NHS Sick Pay Entitlements
NHS sick pay depends on your length of service:
| Service Length | Full Pay | Half Pay |
|---|---|---|
| Less than 1 year | 1 month | 2 months |
| 1–2 years | 2 months | 2 months |
| 2–3 years | 4 months | 4 months |
| 3–5 years | 5 months | 5 months |
| 5+ years | 6 months | 6 months |
The gap: Even with 5+ years service, after 12 months of illness your NHS sick pay drops to zero. The average income protection claim lasts 4–6 years. Without personal IP, you would have no income for most of that period.
NHS Pension Ill-Health Retirement
The NHS Pension provides ill-health retirement, but it has major limitations:
- Requires permanent incapacity – Not available for temporary illness (even lasting years)
- Two tiers: Tier 1 (cannot do your NHS job) gives accrued pension + 50% of prospective pension. Tier 2 (cannot do any work) gives accrued + 100% of prospective pension
- Application takes months and requires Occupational Health assessments
- Not guaranteed – Applications can be declined
Why NHS Workers Need Personal IP
Income protection fills the gaps that NHS benefits leave:
- Starts paying after your sick pay ends (set your waiting period accordingly)
- Covers temporary as well as permanent inability to work
- Pays until you recover, not limited to a fixed period
- Covers up to 60% of your income, including unsocial hours payments and overtime
- Is portable – stays with you if you leave the NHS
How to Set Up IP as an NHS Worker
- Waiting period: Match to your sick pay – 26 weeks (6 months) for those with 5+ years service reduces premiums significantly
- Cover amount: Up to 60% of your total income (including enhancements for unsocial hours)
- Definition: “Own occupation” – pays if you cannot do your specific NHS role
- Term: Until your NHS pension age (typically 67–68)
Frequently Asked Questions
Yes. Sick pay maxes at 12 months. After that, income drops to zero. Average claim: 4–6 years.
26 weeks for 5+ years service. Matches when sick pay drops to half/zero.