Why Offering Sick Pay is a Smart Move for Businesses.

As a small business owner in the UK, you know that attracting and retaining top talent is key to staying competitive. While Statutory Sick Pay (SSP) is a legal requirement, many forward-thinking small businesses go beyond the minimum to offer **enhanced sick pay**—and for good reason. Providing better-than-average sick pay can improve employee wellbeing, boost productivity, and even save your business money in the long run.

In this post, we’ll explore:

1. **What is Sick Pay in the UK? (SSP vs. Enhanced Sick Pay)**
2. **Why UK Small Businesses Should Consider Enhanced Sick Pay**
3. **How Sick Pay Improves Workplace Culture & Retention**
4. **Addressing Common Concerns About Costs**
5. **How to Implement a Sick Pay Policy in Your UK Business**

Let’s get started!

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What is Sick Pay in the UK? (SSP vs. Enhanced Sick Pay.

### **Statutory Sick Pay (SSP) – The Legal Minimum**
– **Current Rate (2024):** £116.75 per week (for up to 28 weeks).
– **Eligibility:** Employees must earn at least £123 per week and be off work for **4+ consecutive days** (including non-working days).
– **Waiting Period:** No SSP is paid for the first **3 qualifying days** of sickness.

While SSP provides a safety net, many employees—especially those on lower wages—struggle financially when ill.

### **Enhanced Sick Pay – Going Beyond SSP**
Some UK businesses offer **additional sick pay**, such as:
– **Full pay for a set period** (e.g., 1-4 weeks).
– **Graduated schemes** (e.g., 4 weeks full pay, then 4 weeks half pay).
– **Flexible sick leave** (e.g., mental health days included).

For small businesses, even a modest **top-up to SSP** can make a big difference in employee wellbeing.

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## **2. Why UK Small Businesses Should Consider Enhanced Sick Pay**

### **✅ Healthier Workforce & Faster Recovery**
When employees can afford to take time off, they recover properly—reducing long-term absences and preventing workplace illness spread.

**UK Fact:** Presenteeism (working while sick) costs the UK economy **£15-30 billion per year** in lost productivity (CIPD).

### **✅ Reduced Presenteeism & Higher Productivity**
Employees who drag themselves into work while sick are **less productive** and more likely to make mistakes. Offering full pay (or close to it) for short-term sickness encourages staff to rest and return at full strength.

### **✅ Lower Staff Turnover & Recruitment Costs**
Replacing an employee can cost **£3,000–£12,000+** (depending on role). Workers who feel financially secure during illness are more loyal.

**Stat:** 72% of UK employees say good sick pay policies **increase job satisfaction** (YouGov).

### **✅ Competitive Edge in Hiring**
With many UK businesses offering only SSP, enhanced sick pay can help you **stand out**—especially for skilled workers who have other options.

### **✅ Better Workplace Culture & Employee Engagement**
A supportive sick pay policy builds trust, reduces stress, and fosters a **positive work environment**—key for small teams where morale matters.

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How Sick Pay Improves Workplace Culture & Retention.

### **🔹 Builds Trust & Loyalty**
Employees who know they’ll be supported during illness are more committed to their employer.

### **🔹 Reduces Financial Stress**
SSP (£116.75/week) is often not enough to cover living costs. Enhanced sick pay prevents employees from choosing between health and bills.

### **🔹 Encourages Open Communication**
When staff aren’t afraid to take sick leave, they’re more honest about their health—reducing last-minute absences and burnout.

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Addressing Common Concerns About Costs.

### **💡 The Financial Benefits Outweigh the Costs**
✔ **Fewer long-term absences** (employees recover faster).
✔ **Lower recruitment costs** (higher retention).
✔ **Reduced presenteeism** (healthier, more productive teams).

### **💰 Making Enhanced Sick Pay Affordable**
– Start small (e.g., **1-2 weeks full pay per year**).
– Use a **graduated scheme** (e.g., full pay for 2 weeks, then half pay for 2 more).
– Offer **mental health days** as part of sick pay.

**Example:** A small business with 8 staff offering **13 weeks full sick pay** might spend **£2,000-£4,000/year**—far less than replacing even one employee. Ask us for a specific quote as all businesses are different

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How to Implement a Sick Pay Policy in Your UK Business.

### **📝 Step 1: Define Your Policy**
– Will you offer **full pay, part pay, or a mix**?
– How many days/years of service are required?
– Will you include **mental health & family care**?

### **📢 Step 2: Communicate Clearly**
– Add the policy to your **employment contracts & handbook**.
– Explain **how to report sickness** (e.g., call manager by 9am).
– Train managers to handle requests **fairly & consistently**.

### **⚖️ Step 3: Stay Compliant with UK Law**
– Ensure SSP is paid correctly (HMRC guidelines).
– Consider **occupational health support** if absences become frequent.

### **📊 Step 4: Review & Adjust**
Track sick leave usage and employee feedback. Adjust if needed (e.g., adding mental health days).

When you are ready to discuss implementing a Sick pay Scheme, get professional advice from experts. We offer Free advice and set up of Employee Benefit Schemes, we do not charge anything as we receive payment direct from the chosen insurer for setting up the scheme on their behalf.

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Final Thoughts: Sick Pay is a Win-Win for UK Business small or large.

While SSP meets legal requirements, **enhanced sick pay** can:
✔ **Reduce absenteeism & presenteeism**.
✔ **Improve employee loyalty & recruitment**.
✔ **Create a healthier, happier workplace**.

Even a **small top-up to SSP** can make a big difference. If you haven’t yet, now’s the time to consider how better sick pay could benefit your business.

**Need help setting up a Sock Pay Employee Benefit scheme?** We Offer Free Advice and as independent Insurance advisers, we not charge anything for setting up your Employee Benefit Sick Pay scheme. We receive payment for the chosen insurer, so there is not cost to you as a business plus at time of writing Employee Benefit schemes are an allowable expense( please conform with your Accountant, as we do not offer tax advice)

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### **📌 Key Takeaways for UK Businesses:**
– SSP is the **legal minimum**, but many employees struggle on £116.75/week.
– Enhanced sick pay **reduces turnover & boosts productivity**.
– Even **1-2 weeks full pay** can improve morale & loyalty.
– A clear policy **prevents misunderstandings** and supports staff wellbeing.

By investing in your team’s health, you’re investing in **your business’s future success**.

Get in touch now and see how we can help you and answer any questions

#UKBusiness #SickPay #EmployeeBenefits #HRUK #SmallBusinessUK