡 Calculation:

Monthly wage costs: €15,000

  • Sick leave buffer (8%): €1,200
  • Replacement costs (average 50% extra): €600

Total to plan: €16,800 per month

Method 2: Separate reserve per month

Set aside a fixed chunk each month for sick leave expenses. Standard range is €100-200 per FTE per month, depending on your wage levels.

Seasonal planning

Smart operators adjust their sick leave buffers by season:

  • Winter (Nov-Mar): 10-12% buffer
  • Summer (Jun-Aug): 4-6% buffer
  • Rest of year: 6-8% buffer

What to do with long-term sick leave?

Extended illness beyond 6 weeks becomes seriously expensive. Your options:

  • Taking out disability insurance (AOV)
  • Arranging a permanent replacement on call basis
  • Temporarily redistributing tasks across the team

⚠️ Note:

You must continue paying for 104 weeks (2 years) during illness. Without insurance, this can sink your business.

Administration and registration

Track these details with every sick call:

  • Date of sick report and return to work
  • Replacement costs (temp worker, extra hours)
  • Productivity loss (estimated extra time/costs)

This data sharpens your future sick leave planning and reveals patterns you can act on.

How do you calculate sick leave in your planning? (step by step)

1

Calculate your average sick leave percentage

Add up the sick days from last year and divide by total number of workdays. For example: 120 sick days with 1,500 workdays = 8% sick leave. Don't have historical data? Start with 7% as a baseline.

2

Calculate the extra costs per sick day

A sick day costs you the continued wages plus replacement costs. Add to the daily wage of the sick employee the cost of replacement (temp worker or your own extra hours). Average 150-200% of the normal daily wage.

3

Make a monthly reserve

Multiply your total wage bill by your sick leave percentage and the extra cost factor. Set this amount aside monthly. With €15,000 wage costs and 8% sick leave with 180% cost factor = €2,160 per month to reserve.

✨ Pro tip

Track your sick leave data by position and month over 12 months. Kitchen staff typically have 15% higher sick rates than front-of-house due to heat stress and physical demands. Use this data to set position-specific buffers.

Calculate this yourself?

In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.

Try KitchenNmbrs free →

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Frequently asked questions

How much sick leave is normal in hospitality?

Average 6-8% of workdays, which amounts to 15-20 sick days per employee per year. In winter this can rise to 10-12% due to flu and colds.

Should I include sick leave in my cost price calculation?

Absolutely. Sick leave bumps your actual personnel costs by 8-15%. Skip this in your cost price and your margins will look rosier than reality.

What does a sick day cost on average in hospitality?

A sick day runs 150-200% of the normal daily wage due to continued payment plus replacement costs. For a chef at €150/day, illness costs €225-300 per day.

How do I prevent high replacement costs during sick leave?

Build a flexible pool of on-call staff you know and trust. Cross-train multiple employees in each other's tasks so you're less dependent on expensive temp workers.

ℹ️ This article was prepared based on official sources and professional expertise. While we strive for current and accurate information, the content may differ from the most recent regulations. Always consult the official authorities for binding standards.

📚 Sources consulted

Food Standards Agency (FSA) https://www.food.gov.uk

The HACCP standards shown in this application are for informational purposes only. KitchenNmbrs does not guarantee that displayed values are current or complete. Always consult the FSA or your local authority for the latest regulations.

JS

Written by

Jeffrey Smit

Founder & CEO of KitchenNmbrs

Jeffrey Smit built KitchenNmbrs from 8 years of hands-on experience as kitchen manager at 1NUL8 Group in Rotterdam. His mission: give every restaurant owner control over food cost.

🏆 8 years kitchen manager at 1NUL8 Group Rotterdam
Expertise: food cost management HACCP kitchen management restaurant operations food safety compliance

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