Protection through your job

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Protection Through Your Job

By law, your employer must usually pay you at least a minimum amount if you are off work sick for more than three days; this is called Statutory Sick Pay (SSP).

In 2000-1, SSP was set at £60.20 a week. It is taxable just like ordinary pay, so income tax and National Insurance may be deducted from it if you also have some other income. SSP is payable for up to 28 weeks.

Lower earnings limit

If you earn less than the 'lower earnings limit', a figure set by the government each year, equal to £67 a week (or its equivalent) in 2000-1, your employer does not have to pay you SSP.

A few other groups of employees are not covered by the scheme, including workers over state pension age, anyone on a contract lasting less than three months and people working for overseas employers. If your employer does not pay you SSP, he or she must give you a claim pack SSP1.

This includes a claim form for incapacity benefit, which you might be able to get instead.

Sick pay scheme

Your employer may run a sick-pay scheme that is more generous than the minimum SSP: for example, maintaining your full pay for several months and then perhaps half-pay for a few more. Some employer’s take out insurance to provide income for sick employees over a longer period, this is called 'group income protection insurance'.

The insurance works in a similar way to the private insurance you can arrange for yourself, except the income it pays out is taxable. Income protection insurance through your job is a fringe benefit that is usually tax-free.

Early retirement

If you are unlikely to be able to return to work at all, you may qualify for early retirement on the grounds of ill health. This could trigger an immediate pension from your employer's pension scheme if it runs one.

Check your contract of employment to see what arrangements apply to you.