Employer’s take note! New Sick Pay Policy: Low-Paid Workers to Receive 80% of Salary from Day One of Illness
In a significant move to support low-paid workers in the UK, the government has announced that more than 1 million workers will now be entitled to 80% of their weekly salary as sick pay from the first day of illness. This change aims to provide financial security to those who are most vulnerable when they fall ill.
Current Statutory Sick Pay System
Under the current system, employees must be ill for more than 3 consecutive days and earn an average of at least £123 per week to qualify for statutory sick pay (SSP). The SSP rate is currently set at £116.75 per week.
Government’s New Plan
The new policy now seeks for low-paid workers will receive either 80% of their average weekly earnings or the current SSP rate, whichever is lower
Initial Thoughts
- Low-paid workers will have immediate financial support which will reduce the stress of losing income due to sickness.
- Potential increases in staff absenteeism, as workers might be more inclined to take sick leave knowing they will receive a significant portion of their salary.
- Big impacts on small businesses that often struggle to find shift cover at short notice which could now lead to more disruption for customers.
- An administrative burden on small businesses that now how to manage the new sick pay policy.
Overall, while the policy aims to support low-paid workers and improve their financial security, it also presents challenges that employers, especially smaller ones, will need to navigate.
If you are an employer or employee affected by the above issue and want advice or support in connection with the same, or any employment law or HR issues more generally, please do not hesitate to contact us on 01206 239761.
