In 2024, the average number of sick days taken within each UK company totalled 128, a 55% increase in sickness-related absences since 2019. While it is inevitable that employees will occasionally take sick leave, it is imperative as an employer that you identify and monitor common causes of absence and follow legal compliance.

As an employer, understanding Statutory Sick Pay (SSP) is vital for ensuring compliance with UK employment law and providing essential support to your employees during periods of illness. Managing SSP correctly can help maintain a transparent workplace culture, reduce absenteeism, and protect your business from potential legal challenges.

This guide offers a comprehensive overview of Statutory Sick Pay, who qualifies for payments, how to make payments, and your obligations as an employer.

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What is Statutory Sick Pay?

Statutory Sick Pay (SSP) is a legal entitlement in the UK, ensuring that employees who are too ill to work receive a minimum level of income. SSP is not a replacement for any internal employee sick pay schemes or insurance policies, but rather a minimum standard of sick pay entitlement, applicable to all UK employees. SSP is intended to provide financial support during short-term illnesses and is paid directly by the employer in the same way as their usual wages, deducting any applicable tax and national insurance.

Employers are responsible for paying SSP and must do so at the statutory rate unless their company’s sick pay scheme offers a higher payment.

How much is Statutory Sick Pay?

The UK’s current Statutory Sick Pay rate is £116.75 per week as of 6th April 2024. This rate is uniform across the UK and is paid for up to 28 weeks.

The amount an employee receives may vary depending on their work schedule, with sick payments only applicable for the days an employee usually works, known as ‘qualifying days’.

How is Statutory Sick Pay Calculated?

Statutory Sick Pay is calculated based on qualifying days, which are the days an employee would typically be working. To calculate SSP, an employer must:

  1. Identify Qualifying Days: Determine which days the employee usually works. These are the qualifying days for SSP.
  2. Determine Daily SSP Rate: Divide the weekly SSP rate (£116.75) by the number of qualifying days.
  3. Calculate Payment: Multiply the daily SSP rate by the number of qualifying days the employee is absent due to sickness.

For example, if an employee who works a five-day work week takes a whole week off work due to sickness, they are entitled to the full SSP payment of £116.75. If the employee is sick for only four days, the weekly payment would be as follows:

  • Weekly SSP 2024: £116.75
  • Daily SSP (Five-day working week): £116.75/5 = £23.35 per day
  • SSP for Four days: £23.35 x 4 = £93.40

The employee would receive £93.40 for the four qualifying days of sickness, with the one day they worked would be paid at their full daily salary.

Does an Employer Have to Pay Statutory Sick Pay?

As an employer, you must legally pay Statutory Sick Pay to eligible employees. This obligation is not optional.

Failure to comply with Statutory Sick Pay entitlement can lead to legal repercussions. It is, therefore, imperative that as an employer, you are fully aware of any responsibilities and that SSP is administered correctly.

The legal obligation for employers to pay SSP is set out in UK law under the Social Security Contributions and Benefits Act and the Statutory Sick Pay Regulations. The obligation applies regardless of the business size or the nature of the employee’s employment, whether full-time, part-time, or temporary.

Employers cannot ask employees to waive their right to SSP or offer alternative arrangements that are less favourable than the statutory requirement. The legal framework of Statutory Sick Pay ensures that all employees are protected by a minimum standard of income during periods of illness.

Who is Eligible for SSP from an Employer?

To qualify for Statutory Sick Pay, an employee must meet the following criteria:

  • Employment Status: The individual must be classed as an employee under UK employment law. This includes individuals on fixed-term contracts or working through an agency.
  • Earnings Threshold: The employee must earn at least £123 per week before tax (2024/25 rate). This threshold is known as the Lower Earnings Limit.
  • Notification of Sickness: According to the company’s internal policy, employees must inform their employer of their sickness and absence. If no specific policy exists, they must notify their employer within seven days of the start of the illness.
  • Length of Absence: The employee must be off work due to illness for at least four consecutive days, including non-working days. These four days are known as the ‘Qualifying Period’.
  • Start of Employment: The employee must have started work with the employer. There is no minimum length of employment required for SSP entitlement.

Who is Not Eligible for SSP from an Employer?

Certain individuals are not eligible for Statutory Sick Pay; these include:

  • Self-Employed Individuals: SSP only applies to employees. Self-employed individuals may be able to apply for Employment and Support Allowance (ESA). This is separate from SSP.
  • Low Earners: Employees earning less than £123 per week are below the Lower Earnings Limit and, therefore, do not qualify for SSP.
  • Maternity Leave: Employees who are receiving Statutory Maternity Pay (SMP) or Maternity Allowance (MA) are not eligible for SSP during their maternity leave.
  • SSP Allowance Limit: Employees who have already received a maximum of 28 weeks of SSP within a single period of sickness are no longer eligible for further SSP.
  • Overseas Workers: Employees working outside the EU or in countries that do not have social security agreements with the UK may not be eligible for SSP.

When Should an Employer Start Paying Statutory Sick Pay?

Statutory Sick Pay payments should begin from the fourth day of an employee’s sickness absence, provided the employee has informed you of their illness and absence. The first three days of sickness are known as ‘waiting days’ during which SSP is not payable.

If an employee has already taken sick leave within the last eight-week period, they have already served the applicable SSP ‘waiting days’. In this case, SSP payments should be paid from the first day of their subsequent sickness period. HMRC coins this ‘Linked Period of Sickness’. Illness that falls within eight weeks is seen as being linked, and therefore, any applicable ‘waiting days’ can be bypassed.

Do You Need to Ask for Proof of Sickness?

As an employer, you have the right to request proof of sickness from employees, but only after the first seven days of absence. For absences of seven days or less, employees can self-certify their sickness. This means they do not need to provide a doctor’s note but must still inform their employer of their illness.

After seven days, employers can ask for a fit note (previously known as a sick note) from the employee that must come from a GP or hospital. The fit note may include recommendations for workplace adjustments or indicate whether the employee is fit for work under certain conditions.

Employers should have a clear policy on when and how proof of sickness is required, and this policy should be communicated to all employees.

How Do You Pay Statutory Sick Pay?

Statutory Sick Pay is paid following the employee’s existing payroll process and should be treated like regular wages. This means that any payments are subject to tax and national insurance contribution deductions. Any SSP payments should be documented in the employee’s payslip, showing the SSP amount and any deductions.

As an Employer, you should ensure your payroll systems are correctly set up to handle SSP payments. Most payroll software will automatically calculate SSP based on payroll information. Still, manually inputted data, such as sickness start and end dates, must be correctly inputted to calculate SSP payments.

If you need assistance managing SSP payments, our payroll services can help. Get in touch with our team today to learn more.

Can You Claim Back SSP As an Employer?

Under UK rules, employers cannot reclaim Statutory Sick Pay from the government. This means that the business must absorb the cost of SSP. This can be a significant financial burden for small businesses, particularly during periods of high sickness absence. All Covid-19 SSP rebate schemes have ended.

It is important to differentiate Statutory Sick Pay (SSP) from Statutory Maternity Pay (SMP), as they operate under different rules regarding employer reimbursements. Employers can usually reclaim a significant portion of the Statutory Maternity Pay they pay through National Insurance contributions. This means that SMP is generally a recoverable cost for employers.

On the other hand, Statutory Sick Pay cannot be reclaimed in the same way. Employers are typically responsible for covering SSP costs themselves. Additionally, it is important to note that SSP cannot be paid to an employee already receiving SMP; in such cases, SMP takes precedence.


COVID-19 Pandemic SSP Exception

During the COVID-19 pandemic, the UK government introduced temporary measures that allowed certain employers to reclaim Statutory Sick Pay costs for coronavirus-related absences. This was an exception to the general rule and applied to employers with fewer than 250 employees.
Under this scheme, employers could reclaim up to two weeks of SSP for employees who were absent due to COVID-19, including those who were self-isolating or shielding. This measure was part of the broader government support package to help businesses cope with the financial impact of the pandemic. This scheme has ended, and there is no financial support for SSP payments from the government to businesses.

What Happens if Statutory Sick Pay Ends?

Statutory Sick Pay is payable for a maximum of 28 weeks. If an employee’s sickness extends beyond this period, they will no longer be eligible for SSP. It is the employer’s responsibility to inform the employee when their SSP is about to end and to provide them with an SSP1 form.

The SSP1 form allows employees to apply for Employment and Support Allowance (ESA) or other benefits once their SSP entitlement has been exhausted. Employers should issue this form at least seven days before the SSP ends or immediately if the employee has already been absent for 23 weeks.

After Statutory Sick Pay ends, employers should consider the following:

  • Long-Term Sickness Management: Review the employee’s condition and consider any adjustments that might facilitate their return to work. This could include flexible working arrangements, reduced hours, or changes to their role.
  • Company Sick Pay Schemes: If your company offers a sick pay scheme beyond SSP, you should ensure the employee understands their entitlement.
  • Redundancy or Capability Dismissal: In some cases, if an employee cannot return to work and no reasonable adjustments can be made, you may need to consider redundancy or capability dismissal. This should be handled carefully and in accordance with employment law to avoid claims of unfair dismissal.

Conclusion

Navigating Statutory Sick Pay is an essential part of being a responsible employer. By understanding your obligations, calculating payments correctly, and managing long-term sickness effectively, you can ensure that your business complies with UK employment law while supporting your employees during difficult times.

At DS Burge and Co, our team of experts is here to help you manage SSP, from calculating payments to handling complex payroll issues. We offer personalised business advice and support to ensure that your business runs smoothly.

Get in touch with us today to learn more about how we can assist you with Statutory Sick Pay, payroll management, and other accounting services.