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Pension Analysis McCloud Remedy Contingent Decision NHS Sick Pay Benefits
Introduction To Financial Planning
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NHS Sick Pay Benefits

NHS sick pay combines full pay and half
pay depending on your length of service.

Length of Service » Sick Pay Entitlement
During your first year of service 1 month full pay 2 months half pay
During your second year of service 2 months full pay 2 months half pay
During your third year of service 4 months full pay 4 months half pay
During your fourth and fifth years of service 5 months full pay 5 months half pay
After 5 years of service 6 months full pay 6 months half pay

Key Points You Should Know

Sick pay is based on actual NHS reckonable service

Entitlements are normally based on sick leave taken in the preceding 12 months.

"Full pay" means your normal contractual pay

This usually includes enhancements, basic salary, and most allowances.

"Full pay" means your normal contractual pay

This usually includes enhancements, basic salary, and most allowances.

"Half pay" is paid on top of Statutory Sick Pay (SSP)

You do not drop to SSP alone unless your contractual entitlement ends.

Accrued sick pay resets after 12 months

Entitlements are normally based on sick leave taken in the preceding 12 months.

COVID provisions, special leave and injury allowances may differ

Some roles qualify for additional protection under occupational health schemes.

Doctors & Dentists (non-AfC) have slightly different entitlements

If you want the hospital doctor or GP practice version, I can outline that too.

Comparison Table:
NHS Sick Pay vs. Income Protection

A clear, client-friendly comparison you can use in brochures or meetings.

Feature NHS Sick Pay (Doctors & AfC Staff) Income Protection
Duration of payout Up to 12 months
(6 full + 6 half after 5 years)		 2 months half pay
During your second year of service 100% → 50% of salary Typically 50–75% of gross income
Taxed? Yes (PAYE applies) Tax-free monthly payments
Eligibility NHS employment Available to anyone meeting
underwriting criteria
Triggers Illness or injury preventing work Medically verified inability to work
(own occupation)
After 12 months Sick pay stops Continues if still medically unable to work
Protects extra income? Usually no
(overtime/locum shifts rarely protected)		 Yes — can insure broader
income depending on policy
Inflation protection No Optional index-linking
Role of employer Trust pays the benefit Provider pays the benefit

Key insight: NHS sick pay provides excellent short-term protection, but income protection is essential for medium- and long-term security.