Entitlement to statutory sick pay (SSP) is set to change with the implementation of the Employment Rights Bill, which was presented to Parliament last month. This will eventually see the elimination of the three ‘waiting days’ that apply under the existing arrangements and the extension of the provision to all workers regardless of earnings. In practice however, many employers already offer their staff a certain amount of enhanced or ‘occupational’ sick pay (OSP). Research we conducted among 136 organisations in August and September this year found that where they do so, such policies are usually the same for all eligible staff, although 30% of respondents apply separate policies to different groups of staff.
Sick pay entitlement generally increases with length of service and provision typically takes the form of a number of weeks’ full pay, sometimes followed by a period at half pay. (Where policies combine full and fractional weeks of pay, we calculated a ‘full-week equivalent value’ for comparison purposes.) Across the whole sample of ‘all-staff’ policies, the median value of occupational sick pay is the equivalent of 6.5 weeks’ full pay during their first year of employment post-probation, rising to 26 weeks’ full pay for employees with five years’ service. It is relatively rare for OSP policies to operate waiting days, with just 12% of respondents doing so. The most generous ‘all-staff’ OSP policies are found in the public sector while private services employers offer the least favourable terms.
About the report
This report is based on responses from 136 (predominantly medium-sized and large) organisations to a survey conducted by IDR in August and September 2024 looking at employers’ sick pay provision and policies. The full report, which includes a detailed breakdown of OSP by sector, is available for £449 (£404 to subscribers) from our website or by contacting sales@incomesdataresearch.com.
