The Government has announced changes to strengthen Statutory Sick Pay which will benefit more than one million employees across the UK as part of efforts to grow the economy.
Through the Employment Rights Bill, Government is strengthening Statutory Sick pay by removing the Lower Earnings Limit so that the safety net of sick pay is available to those who need it most. We are also removing the Waiting Period so that Statutory Sick Pay is paid from the first day of sickness absence.
As part of the Government amendments to the Employment Rights Bill tabled this week, it was announced low earners who find themselves ill will either receive 80% of their normal weekly earnings or the flat rate of Statutory Sick Pay (which will be £118.75 per week from April) – whichever is lower.
This means some of the lowest earners will be up to £100 better off per week, compared to the current system and employees will be able to take the time off work that they need to recover, so they can get better and remain in work rather than risk quitting altogether.
This new percentage rate strikes the right balance between providing financial security for employees who fall ill, and the cost to businesses – all while retaining the incentives for people to return to work. More information about the change to Statutory Sick Pay is available on GOV.UK, as well as the Government’s response to the Statutory Sick Pay consultation
