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Should Employees Be Allowed to Use Sick Time for a Mental Health Day?

Written by Megapay | Apr 28, 2025 6:21:55 PM

When you think of a sick day, you probably think of someone battling a bad cold, a stomach bug, or something else you can clearly see. But what about the struggles you can’t see? Like feeling overwhelmed, overly anxious, or completely burned out?

Should your employees be able to use their sick time for a mental health day?

At Megapay, we believe the answer is a definite yes.

Stress, anxiety, and mental health struggles can hit someone just as hard as a physical illness. Giving people the space to rest and reset can prevent bigger problems down the road and help create a healthier, more productive workplace for everyone.


What is a Mental Health Day?

A mental health day is time off, “specifically for self-care,” giving employees the chance to recharge emotionally and mentally. It’s not about slacking off or taking a freebie day. It’s about stepping back before stress turns into something much much worse.

Employees might need a mental health day after a big deadline, during a rough patch in their personal lives, or simply when they’re feeling drained. Just like your body needs rest to recover from a cold, sometimes your mind needs a day to catch its breath too.

Mental Health Days Are Good for Business

Supporting mental health isn’t just the right thing to do for your team, it’s smart business too.

When employees are encouraged to prioritize their mental health, they come back sharper, more motivated, and ready to do their best work. It also builds trust. People want to stay at companies that truly care about them—not just when they’re hitting goals, but when they’re struggling too.

Plus, openly supporting mental health helps break down the old stigma. It makes it easier for someone to raise their hand and ask for a break before things get worse.

A workplace that embraces mental health days is stronger, healthier, and better prepared for the long run.


Using PTO for Mental Health Days

One of the simplest ways to show your support? Let employees use their paid time off (PTO) for mental health. This way, they don’t need to pretend they are actually sick when they just need a breather!

It’s worth saying this out loud to your team too. Make it clear that mental health is just as important as physical health. The more you normalize it, the more comfortable people will feel asking for what they need.

 

What If Your Company Doesn't Offer PTO?

Even if you don’t offer PTO or formal sick leave, there are still ways to support mental health. You might allow unpaid leave for self-care days, or even offer a few designated “wellness days” a year.

But even more important than policies? Culture.

If your team knows they can speak up without judgment, they’ll be much more likely to get the help they need before their problems snowball. Encourage open conversations about stress, burnout, and mental health. 

Also, keep in mind — in some states, the laws are changing. New York, Connecticut, and others are expanding sick leave laws to specifically include mental health. Staying compliant isn’t just smart... it shows your employees you’ve got their backs!

 

Using PTO for Mental Health = Yes!

Letting employees use sick time for mental health days isn’t just a nice gesture, it’s essential.

When you make mental health part of your company culture, everyone wins: employees feel supported, teams get stronger, businesses grow.

At the end of the day, when you show your people that their well-being matters, you’re building something better, together.

Need a hand keeping up with HR rules and compliance changes? Megapay has your back, so you can stay focused on what matters most — your people.