Introduction to Statutory Sick Pay (SSP)
Definition of SSP
Statutory Sick Pay (SSP) is a financial assistance that UK employment law entitles to employees who are unable to work due to illness. It is designed to provide a measure of income protection and is managed by the employer directly.
Who is Eligible for SSP?
SSP is available to all employees in the UK who meet the following criteria:
- 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)
- earn an average of at least £123 per week, and
- have notified their employer within the time limits.
Understanding the Basics of Statutory Sick Pay
The Importance of SSP in the UK
In the UK, SSP plays a crucial role in ensuring employees do not suffer financial hardship when they are unable to work due to illness.
It's a legal requirement for employers to pay SSP to eligible employees and workers. It promotes fair treatment and providing a safety net for employees during challenging times.
When Does SSP 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 SSP Periods Be Combined?
Yes, if the gap between periods of SSP is of 8 weeks of less. These are called ‘linked Periods of Incapacity for Work (PIW)’.
Calculate Your Employee's Statutory Sick Pay
How is SSP Calculated in the UK?
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 SSP per day?
Using the standard 5 day work week, the daily SSP rate would be £109.40 / 5, which equals £21.88.
How much is SSP per week?
For a full week of illness, employees would receive the full SSP rate of £109.40.
Examples of SSP Calculation
For 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.
Employer's Responsibilities in SSP
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), and
- 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 SSP 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
Importance of Accurate Record-Keeping for SSP
Accurate record-keeping is essential for SSP. It ensures that employees receive the correct amount and provides a paper trail in case of any disputes or if the business is audited.
Best Practices for SSP Record-Keeping
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.
SSP records in Onfolk
The Onfolk platform allows you to record each of your employee’s time-off dates, including sickness. As the system doubles up as an automated payroll system, you have within one place access to each employee’s time-off records and payroll information.
Click here for more information.
By understanding the ins and outs of SSP, both employers and employees can ensure they are following the law and that employees are treated fairly during periods of illness.
Related articles:
- What does pro-rata mean and how to calculate it?
- How many working days are in a year?
- Our Complete Guide To Work From Home Tax Relief in the UK
- UK bank holidays for 2023
Introduction to Statutory Sick Pay (SSP)
Definition of SSP
Statutory Sick Pay (SSP) is a financial assistance that UK employment law entitles to employees who are unable to work due to illness. It is designed to provide a measure of income protection and is managed by the employer directly.
Who is Eligible for SSP?
SSP is available to all employees in the UK who meet the following criteria:
- 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)
- earn an average of at least £123 per week, and
- have notified their employer within the time limits.
Understanding the Basics of Statutory Sick Pay
The Importance of SSP in the UK
In the UK, SSP plays a crucial role in ensuring employees do not suffer financial hardship when they are unable to work due to illness.
It's a legal requirement for employers to pay SSP to eligible employees and workers. It promotes fair treatment and providing a safety net for employees during challenging times.
When Does SSP 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 SSP Periods Be Combined?
Yes, if the gap between periods of SSP is of 8 weeks of less. These are called ‘linked Periods of Incapacity for Work (PIW)’.
Calculate Your Employee's Statutory Sick Pay
How is SSP Calculated in the UK?
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 SSP per day?
Using the standard 5 day work week, the daily SSP rate would be £109.40 / 5, which equals £21.88.
How much is SSP per week?
For a full week of illness, employees would receive the full SSP rate of £109.40.
Examples of SSP Calculation
For 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.
Employer's Responsibilities in SSP
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), and
- 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 SSP 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
Importance of Accurate Record-Keeping for SSP
Accurate record-keeping is essential for SSP. It ensures that employees receive the correct amount and provides a paper trail in case of any disputes or if the business is audited.
Best Practices for SSP Record-Keeping
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.
SSP records in Onfolk
The Onfolk platform allows you to record each of your employee’s time-off dates, including sickness. As the system doubles up as an automated payroll system, you have within one place access to each employee’s time-off records and payroll information.
Click here for more information.
By understanding the ins and outs of SSP, both employers and employees can ensure they are following the law and that employees are treated fairly during periods of illness.
Related articles:
- What does pro-rata mean and how to calculate it?
- How many working days are in a year?
- Our Complete Guide To Work From Home Tax Relief in the UK
- UK bank holidays for 2023
