New research has found that three in four employees would need to make cutback within one month if relying on statutory sick pay
Legal & General’s Workplace Wellbeing research has found that 76% of employees believe they would last less than a month before having to make cutbacks on essentials if their salary was replaced with Statutory Sick Pay (SSP).
Worryingly, a further 49% of full-time employees surveyed thought they would last less than two weeks before making cutbacks if they had to rely on SSP, which currently sits at £88.45 per week. The research highlights that this is a genuine concern that employees need to think about, with over half (53%) of employees having been off work long-term themselves or knowing someone who has been.
Additionally, nearly a fifth of the employees surveyed (19%) did not know if their employer paid additional sick pay on top of SSP. Statutory sick pay is paid by an employer to a qualifying employee who has been off work sick for four or more days in a row (including non-working days) and can be payable for up to 28 weeks. Some employers offer additional sick pay but most do not, highlighting the need for employees to fully understand where they would stand should they be unable to work.
MartinuNoone, managing director, Legal & General Workplace Health and Protection, commented: “Many employees don’t realise the impact a long-term absence from work, lasting over four weeks, could have on their finances. Our Workplace Wellbeing research shows that over three out of four employees could not last a month on Statutory Sick Pay without having to make cutbacks. It also shows that this is a very real risk, with over half of the employees surveyed either knowing someone who had been off work long-term or had been off long-term themselves.
“Our research highlights the need to raise awareness amongst employers and employees of this issue and the role that Group Income Protection can play in providing a solution. It typically costs less than 1% of payroll yet most employers (and employees) think it costs a lot more.
“It is vital that if someone is unfortunate enough to be off work with a long-term illness or injury that they have policies in place which provide an income and help them recover, making life better for them and their family whilst they focus on returning to work.”