The Underlying Cost of a Sick Employee
In financial terms, a sick employee can cost the employer double their daily salary. Not only must a salary continue to be paid, but temporary staff may be recruited to cover gaps in the workforce. Alternatively, existing personnel may be tasked to provide cover and this has a wide-reaching impact on overall team output.
A reasonable estimate of the cost of this in Europe is about 2.5% of GDP.
Average sick leave
The average number of days taken for sick leave varies across organisation size, job status (part-time or full-time) and whether paid sick leave is applicable. For example, in 2021 22.3% of full-time staff in large organisations (100 people or more) took paid sick leave. By contrast, those in smaller organisations of less than 20 people took 16% (full-time) and 8.2% (part-time) respectively. (data available at CSO.ie)
On 20 July 2022, the Sick Leave Act became law in Ireland. From 1 January 2023, workers will have a statutory right to paid sick leave for up to 3 sick days per year. This will increase to 5 days in 2024 and 7 days in 2025. Some larger employers provide sick pay which can exceed these daily numbers.
In 2018, sick leave in the public service sector was estimated to have cost the economy over €380 million with the average number of working days lost equal to 9.2 for full-time workers.