Going on long-term sick leave raises understandable concerns about pension contributions. The key point is that your pension pot remains yours throughout — it stays invested and no one can take it from you. What changes during sick leave is how much is going into it each month, and that depends directly on what you are being paid.
How Contributions Change as Sick Pay Reduces
Most workplace pensions calculate contributions as a percentage of earnings. As your sick pay reduces, so do the contributions based on it.
| Phase of sick leave | Pay received | Typical pension contribution position |
|---|---|---|
| Full pay (contractual sick pay) | Normal salary | Normal contributions from both employer and employee |
| Half pay (contractual) | 50% of salary | Contributions reduce to 50% |
| Statutory Sick Pay only | £116.75/week (2026/27) | Contributions may continue at SSP level |
| No pay | £0 | Contributions typically stop (unless contract guarantees otherwise) |
Statutory Sick Pay (SSP) 2026/27: £116.75/week, payable for up to 28 weeks.
Checking Your Employment Contract
Some employers — particularly in the public sector, large corporates, or those with strong employment terms — maintain full employer pension contributions throughout sick leave, even when pay has reduced. Your employment contract or staff handbook will specify:
- How long full pay continues
- What rate sick pay reduces to and when
- Whether employer pension contributions are maintained beyond the pay reduction
If your contract is silent, the default is that contributions follow pay.
Your Pension Pot During Sick Leave
Regardless of whether new contributions are being made, your existing pot:
- Remains fully invested
- Continues to grow (or fall) with investment returns
- Cannot be accessed by your employer
- Does not expire or lapse during absence
Auto-Enrolment and Re-Enrolment on Return
If you return to work after long-term sick leave, you should be automatically re-enrolled into your workplace pension if you were previously a member. If you had opted out or ceased membership during absence, your employer must re-enrol you at the next statutory re-enrolment date (every three years). You can opt out again if you wish.
Income Protection — Bridging the Gap
If you are concerned about the impact of sick leave on your pension contributions, income protection insurance is the most direct solution. It replaces a portion of your income (typically 50–70%) during periods when you cannot work due to illness or injury — allowing you to maintain contributions from that replacement income.
See our Income Protection hub for a full explanation of how policies work.
NI Credits and the State Pension
During sick leave, your NI record may be protected:
- If you receive SSP, you continue earning NI qualifying credits (SSP counts for NI purposes)
- If you claim Employment and Support Allowance (ESA) or Universal Credit (limited capability for work), you receive NI credits
- These protect your State Pension record even during long gaps from employment
Worked Example
Scenario: Mark has been off work for 7 months with a back injury. His employer provides 3 months’ full pay, then SSP for the remaining 4 months.
- Months 1–3: normal salary contributions continue. Monthly pension input (employee + employer): £320
- Months 4–7: only SSP received (£116.75/week). Employer contributions based on SSP: approximately £14/month. Mark’s employee contribution: approximately £23/month
- Total pension contribution over 7 months: approximately £1,105 vs £2,240 if he had worked
Mark’s pot remains invested throughout. When he returns to work, normal contributions resume. He considers whether to make one-off additional contributions to partially fill the gap.