A new benefits system for people in Jersey with long term health conditions will be introduced in 2027.
Long-Term Disability Allowance (LTDA) will replace Long-Term Incapacity Allowance (LTIA) and three other benefits.
Politicians have agreed an overhaul of the system.
Instead of awards increasing on a percentage basis, there will be three levels of payments.
There will also be a new way of assessing a claimant's 'loss of function' which will include assessing chronic pain, mental health and the lasting effects of cancer.
Social Security Minister Lyndsay Feltham says Jersey needs a more modern system.
"(LTDA) replaces the current system, which awards LTIA as a percentage ranging from 5% to 100%, with three levels of benefits.
"These correspond to the severity of a person's loss of function.
"I believe that having a benefit that pays at three clear levels will make the system fairer and easier for people to understand."
Social Security Minister Lyndsay Feltham
The new benefit will be paid for from the Social Security Fund, and the government says it is not intended as a way of making savings - describing it as being designed to be 'cost-neutral'.
Deputy Feltham says it will better reflect the impact of an illness or disability on a person's everyday life and seeks to help people of working age stay in employment.
"With the new system in place, I hope to see workers claiming the new benefit also able to remain in productive work, supporting the economy and fully participating in community life.
"The proposed approach is better suited to a benefit for working-age people because it can consider the specific factors that affect their ability to work and participate in everyday life.
"The island should be looking at what we can do to support people who want to stay in or return to work as opposed to assuming that our responsibility stops with the payment of a benefit."
States Members voted unanimously to approved the new benefit, which will be introduced in June 2027.
Review rules out benefits overlap for pensioner carers
Ignoring data protection may cause Jersey to 'lose our economy'
Draft law scraps time limits on abortions in Jersey
Divide over approach to gender guidance in schools
Three charities awarded £500 grants in community campaign
Ministers back principle of social media 'restrictions' for under 16s
Passengers rerouted through Jersey Airport departures
A total ban on disposable vapes in Guernsey and Jersey is poised to take full effect
