Statutory Sick Pay (SSP)
Statutory Sick Pay (SSP) is a government-mandated benefit designed to provide financial support to employees who are unable to work due to illness. This guide will explain what SSP is, how it works, how much it pays, how to claim it, and answer other common questions regarding SSP.
What is Statutory Sick Pay?
Statutory Sick Pay is a form of financial assistance provided to employees who are unable to work because of illness. It is paid by employers to ensure that employees receive some income during their period of sickness.
How Does Statutory Sick Pay Work?
SSP works by providing eligible employees with a fixed amount of money for each day they are off work due to illness. The payment starts after the employee has been off sick for a certain number of days, known as the 'waiting days'. Employers are responsible for paying SSP to their employees, which is then reimbursed by the government in specific circumstances.
How Much is Statutory Sick Pay?
As of April 2024, SSP is £109.40 per week. It is paid for up to 28 weeks per period of sickness. The amount is fixed and does not change based on the employee's salary. SSP is paid in the same way as wages, usually on the normal payday.
How to Claim Statutory Sick Pay
To claim SSP, employees need to:
Inform their employer about their sickness within the employer’s deadline, or within seven days if the employer does not have a deadline.
Provide proof of sickness if they are off work for more than seven days. This can be a fit note from a doctor, a hospital note, or an NHS isolation note.
Follow their employer’s procedures for reporting sickness.
Who Pays Statutory Sick Pay?
Employers are responsible for paying SSP to their eligible employees. It is paid in the same way as wages, usually on the normal payday. Employers cannot ask employees to repay SSP.
Can I Claim Benefits While on Statutory Sick Pay?
Employees can claim certain benefits while on SSP. For instance, if SSP is not enough to cover living costs, employees may be eligible for Universal Credit or Housing Benefit. It is advisable to check with the Department for Work and Pensions (DWP) or use an online benefits calculator to determine eligibility for additional benefits.
Can an Employer Claim Back Statutory Sick Pay?
Employers cannot usually reclaim SSP paid to employees. The government has discontinued the Percentage Threshold Scheme (PTS), which allowed employers to reclaim SSP. However, during exceptional circumstances, such as the COVID-19 pandemic, special provisions may be introduced to allow employers to reclaim SSP.
When Does Statutory Sick Pay Start?
SSP starts after the employee has been off sick for four or more consecutive days, including non-working days. These first three days are known as 'waiting days' and are not paid unless the employee has already received SSP within the last eight weeks and is eligible for linked periods of sickness.
Is Statutory Sick Pay Taxable?
SSP is considered taxable income and is subject to Income Tax and National Insurance contributions. It is deducted by the employer through the Pay As You Earn (PAYE) system.
How Long Does Statutory Sick Pay Last?
SSP can be paid for up to 28 weeks per period of sickness. If the employee is still unwell after 28 weeks, they may be able to claim Employment and Support Allowance (ESA) or other benefits, depending on their circumstances.
Conclusion
Statutory Sick Pay provides essential financial support to employees who are unable to work due to illness. Understanding how SSP works, how to claim it, and its limitations is crucial for both employees and employers. For more detailed information, employees should consult their employer’s sickness policy or visit the official UK government website. Employers should ensure they are up-to-date with their obligations regarding SSP to support their employees effectively during periods of illness.
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