if the pad is 2-3mm thick and or the material has broken away, it needs replacing.
measure the discs thickness.
if the thinnest section is 17-18mm, it still has enough meat left. minimum is 16mm.
if the disc face has severe rippling scoring and the edge of the pads have left a radius lip, either have the disc remachined flat or replace the discs before fitting the new pads.
damn that piston boot has been obliterated. imo the caliper will require an overhaul. take out, clean & inspect the piston closely. if the chrome plated sealing surface is degraded in any way (chrome chipped off or rusted), replace the piston & seal.
while replacing the piston boot, you may as well get a full caliper service kit for £8-10 to replace all the rubber components/seals tbh.
clean & regrease the sliding guide pins only with non-petroleum lube like Red rubber grease so the rubber doesn't swell & seize.
if it's too much work, could get a new or used caliper.