Major changes to sick pay rules will see more than one million people on low wages get 80% of their weekly salary from the first day of illness.
Under current rules, you qualify for statutory sick pay if you have been ill for more than three consecutive days and earn at least £123 a week on average. But new Government plans mean about 1.3 million people will get whichever is lowest out of 80% of their average weekly earnings, or statutory sick pay.
Statutory sick pay is currently worth £116.75 a week, but is rising to £118.75 in April. Ministers say some people will be up to £100 better off a week under the new rules. The changes are expected to come in next year and form part of the Employment Rights Bill.
Work and Pensions Secretary Liz Kendall said: “For too long, sick workers have had to decide between staying at home and losing a day’s pay, or soldiering on at their own risk just to make ends meet. No-one should ever have to choose between their health and earning a living, which is why we are making this landmark change. The new rate is good for workers and fair on businesses as part of our plan to boost rights and make work pay, while delivering our plan for change.”
The policy was described as a “fair compromise” by the British Chambers of Commerce, which represents businesses. However, the trade body said bringing forward sick pay to the first day of absence could hit companies. Jane Gratton, deputy director of public policy at the BCC, said: “Employers often struggle to find shift cover at short notice, leading to disruption for customers. The Government’s impact assessment did not produce compelling evidence on the day-one rights issue, so there may yet be unforeseen consequences.”
Paul Nowak, secretary-general of the Trades Union Congress, said: “We urge ministers in future to raise the replacement rate for the lowest earners beyond 80% and undertake a wider review of the statutory sick pay rate.”
You could be entitled to sick pay if you’re employed, meaning your employer takes off tax and National Insurance from your pay. This can include full-time, part-time and zero hours workers. Your employer might also pay you their own sick pay. You’re not entitled to sick pay if you’re self-employed.
If you’re too ill to work, check with your employer if they need something in writing in order for them to process your sick pay. There is a form on the GOV.UK website called Form SC2 which you may need to fill out. You must give your employer a fit note if you’re off work for more than seven days in a row.
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