Occupational sick pay policies typically provide up to 19.5 weeks’ pay
One of many changes introduced under the Employment Rights Act was the expansion of statutory sick pay (SSP) to all employees regardless of income (a lower earnings limit, most recently set at £125, previously applied) and the elimination of waiting days – before this change, the first three days of sickness absence did not qualify for the payment of SSP.
This change has brought many more workers into the scope of SSP. In practice however, the weekly rate of £123.25 (or 80% of average earnings if lower) that is on offer falls far short of typical weekly earnings and many employers therefore enhance sick pay for some or all permanent staff. Our recent survey looked at the extent of occupational sick pay provision and how employers seek to manage absence through health-related benefits, occupational health support and absence management policies.
While it is hard to gauge what proportion of employers operate an occupational sick pay policy – 96% of survey respondents told us that they do so, but this may reflect the self-selecting nature of the sample – at three-quarters of organisations with an occupational sick pay policy, these enhanced terms are the same for all groups of staff. A handful reserve such terms for management or head office employees, with frontline staff only eligible for SSP, but some other organisations that differentiate provision by staff group ultimately offer the same maximum entitlement to all employees, albeit over differing timeframes, with senior managers often becoming eligible for the full benefit on joining.
It is common for sick pay entitlement to increase with length of service, although almost three-in-ten apply the same terms to all staff from joining (or after successful completion of probation). In most cases, maximum entitlement is achieved with five years’ service (or sooner). Across the whole economy, at organisations that offer the same enhanced terms to all employees, the median value of occupational sick pay, which in practice may be based on a combination of full and half weeks’ pay, is equivalent to 6.5 weeks’ full pay for staff during their first year of employment post-probation, rising to 19.5 weeks’ full pay for employees with five years’ service. However, there is considerable variation between sectors with the most generous entitlements typically found within the not-for-profit and public sectors – in the latter sector, longer-serving staff are often eligible for 26 weeks’ full pay and a further 26 weeks at half pay.
While many employers offer enhanced sick pay terms, in practice they will want to keep absence to a minimum by offering occupational health support (usually through external providers) and a range of health-related benefits. For example, just under a quarter (23%) provide private medical insurance (PMI) for the entire workforce and a further 47% offer this to certain employees such as salaried or managerial staff. Meanwhile almost half (45%) of employers offer free flu jabs (although free COVID jabs are almost unheard of). A similar proportion go beyond their statutory obligations in respect of optical care, covering the cost of eye tests for all staff (not just display screen equipment users). And employee assistance programmes are commonplace, offered by three-quarters of survey respondents.
The survey also looked at the extent of newer health benefits such as weight-loss injections or financial support for fertility treatment but found that no employers in the sample currently offer such benefits. One respondent reported that it funds assessments for neurodiverse conditions, although it is possible that other participants’ PMI schemes already cover such assessments.
The majority (92%) of survey participants have a formal procedure for managing absence. The trigger for taking further action is typically three absences in the space of a rolling year (sometimes six months) and/or 10 sick days in a 12-month period. Many also look for patterns in absence – for example, around weekends or major sporting events.
About the IDR Sick Pay report
The IDR Sick Pay report is based on information collected from HR professionals between March and April 2026 as well as data from other employers in our database. The report provides details of sick pay provision by sector for each of the first five years of employment, as well as entitlement for longer-serving staff. The report is based on information from 63 organisations, many of which also feature in the accompanying directory of sick pay policies, which provides comprehensive summaries outlining eligibility for occupational sick pay and the extent of provision at more than 50 named organisations.
The full report, which is priced at £449, is available to purchase using our online order form. You can access the order form through the link below or contact us at sales@incomesdataresearch.com