Statutory Sick Pay (SSP): Employer's Guide

# Statutory Sick Pay (SSP): Employer's Guide

When your employees are off sick, you may need to pay them Statutory Sick Pay (SSP). This is a legal minimum payment that applies from the first qualifying day of illness and can continue for up to 28 weeks. Understanding the rules around eligibility, rates, and how to calculate SSP correctly will help you meet your obligations as an employer.

What is Statutory Sick Pay?

Statutory Sick Pay is money you must pay to eligible employees when they're off work due to illness. The weekly rate is either £123.25 or 80% of the employee's average weekly earnings — whichever is lower.

SSP is paid for up to 28 weeks and is given for the days an employee normally works (called 'qualifying days'). You pay it in the same way as wages, on the normal payday, and you must deduct tax and National Insurance.

You can offer more generous sick pay through a company scheme (also called 'contractual' or 'occupational' sick pay), but you cannot offer less than the statutory amount. Any company scheme must be included in the employment contract.

Who qualifies for SSP?

To qualify for Statutory Sick Pay, employees must:

• Have an employment contract
• Have done some work under their contract
• Have been sick for at least one full working day (called a 'period of incapacity for work')
• Give you notice and proof of illness when needed

Employees can qualify for sick pay from more than one job. They might also qualify in one job but be fit for work in another — for example, if one job involves physical work they cannot do while ill, but another is office-based.

Who does not qualify?

Employees do not qualify for SSP if they:

• Have already received the maximum amount of SSP (28 weeks in total)
• Are getting Statutory Maternity Pay or Maternity Allowance
• Are off work for a pregnancy-related illness in the 4 weeks before the week their baby is due
• Were in custody or on strike on the first day of sickness (including any linked periods)
• Are working outside the EU and you're not liable for their National Insurance contributions
• Received Employment and Support Allowance within 12 weeks of starting or returning to work for you

When to start and stop paying SSP

When to start

SSP is paid when the employee is sick for at least one full working day. You cannot count a day as a sick day if an employee has worked for even a minute before going home sick.

If an employee works a shift that ends the day after it started and becomes sick during the shift or after it ends, they're not eligible for SSP for that shift.

When to stop

SSP stops when the employee comes back to work or no longer qualifies for it.

Notice and proof of sickness

The employee should tell you they're sick within the time limit you've set, or within 7 days if you haven't set one. You cannot insist they tell you in person or on a special form.

You do not have to pay SSP for any days the employee was late in telling you, unless there's a good reason for the delay.

Example: An employee is sick from Monday 2 June and usually works Monday to Friday. You've set your time limit at 5 days' notice, but they only tell you after 7 days (on Monday 9 June). You do not have to pay them SSP for the 2 days they were late. You start paying SSP on Monday 9 June — the first qualifying day after they told you.

Fit notes

You can only ask for a fit note (sometimes called a sick note) if your employee is off work for more than 7 days in a row, including non-working days.

A fit note must be issued by:

• A GP or hospital doctor
• A registered nurse
• An occupational therapist
• A pharmacist
• A physiotherapist

The note can be printed or digital. You cannot withhold SSP if the employee is late sending you a fit note.

If you agree, the employee can give you another appropriate form of evidence instead, such as an Allied Health Professional Health and Work Report or a return-to-work plan.

Linked periods of sickness

If your employee has regular periods of sickness, they may count as 'linked'. To be linked, the periods must:

• Last for at least one full working day
• Be 8 weeks (56 days) or less apart

When periods are linked, you treat them as one continuous period of sickness. This means you don't restart the SSP entitlement — you continue from where you left off.

Your employee is no longer eligible for SSP if they have a continuous series of linked periods that lasts more than 3 years.

Calculating SSP

SSP calculations are based on average weekly earnings over an 8-week period. Employees who have been paid for less than 8 weeks still qualify for SSP.

The weekly rate is £123.25 or 80% of average weekly earnings — whichever is lower.

Working out average weekly earnings

Average weekly earnings must include all earnings on which Class 1 National Insurance contributions are due, or would be due if earnings were high enough.

The relevant period for calculating average earnings ends on the last normal payday before the first complete day of sickness. It starts the day after the last normal payday at least 8 weeks before.

For weekly paid employees: Add up all earnings paid during the relevant period and divide by 8 (the number of weeks).

For monthly paid employees: Add up all earnings paid during the relevant period, divide by 2 (the number of months), multiply by 12, then divide by 52.

New employees

For employees who haven't worked for you for 8 weeks yet, the relevant period becomes the period represented by all earnings paid under the contract before the first day of sick absence.

If the employee has received an exact number of weeks' pay, divide the total earnings by the number of weeks. If they haven't received an exact number of weeks' pay, divide the earnings by the number of days in the relevant period and multiply by 7.

When sickness occurs before any earnings have been paid, use the employee's contractual earnings to work out SSP based on the rate of pay for their job.

You can use the SSP calculator on GOV.UK to work out the actual amount to pay, including daily rates.

Form SSP1: when employees don't qualify or SSP ends

If your employee doesn't qualify for SSP, you must send them form SSP1 within 7 days of their first day off sick.

If your employee's SSP is ending, you must send them form SSP1:

• Within 7 days of their SSP ending, if it ends unexpectedly while they're still sick
• On or before the beginning of the 23rd week, if their SSP is expected to end before their sickness does

Employees may be able to use form SSP1 to apply for Universal Credit or Employment and Support Allowance.

For long-term illness, you can complete form SSP1 before the end of SSP if you know an employee will be off sick for more than 28 weeks. This allows them to apply for Employment and Support Allowance before their SSP ends.

Holiday during sickness

Statutory annual leave continues to accrue while an employee is off work sick, no matter how long they're off. Employees can take annual leave during sick leave if they wish.

You cannot force your employees to take annual leave when they're eligible for sick leave.

An employee's period of incapacity for work is not interrupted if they take annual leave during that time.

Record keeping

You can choose how you keep records of your employees' sickness absence. HMRC may need to see these records if there's a dispute over payment of SSP.

Sources

• Statutory Sick Pay (SSP): employer guide
• Work out your employee's Statutory Sick Pay manually

This article provides general guidance based on current HMRC rules. For advice specific to your situation, speak to your accountant.