Revolutionary Sick Pay Reform: Low-Paid Workers to Receive 80% Salary from Day One

The UK government has announced a significant reform to sick pay, granting over one million low-paid workers the right to receive 80% of their weekly salary from the very first day of illness. Currently, workers must be ill for over three consecutive days and earn at least £123 per week to qualify for statutory sick pay.

Work and Pensions Secretary Liz Kendall emphasized that this change is crucial to ensure that no one has to choose between their health and their income. The British Chambers of Commerce acknowledged this new 80% sick pay rate as a reasonable compromise but raised concerns that the immediate entitlement could lead to increased absenteeism, posing challenges for smaller businesses in staffing.

With the new provisions, approximately 1.3 million low-wage earners will benefit from either 80% of their average salary or the current statutory sick pay, whichever is lower, which stands at £116.75 per week.

Alongside this change, there have been calls from advocacy groups for an increase in the sick pay replacement rate to at least 95% for low earners. The Trades Union Congress (TUC) general secretary, Paul Nowak, urged the government to continue revising the sick pay framework beyond the 80% proposal.

These adjustments to sick pay are part of broader updates proposed in the Employment Rights Bill, which aims to enhance worker rights, improve living standards, and reduce reliance on government benefits. The bill also suggests allowing more flexible working arrangements and unpaid parental leave.

Despite this progressive step, the reforms have faced backlash from businesses concerned about the potential adverse effects on economic growth and employment rates. In addition, recent reports indicated that a proposal concerning employees’ right to disconnect from work communications out of hours has been eliminated from the bill to reduce compliance costs for businesses.