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Cost of absence calculator - Varma




If and Varma have created this calculator to estimate the total cost of employee absences resulting from accidents and sickness.

Calculator input consists of: Average gross monthly salary, number of employees and the annual employee absence rate either as a percentage or as the total number of annual absence days.

The calculations exclude certain specific serious cases, such as disability pensions and costs relating to fatalities. The cost estimate is indicative and applies only to absence.

Breakdown of absence costs

Total cost

Total cost of an absence day is composed of three parts: Salary cost, non-wage labour costs and indirect costs.

Salary cost

Gross salary in euros during the absence days. Salary is allocated to working days according to the regular working hours (EK 2014 Työaikakatsaus).

Non-wage labour costs

Salary increased by 30% consisting of:

  • Employee pension insurance 19%
  • Social security 2,08%
  • Unemployment insurance premium 0,8%
  • Holiday pay 4,5%
  • Statutory insurance and other social expenses 3,62%
    • Group Life insurance, Statutory Workers' Compensation insurance, occupational health care, training, fringe benefits etc.
    • This section can vary significantly among companies

Indirect cost

The indirect cost relating to employee absence include e.g.: loss of productivity, temporary staff cost, overtime and extra administration work relating to absence.

Calculation of indirect costs is based on employee salary and non-wage labour cost multiplied by average correlation factor between indirect cost and labour cost.

The amount of non-wage labour cost can vary significantly among companies and according to employee role.


The Graph shows the total cost deriving from accident and sickness absent days divided into salary cost, non-wage labour cost and indirect cost.

X-axis shows the annual absence percentage of the company and Y-axis the total cost of annual absence days.

Back Help

Cost of Absence Calculator

Estimate the cost of employee absence to your company.


absence rate
working days a year
working days per employee

Total cost of absence days

Total cost of one absence day

Decreasing absence days by 10–30 % the company can achieve considerable savings:

10 percent decrease in absence
( absence rate )
20 percent decrease in absence
( absence rate )
30 percent decrease in absence
( absence rate )
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