Unwell employees getting 19.5 weeks’ full pay, finds research

Employers continue to provide occupational sick pay well above statutory minimums despite recent reforms to statutory sick pay (SSP).

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The findings, from a survey by employment research group Incomes Data Research, come after the Employment Rights Act 2025 extended eligibility for SSP to all employees. Statutory sick pay is now payable at £123.85 a week, or 80% of average weekly earnings where this is lower.

IDR found that employers typically provide significantly more generous occupational sick pay arrangements. Across the economy, employees with five years’ service receive a median entitlement of 19.5 weeks’ full pay, while new starters are entitled to a median of 6.5 weeks’ full pay once any probation period has ended.

Although some organisations reserve enhanced sick pay for managers or head office staff, three-quarters of employers with occupational sick pay schemes apply the same provisions across their entire workforce.

The research also highlighted marked differences between sectors. The most generous arrangements were generally found in the public and not-for-profit sectors, where longer-serving employees were often entitled to up to 26 weeks’ full pay followed by a further 26 weeks on half pay.

Alongside enhanced sick pay, many employers were investing in health benefits designed to reduce absence and improve workforce wellbeing, the research found.

Katherine Heffernan, of IDR, said: “Despite offering enhanced sick pay, in practice employers are likely to want to try to keep absence to a minimum through other aspects of their employment offering, such as effective occupational health support and incentives to help staff stay well like gym membership, vaccinations or private healthcare.”

The survey found that 23% of organisations provide private medical insurance for their entire workforce, while a further 47% make it available to selected groups, such as salaried or managerial employees. However, newer benefits such as funding for weight-loss injections, fertility treatment or standalone neurodiversity assessments have yet to gain widespread adoption.

The findings also underline the continued importance of absence management for HR teams. Almost all organisations surveyed (92%) operate formal absence management procedures, typically triggering reviews after three separate absences or 10 days’ sickness over a rolling 12-month period.

Employers also monitored patterns of absence, noted the report, including around major sporting events.

Heffernan added: “With any future England matches scheduled for relatively sensible weekend hours, hopefully line managers won’t find too many staff falling foul of this aspect of their absence policy.”

Blanche Brett, associate in the employment team at Birketts, told Personnel Today that employers should ensure enhanced sick pay schemes remain fair while supporting employee wellbeing.

“Most employees use sick leave appropriately, but employers will want to ensure that occupational sick pay schemes are not open to abuse. The key is striking the right balance between supporting genuinely unwell employees and addressing attendance concerns in a fair and proportionate way. Clear communication and well-drafted absence management policies remain essential.

“Employers are increasingly recognising that supporting employee health is not just a wellbeing issue but a business issue. Investment in health benefits can improve employee experience, reduce absence and help organisations create a more resilient and productive workforce.”