Will Day-One Sick Pay Increase Absence? Impact on Employers, Costs and Early Intervention

Day-one Statutory Sick Pay (SSP) is likely to increase the visibility of short-term absence and bring forward the point of employer intervention.

While overall illness rates may not change significantly, employers are expected to see:

• More short-term absence being recorded

• Earlier reporting of health conditions

• Increased immediate cost exposure

Early occupational health intervention can reduce absence duration and prevent progression to long-term absence, improving both workforce outcomes and cost control.

Executive Summary

• Day-one Statutory Sick Pay increases the visibility and timing of absence

• The point of intervention has moved from day four to day one

• Earlier reporting of MSK and mental health conditions is expected

• Traditional absence management approaches may no longer be effective

• Early occupational health involvement reduces absence duration and cost

• Financial impact includes both direct wage costs and indirect productivity loss

• Proactive organisations are better positioned to manage cost, risk, and workforce performance

From April 2026, changes to Statutory Sick Pay mean eligible employees receive sick pay from the first day of absence.

This is a positive step for employee support.
For employers, it changes how absence presents and when intervention is most effective.

What does day-one SSP mean for employers?

Day-one SSP refers to the removal of the three-day waiting period, meaning employees are paid from the first day of sickness absence.

This change is expected to:

• Increase recorded short-term absence

• Bring forward reporting of health issues

• Make previously unreported absence more visible

Will day-one SSP increase absence?

Day-one SSP is unlikely to increase illness itself, but it is expected to increase the recording and visibility of absence.

Organisations may see:

• More short-term absence episodes

• Earlier reporting of symptoms

• Increased visibility of MSK and mental health-related absence

Why timing of intervention now matters

Most absence management models are based on intervention from day four. Under day-one SSP, effective intervention now starts from day one.

Delayed intervention increases the risk of:

• Longer absence duration

• Escalation into long-term absence

• Higher associated costs

How does early occupational health reduce absence costs?

Early occupational health support enables:

• Clinical triage at the start of absence

• Identification of underlying causes

• Targeted support for MSK and mental health

• Early workplace adjustments

Early intervention reduces absence duration and prevents escalation into long-term absence, improving cost control and productivity.

What is the financial impact for employers?

Sickness absence remains a significant cost to UK organisations.

According to Health and Safety Executive millions of working days are lost annually due to work-related ill health.

With day-one SSP, employers may experience:

• Increased direct wage costs

• Higher frequency of absence

• Increased management time

• Indirect costs such as lost productivity and cover

Where return on investment is achieved

The financial opportunity lies in early intervention and cost avoidance.

Organisations that act early can:

• Reduce absence duration

• Prevent long-term absence

• Improve return-to-work outcomes

• Lower overall absence-related costs

Key Takeaways

• Day-one SSP increases the visibility and timing of absence

• Short-term absence is likely to be recorded more frequently

• Intervention needs to occur earlier

• Early occupational health reduces absence duration and cost

• Financial impact includes direct and indirect costs

• Proactive management improves workforce and financial outcomes

Day-one SSP changes both entitlement and timing.

Organisations that adapt their approach to include earlier intervention are better positioned to manage absence, cost, and workforce performance.

If your organisation is reviewing the impact of day-one SSP, OH One Occupational Health (part of The Busy Group UK) can provide practical guidance on early intervention strategies that support both workforce health and cost management.