What Is Sick Pay?

What Is Sick Pay?

Sick pay is the income employees receive when they’re unable to work due to illness. It ensures you have financial support during periods of ill health, reducing the stress of lost earnings.

The two main types of illness compensation are Statutory Sick Pay (SSP) and contractual sick pay. SSP is a government-mandated payment for eligible employees and is currently £109.40 per week for up to 28 weeks (as of 2023). Contractual sick pay, on the other hand, is provided by employers and varies based on individual workplace policies.

To qualify for SSP, you must earn at least £123 per week and have been off work for four consecutive days or more. Some employers offer enhanced sick pay schemes in addition to SSP, which may cover a greater portion of your regular income or extend beyond the 28-week limit.

Types Of Sick Pay

Understanding the types of sick pay helps you plan for financial stability during illness. The two main types in the UK are:

• Statutory Sick Pay (SSP)

SSP is a government-mandated payment for employees unable to work due to illness. Currently, it amounts to £109.40 per week for up to 28 weeks. You’re eligible if you earn at least £123 per week and are off work for four or more consecutive days. Employers are legally obligated to pay SSP if you meet these requirements, regardless of their own sick pay schemes.

• Company Sick Pay

Also known as contractual or enhanced sick pay, is offered at an employer’s discretion and outlined in your employment contract. Some employers provide full or partial pay for longer periods beyond SSP. These schemes often consider the duration of employment and company policies. If such a scheme exists, it supplements SSP, giving you greater financial support during illness. Always review your employment contract to understand the terms of any Company Sick Pay.

How To Qualify For

Understanding the criteria for this pay helps you secure financial support when unable to work due to illness. Eligibility depends on factors like employment status, income, and company-specific policies.

Eligibility Criteria For SSP

SSP applies if you’re employed, earning at least £123 per week, and have been off work for four or more consecutive days due to illness. It’s available to most workers, including part-time and agency employees. However, you won’t qualify if you’re self-employed or have already exhausted the 28-week SSP limit.

Certain restrictions apply, such as not being eligible if you’re receiving statutory maternity pay. Always provide medical evidence, such as a fit note, if your employer requests this.

Employer Policies On Sick Pay

Some employers offer contractual sick pay, also known as enhanced sick pay, in addition to SSP. These schemes vary widely, with some offering full pay for a specific period, while others offer reduced pay for extended illnesses. The terms and duration of these payments are set in your employment contract.

Check your company’s health-related leave payment policy in advance to understand what financial support is available. If your employer doesn’t offer contractual illness compensation, SSP remains the minimum entitlement by law. Regular communication with HR is vital to clarify benefit entitlements.

How Much Can You Receive?

The amount of illness compensation you may receive depends on whether you’re entitled to Statutory Sick Pay (SSP), contractual sick pay, or both. Understanding the details of each ensures you’re aware of your financial support during illness.

SSP Payment Rates

SSP is set by the UK government and provides a fixed rate of £109.40 per week, as of 2023. Payments can last for up to 28 weeks if you’re eligible. To qualify, you must earn at least £123 per week, be employed, and have been unable to work for at least four consecutive days. SSP is subject to tax and National Insurance deductions. Employers are legally obligated to pay SSP if you meet all the eligibility requirements.

Additional Company Benefits

Some employers offer enhanced illness compensation schemes, often referred to as Company Sick Pay, which may supplement SSP. These schemes vary widely by employer, with some providing full pay for a set period, such as the first few weeks of illness, and others offering partial pay or extended coverage beyond SSP’s 28-week limit. Terms depend on your employment contract, so reviewing it and discussing with HR ensures clarity. Enhanced benefits can significantly reduce financial strain if you’re off work for an extended period.

How Long Does Sick Pay Last?

The duration of this pay depends on whether you receive Statutory Sick Pay (SSP) or Company Sick Pay. SSP lasts up to 28 weeks for eligible employees, starting from the fourth day of illness. You must meet specific criteria, including earning at least £123 weekly, to qualify. After 28 weeks or if you no longer meet eligibility requirements, SSP stops.

Company Sick Pay schemes vary. Some employers offer full or partial pay for a set period, extending beyond SSP’s 28 weeks in certain cases. You can find details in your employment contract or by consulting your HR department. These schemes often consider employment length and individual policies.

If you’re unable to work after exhausting sick pay entitlements, other options like Employment and Support Allowance (ESA) may apply. Reviewing your contract and communicating with HR ensures awareness of the specific duration and terms of your health-related leave payment.

Conclusion

Understanding illness compensation is essential for safeguarding your financial well-being during times of illness. By familiarising yourself with both statutory and contractual pay schemes, you can ensure you’re fully aware of your rights and entitlements.

Take the time to review your employment contract and communicate with HR to clarify any uncertainties. Being proactive helps you stay prepared and reduces stress when dealing with unexpected health challenges.