Three out of four employees overestimate the value of Statutory Sick Pay (SSP) according to research from Legal & General.
Only 24% of employees surveyed knew that SSP is currently less than £100 per week.
Average expected value of SSP was £143.20pw, which is 62% more than the actual amount.
SSP is currently £88.45 a week. It 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) for up to 28 weeks.
The research showed that three out of five Business Owners also thought SSP was £100 per week or more.
When informed of the true amount, 66% of employees thought it to be either "not that fair" or "not fair at all".
Some 26% of employees thought £88.45 per week to be "fair" and only 8% thought it to be "very fair".
The research was part of Legal & General's Working Lives research, which surveyed 2000 full-time employees and 200 Managing Directors or HR Managers from a range of different sized companies.
Martin Noone, managing director, Legal & General Workplace Health and Protection, said: "It cannot be overestimated how much of an effect being off work with a long-term illness or injury can have on someone's finances, so for less than a quarter of employees to know the actual value of Statutory Sick Pay is concerning.
"In many cases SSP will replace an employee's salary if off work long-term so it is vital they acknowledge how this change would impact their lives should it sadly occur."
He added: "Our Working Lives 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.
"As was outlined further in Wednesday's Budget, the Government's new "Help to Save" scheme to support low income employees is certainly an interesting development, and supports the belief that government and industry should work closer together to provide solutions for employee income protection."
