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Absence cost calculator

Estimate the annual cost of sickness absence for your organisation. The method and sources are listed with the calculator.

Two colleagues review financial charts on a laptop at an office desk.
Free for employersFigures sourced from CIPD and ONS
Free to use
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Method and sources shown
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Estimate the cost of sickness absence

The Keep Britain Working review estimates that economic inactivity caused by ill health costs the UK £212 billion a year, around 7% of GDP. It reports that 2.8 million working-age people are economically inactive because of health conditions.

Your organisation

Average sickness days per employee per year

Estimated true cost per year
£189,808
≈ £1,898 per employee
Direct cost (salary for days lost)
£126,538
≈ £1,265 per employee
Working days lost per year940

Cost by cause

The starting split uses the ONS 2025 shares of sickness absence occurrences.

Mental health 8.9%
Musculoskeletal 14.6%

Drag a handle, or select it and use the arrow keys, to change the split.

Mental health£16,893
Musculoskeletal£27,712
Other causes£145,203

Model a reduction

A reduction of 1 day per employee is estimated to save

£20,192

The saving uses the true cost at 1.5 times the direct cost. The direct saving is £13,462.

Indicative only. This calculator gives an estimate for planning. Actual costs and the effect of any intervention vary by organisation. It is general information for employers and is not medical, financial or legal advice.

Discuss your figures with us

The enquiry form opens with your number of employees and sickness days filled in. We answer enquiries within 3 working hours.

How the estimate is calculated

  • True cost multiplies the direct cost by 1.5 by default, adjustable from 1 to 3. The Keep Britain Working review estimates that poor workplace health costs employers about £85 billion a year. Of this, £57 billion is sick pay (£10 billion) and lost output while employees cannot work (£47 billion). The remaining £28 billion is lost productivity from employees working while unwell (£21 billion) and the cost of conflict resolution, litigation and recruitment (£7 billion). The default of 1.5 is the ratio of £85 billion to £57 billion.
  • Direct cost = (salary ÷ 260 weekdays) × sickness days × employees.
  • Default days come from the CIPD Health and wellbeing at work 2025 survey. The UK average is 9.4 days per employee per year, up from 7.8 days in 2023. The averages are 13.3 days in public services, 9.1 in the private sector and 6.5 in non-profit organisations. CIPD advises caution with the public services and non-profit figures because of small samples. The ONS estimate for 2025 is 4.4 days per worker.
  • Cause split starts from the ONS reasons for sickness absence in 2025. Musculoskeletal problems accounted for 14.6% of occurrences and mental health conditions for 8.9%. The ONS shares count occurrences of absence. They do not measure days lost or cost. The split is indicative and adjustable.
  • On-costs excluded. The calculation uses gross salary only. It excludes employer National Insurance, which is 15% of earnings above £5,000 a year in 2026 to 2027, and employer pension contributions.

Related services

We provide these services for employers managing sickness absence.

Talk to us about sickness absence

We advise on reducing sickness absence across your organisation. We answer enquiries within 3 working hours.