statutory sick pay, commonly referred to as SSP, is a payment made by employers to employees who are unable to work due to illness or injury. In the UK, SSP is a legal requirement for most employers, and the amount paid is set by the government. Understanding how SSP works and what your rights are as an employee is essential for both employers and employees.
Who is eligible for SSP?
To be eligible for statutory sick pay, an employee must meet the following criteria:
1. They must be classified as an employee and have done some work under their contract.
2. They must have been sick for at least four consecutive days (including non-working days).
3. They must earn at least £120 per week on average.
4. They must notify their employer of their sickness within the specified timeframe.
If an employee meets these criteria, they are entitled to receive SSP for up to 28 weeks. It is important to note that SSP is not paid for the first three days of sickness, known as “waiting days.” After the waiting days, SSP kicks in and is paid by the employer until either the employee is fit to return to work or 28 weeks have passed, whichever comes first.
How much is SSP?
The current rate of SSP is £96.35 per week (as of April 2022), which is paid by the employer directly to the employee. The payment is made in the same way as wages, on the same pay schedule, and is subject to deductions for tax and National Insurance contributions. Employers cannot pay less than the statutory rate of SSP, even if the employee’s normal wages are lower.
In some cases, an employer may offer an employee more generous sick pay benefits than what is required by law. This is known as contractual sick pay and is a separate entitlement from SSP. If an employee is entitled to both SSP and contractual sick pay, they will receive whichever payment is higher.
Can SSP be reclaimed?
Employers can claim back the cost of SSP from the government if they have paid the employee for at least four days of sickness and meet the eligibility criteria. This reimbursement is known as the Percentage Threshold Scheme (PTS) and is designed to help small businesses cover the cost of SSP. To claim back SSP, employers must keep records of the payments made and submit a claim to HM Revenue and Customs (HMRC).
It is worth noting that employers cannot recover the cost of SSP paid to employees who are self-isolating due to COVID-19. The government has provided separate support for businesses to help cover the cost of COVID-related absences, such as the COVID-19 statutory sick pay Rebate Scheme.
What if SSP is not enough?
For some employees, SSP alone may not be enough to cover their living expenses while they are off work due to illness. In these cases, employees may be entitled to additional financial support through other means, such as income protection insurance, welfare benefits, or sick pay provided by their employer. It is important for employees to explore all available options to ensure they receive the financial support they need during sickness absence.
Employers also have a duty to support employees during periods of sickness absence, both financially and emotionally. By providing a supportive work environment, flexible working arrangements, and access to occupational health services, employers can help employees recover and return to work more quickly.
In conclusion, Statutory Sick Pay is a vital form of financial support for employees who are unable to work due to illness or injury. Understanding your rights and responsibilities regarding SSP is crucial for both employers and employees to ensure fair and consistent treatment during periods of sickness absence. By working together, employers and employees can navigate the complexities of SSP and support each other through challenging times.