What is Statutory Sick Pay?
Statutory Sick Pay (SSP) is money that is paid to employed individuals who are unable to work due to illness. In the UK it's a legal requirement for employers to pay this to eligible employees and workers.
It can be paid for a maximum of 28 weeks as a financial safety net whilst employees are off unable to work.
How much is Statutory Sick Pay?
If you're eligible for SSP, you can get £118.75 a week for the full 28 weeks as standard - you may receive more if your contract specifies it. You'll be covered for all of the days that you were scheduled to work, except for the first 3 - these are known as the "waiting days".
Statutory Sick Pay is paid in the same way as normal wages - eg weekly or monthly - and tax and National Insurance will still be deducted.
Who's eligible for Statutory Sick Pay?
SSP is available to all employees in the UK who meet the following criteria:
They must be classed as an employee and must have done some work for their employer
They must have been ill for at least 4 days in a row (including non-working days)
They must earn an average of at least £123 per week
They must have notified their employer within the time limits
When does Statutory Sick Pay start and stop?
SSP begins from the fourth qualifying day that an employee is off work sick, if they are off work for at least 4 days in a row.
It stops when the employee returns to work, or after 28 weeks.
Can Statutory Sick Pay periods be combined?
Yes, if the gap between periods of Statutory Sick Pay is of 8 weeks or less. These are called ‘linked Periods of Incapacity for Work (PIW)’.
How to calculate Statutory Sick Pay
SSP is calculated based on an employee's weekly earnings. As of the current guidelines, the SSP daily rate is £109.40 per week divided by the number of days worked in a week, typically assumed to be 5.
How much is Statutory Sick Pay per day?
Using the standard 5 day work week, the daily Statutory Sick Pay rate would be £109.40 / 5, which equals £21.88.
How much is Statutory Sick Pay per week?
For a full week of illness, employees would receive the full Statutory Sick Pay rate of £109.40.
Example
If an employee works 5 days a week and is sick for 7 days, their SSP would be £109.40 for the week they were off work.
Brought to a monthly amount, their SSP would be £109.40 per week X 4.33 weeks in a month = £473.70 for the month.
How to claim Statutory Sick Pay
Step 1: Notify your employer
First thing's first, you have to tell your employer that you're sick and can't work. Check your employment contract or staff handbook for any specific deadlines for reporting your absence. If there isn't one, you must notify them within 7 days.
Step 2: Self-certification
For the first 7 days you don't need a doctor's note. You can "self-certify" your sickness, often using a form provided by your employer.
Step 3: Get a "fit note"
If you are sick for more than 7 days in a row (including non-working days), your employer may ask you for a "fit note" (formerly known as a "sick note"). You can get one of these from a registered healthcare professional such as your GP, a hospital doctor, a pharmacist, or a nurse. The fit note will state whether you are "not fit for work" or "may be fit for work" with some support from your employer.
Step 4: Receive payment
If you're eligible, your employer will pay you Statutory Sick Pay. The first 3 days of your sickness are known as "waiting days," and SSP is not paid for these unless you have had another period of sickness within the last eight weeks.
Employer's responsibilities in Statutory Sick Pay
When is an employer responsible for paying SSP?
An employer is responsible for paying SSP once an employee:
Has been ill for at least 4 days in a row (including non-working days)
Has notified their employer within the time limit mentioned in the employment contract or your employee handbook. If there is nothing mentioned in either, the employee has 7 days from the day they go off sick to notify their employer
How to manage Statutory Sick Pay payments
SSP payments should be made on the normal payday of the employee, in the same manner as wages.
Employers should also provide a record of SSP payments made to employees - payslips are a good example.
Record-keeping for Statutory Sick Pay
Accurate record-keeping is essential for Statutory Sick Pay. It ensures that employees receive the correct amount and provides a paper trail in case of any disputes or if the business is audited.
Employers should keep records of all sickness absences, the dates, and SSP payments. You can use HMRC’s Statutory Sick Pay: record sheet (SSP2) as a template to record time off.
It's also recommended to retain these records for at least 3 years from the end of the tax year they relate to.
Wrapping up
By understanding eligibility, waiting days, and the correct calculation methods for Statutory Sick Pay, both employers and employees can ensure that all legal obligations are met and that financial security is maintained during periods of illness.
This is where a dedicated payroll solution can be invaluable. A platform like Tide Payroll helps to simplify the entire process by automatically tracking sick days, calculating the correct SSP amounts, and integrating those payments directly into your payroll. This automation saves time, reduces the risk of error, and provides a clear, centralised record of all sickness and payment data.
Image from Unsplash published by kellysikkema
