Statutory Sick Pay

Statutory Sick Pay (SSP) is a payment that employers are legally required to provide to eligible employees who are unable to work due to illness or injury.

Eligibility Criteria

An employee must:

• Have an employment contract with their employer, regardless of whether they are full-time, part-time or on a fixed term contract
• Have been off work due to illness or injury for at least four days in a row
• Earn at least an average of £123 per week

Where an employee does not qualify for SSP, an employer should provide them with a SSP1 form to give to their local benefits agency.

Calculation of SSP

The current rate of SSP is £109.40 per week and is paid for up to 28 weeks of absence.

Employers may offer more generous sick pay schemes than SSP. For example, they may offer full pay for a certain period or a higher rate of sick pay than the statutory minimum.

Proof of sickness

Employees can self-certify themselves for seven days or less, thereafter they should provide their employer with a ‘fit note’ (sometimes called a ‘sick note’) if they have been absent for seven days or more. The seven days will include non-working days.

Offset SSP

Since the introduction of Employment Allowance in 2014 employers can no longer claim back SSP. This means that the cost of SSP is no longer offset against an employer’s PAYE liability.

Employment Allowance is a scheme that allows eligible employers to reduce the amount of National Insurance (NICS) that employers need to pay.  Since April 2023 eligible employers can reduce up to £5,000 per year of their employers NICs.  Read our blog on Employment Allowance for more information.

If we manage your payroll for you, we take care of the SSP payment calculations and manage your Employment Allowance claim.  To find out more about our payroll services, please contact Julie Hunter on 0131 317 7377 or email Julie.hunter@jsca.co.uk

The information in this blog provides only an overview of HMRC guidance and legislation in force at the date of publication and no action should be taken without consulting the detailed HMRC guidance and legislation or seeking professional advice.  Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this blog can be accepted by the firm.

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