How to estimate the cost of absenteeism
Research covering 35 jobs found that one day of absence cost employers an estimated average of 1.61 times the employee's daily wage. BLS data for 2025 suggests the equivalent of approximately 4 to 5 absence days per full-time employee annually.
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Start with your payroll and absence records. Use the research and BLS figures to estimate coverage costs and lost productivity.
At a glance
Across 35 jobs, researchers found an average absence cost of about 1.6 times daily wages when coverage and productivity effects were included. The 2025 BLS lost-worktime rate is equivalent to approximately 4 to 5 days annually per full-time employee.
- 4 to 5 days
- Approximate annual workdays lost per full-time employee based on the 2025 BLS lost-worktime rate. About three days were associated with illness or injury.
- About 1.6x
- The cost of a day’s absence as a multiple of the worker’s daily wage, on average across jobs (Nicholson and colleagues, Health Economics). The research found multipliers below 1 for some roles and above 2 for others.
What to include in an absence-cost estimate
Start with daily pay, then account for coverage costs and the effect on the rest of the team. A missed shift may create overtime costs, delay work, or require coworkers and managers to cover essential tasks. Research across 35 jobs found that for most jobs, a missed day costs employers more than the employee's daily wage.
- Direct pay or estimated lost output. For paid leave, include compensation for the missed workday. For unpaid leave, estimate the value of work affected by the absence.
- Coverage. Include overtime for coworkers covering the shift, often at time-and-a-half, along with temporary staffing or manager time spent covering essential work. Overtime premiums and temporary staffing can increase the hourly cost of coverage.
- Effects on team productivity. In team-based or time-sensitive work, one absence can affect several people. A production line may operate below capacity, a handoff may be delayed, or a project may lose a day.
- Recurring absence. Repeated absences can increase overtime, disrupt schedules, and affect staffing needs. Over time, they can place additional pressure on coworkers, lower morale, and contribute to turnover.
The multiplier combines pay or lost output, coverage expenses, and productivity effects into one estimate for each absence day.
Absenteeism Cost Calculator (Excel workbook) | $29
Enter payroll figures, absence days, and a coverage multiplier to estimate direct and indirect costs. The $29 workbook adds department-level scenarios.
How to choose an absence-cost multiplier
A 2006 study by Sean Nicholson, Mark Pauly, and colleagues examined absence costs across 35 jobs in 12 industries, drawing on responses from approximately 800 managers. The researchers found a median cost multiplier of 1.28 and a mean of approximately 1.61 times daily wages.
Choose the multiplier based on how easily someone can cover the work, how much coworkers depend on it, and how quickly it must be completed. When a coworker can complete the work later with little additional expense, the multiplier may be below 1. Specialized or time-sensitive roles may have multipliers above 2. SHRM’s summary of the research places most jobs between 1 and 2 and reports the same 1.61 average.
Use 1.6 as your starting estimate, then adjust it for the role and your actual coverage expenses.
- Flexible work or available coverage Below 1x to 1x
- Work can be completed later or covered by another employee at little additional expense.
- Team-dependent work About 1x to 1.5x
- Coworkers depend on the role's work and may need to adjust schedules or responsibilities.
- Time-sensitive or difficult-to-cover work Up to 2x
- A shift requiring coverage, a fixed deadline, or a specialized skill can increase the cost of an absence.
- Specialized or difficult-to-replace work 2x and above
- A specialized employee with limited backup or a customer-facing role requiring continuous coverage may be difficult to replace for the day. A missed day can delay a project, service, or customer commitment.
Calculate the cost of one absence day
Consider an employee earning $52,000 annually. Across 260 working days, that equals $200 per day. At the research average of about 1.6, the estimated absence cost is $320: $200 in pay or lost output and approximately $120 in additional coverage and productivity costs.
- $52,000 ÷ 260 = $200 per day
- Daily pay or estimated lost output. Include pay for the missed workday or the value of work affected by unpaid leave.
- $320
- Estimated total cost at 1.6 times daily pay. Daily pay or output plus approximately $120 in additional coverage and productivity effects.
| One worker, 5 unplanned days in a year $320 a day at the 1.6x average | about $1,600 |
|---|---|
| Daily pay or estimated lost output 5 days at $200 | $1,000 |
| Additional coverage and productivity costs 5 days at $120 | $600 |
| A 50-person site, 5 days each the same day rate, across the team | about $80,000 a year |
This annual example assumes five absence days per employee. By the BLS lost worktime rate, the typical full-time worker loses about 4 to 5 days a year to absence, roughly 3 of them to illness or injury. For additional context, the CDC Foundation estimated annual productivity losses linked to worker illness at approximately $1,685 per employee, or $225.8 billion nationally, in 2015. Build your budget around your payroll, absence records, and actual coverage expenses.
Plan for absence costs in your staffing budget
Include absence costs when planning your staffing budget. The Bureau of Labor Statistics tracks absence through the Current Population Survey. In 2025, approximately 3.2% of full-time wage and salary workers were absent during a given week for reasons other than vacation or holidays. Illness or injury accounted for approximately 2.2 percentage points. Family responsibilities, child care, and personal obligations accounted for the remaining portion. The lost-worktime rate was approximately 1.7% of usual working hours, equivalent to roughly 4 to 5 workdays annually.
Absence rates vary across employee groups and industries. The 2025 BLS figures show an absence rate of approximately 4.0% for women and 2.6% for men. Rates were also somewhat higher among older workers. The 2025 BLS annual figures cover 11 months because October data was not collected during the federal government shutdown. This limits direct year-to-year comparisons. Use your own absence and coverage records alongside the BLS figures when preparing your staffing budget. The figures exclude vacation and holidays and include other absences, whether planned or unplanned, that may create coverage and overtime costs.
Improve your absence-cost estimate
- Include coverage and productivity effects. The wage is the starting point. Coverage and productivity effects account for approximately one-fifth of the estimated total absence cost at the median multiplier and more than one-third at the mean.
- Choose a multiplier by role. An absence that coworkers can cover at little additional cost will have a different financial effect from one involving a specialized role with limited backup. Set multipliers by role when coverage needs differ.
- Compare absence patterns across several reporting periods, including changes in overtime, staffing capacity, and retention.
- Use absence-cost estimates for budgeting and evaluate attendance decisions separately. Some absence is legally protected leave. Keep protected leave separate from attendance point calculations and employment decisions.
Research and sources
4 sources. Most recent source check: 2 June 2026.
- Nicholson, Pauly, Polsky, Sharda, Szrek, and Berger, Measuring the Effects of Work Loss on Productivity with Team Production. Health Economics, 2006, volume 15, pages 111 to 123. Peer-reviewed research examining absence costs across 35 jobs. Reports a median wage multiplier of 1.28 and a mean of approximately 1.61. Examines how replacement difficulty, team dependence, and time-sensitive work affect costs. pubmed.ncbi.nlm.nih.gov/16200550
- U.S. Bureau of Labor Statistics, Current Population Survey, Household Data Annual Averages, Table 46, Absences from work of employed full-time wage and salary workers. Reports the 2025 absence rate of about 3.2% overall, including about 2.2% for illness or injury. It also carries the lost worktime rate, about 1.7% of usual hours, and the definitions used here. The 2025 figures are an 11-month average that excludes October. bls.gov/cps/cpsaat46.pdf
- CDC Foundation, Worker Illness and Injury Costs U.S. Employers $225.8 Billion Annually (2015). Reports estimated annual productivity losses of $1,685 per employee and $225.8 billion nationally. cdcfoundation.org, Worker Illness and Injury Costs
- SHRM, Absenteeism: Measure Costs, Adjust Incentives, Change Behaviors. A practitioner summary that surfaces the Nicholson mean multiplier of 1.61 across 35 job types. Explains how team dependence can increase the cost of an absence. shrm.org, absenteeism: measure costs
Common questions
How do you calculate the cost of absenteeism?
Multiply daily pay or the value of lost output by a team-and-coverage factor. Then add the estimated costs across all absence days. The multiplier accounts for expenses beyond daily pay, including overtime coverage and the effect on team productivity. Research puts it around 1.6 on average, below 1 where the work is easily covered and above 2 for team-dependent or hard-to-replace roles. Show direct pay, coverage costs, and productivity effects separately.
What does one day of absence cost?
On average, more than the day’s pay. For a $52,000 salary that is about $200 a day in wages. At the research average of 1.6 times daily wages, the estimated total cost is approximately $320. The estimate may be higher for specialized or time-sensitive roles and lower when coworkers can cover the work with little additional expense.
How many workdays are lost to absence?
The 2025 BLS lost-worktime rate is equivalent to approximately 4 to 5 days annually per full-time employee, including roughly three days associated with illness or injury. The figures cover 11 months. Compare them with your own workforce records when preparing budgets.
Can you discipline an employee for being absent?
Employers can address attendance concerns through a consistently applied policy. Protected leave cannot be counted against the employee. Before assigning attendance points or taking action, review whether the absence involves the FMLA, the ADA, the Pregnant Workers Fairness Act, workers' compensation, military leave, jury duty, or state or local sick leave, and document the reason for the absence.
Tools for the next step
Enter payroll figures, absence days, and a coverage multiplier to estimate direct and indirect costs. The $29 workbook adds department-level scenarios.
$29Set attendance point values and thresholds, record events, and keep protected absences separate from point totals.
$29Review employee turnover and absence costs together to understand their combined effect on staffing expenses.
$59Estimate annual absence costs using daily pay, absence days, and a coverage multiplier.
FreeSet attendance point values and discipline thresholds, then enter employee attendance incidents.
FreeChoose a preset, adjust point values and discipline thresholds, and print a one-page attendance policy that excludes protected leave.
Free
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