Over three-quarters (77%) of staff in the UK could not afford to meet their living costs if their income stopped tomorrow, research has warned.
PMI Health Group found of 600 people surveyed, 46% said their employers would not continue to pay them their full salary if they were off sick or injured for three months or more.
The current level of Statutory Sick Pay (SSP) is £87.55 per week. The UK average weekly wage in June 2014 was £449.
SSP has to be paid for employees earning at least £111 gross per week. By law the payments of SSP have to be maintained for 28 weeks, claims can begin after the 4 days of sickness.
The research was conducted following the recent change in legislation meaning employers can no longer claim back any SSP paid to staff.
Now only under certain circumstances, such as a high proportion of employees being off sick at the same time, can companies claim the cost back.
Mike Blake, director, PMI Health Group said, "The study highlights a protection gap in the UK, as half of all workers do not have a sufficient level of protection in the event of long-term illness" "Now that the employer can't claim back the cost of statutory sick pay, it's another cost they have to swallow.
"Consequently, more companies may look to transfer the risk to the insurer so they have a certainty over what absence will cost them each year.
Blake concluded: "This, in turn, could see a rise in policies such as sick pay insurance, which allows the employer to insure anything from the statutory amount to full salary. Although the employer will still foot the bill for sick pay, they are provided with certainty over what absence will cost each year."
