Group Income Protection

Group income protection is a policy taken out by an employer to cover a promise to provide sick pay to employees if illness or injury prevents them from working for a prolonged period as part of their absence / attendance programme.

Group income protection providers support employees to help them return to work with reasonable adjustments made by their employer but if the employee cannot work due to illness or injury the policy will pay a benefit of a proportion of their salary.

A group income protection policy will often also include some extra support services designed to help employers and employees alike on a daily basis – even if a claim is never made.

The benefit is paid to the employer and then passed on to the employee through the PAYE system. Generally, premiums paid by an employer can be offset against corporation tax and are not regarded as a benefit in kind.