Statutory Sick Pay Explained: Eligibility, Rates, and Employer Obligations

IN BRIEF: Statutory sick pay (SSP) is the minimum amount that employers in Great Britain are required to pay to eligible employees who can’t work due to illness. To be eligible, an employee needs to earn at least the Lower Earnings Limit, be off sick for a minimum of four consecutive days, and be classified as an employee rather than self-employed. SSP is paid at a set weekly rate for up to 28 weeks, but keep in mind that the first three days of absence are considered unpaid waiting days. Employers handle SSP payments through their regular payroll and, in most cases, they can’t reclaim these costs from the government. Employees are responsible for informing their employer about their sickness and must provide a fit note from a medical professional after being absent for seven consecutive days. While employers can offer a sick pay scheme that’s more generous than SSP, they cannot pay less than the statutory minimum.

TABLE OF CONTENTS

1. What Is Statutory Sick Pay?
2. Who Is Eligible for Statutory Sick Pay?
3. How Much Is Statutory Sick Pay and How Long Does It Last?
4. What Are the SSP Waiting Days and How Do They Work?
5. How Do Employees Notify Their Employer of Sickness?
6. What Is a Fit Note and When Is One Required?
7. How Do Employers Calculate and Process SSP?
8. Can Employers Reclaim Statutory Sick Pay from the Government?
9. What Happens When SSP Ends?
10. What Are the Most Common SSP Mistakes Employers Make?
11. How Does Contractual Sick Pay Differ from Statutory Sick Pay?
12. What Rights Do Employees Have During a Period of SSP?
13. Key Points

 

What Is Statutory Sick Pay?

 

Statutory sick pay (SSP) is the minimum amount that employers in Great Britain must pay to eligible employees who can’t work due to illness, injury, or other qualifying medical issues. It’s a basic right established by employment laws and applies to all employers, no matter their size or how long the employee has been with them.

SSP isn’t a government benefit that workers receive directly; instead, it’s paid by the employer through the usual payroll process, just like regular wages. Typically, the employer covers the cost of SSP, although there have been different rules during certain public health emergencies in recent years.

The main goal of SSP is to offer financial support to employees during short-term illnesses, helping them recover and get ready to return to work. It provides a safety net for employees during a tough time and gives employers a clear framework for managing absences. Understanding SSP is crucial for both employers of any size and employees who want to know their rights when they get sick.

Who Is Eligible for Statutory Sick Pay?

 

Not every employee who gets sick is automatically entitled to statutory sick pay. Whether someone qualifies really hinges on a mix of their job status, how much they earn, and the specifics of their absence. Employers need to carefully review each of these factors before deciding if someone is eligible or if a claim should be denied.

SSP eligibility at a glance:

Eligibility Criterion	Requirement	Qualifying	Non-Qualifying
Employment status	Must be classed as an employee (not self-employed)	Eligible	Not eligible
Minimum earnings	Must earn at least the Lower Earnings Limit	Eligible	Not eligible
Consecutive sick days	Must be off sick for at least 4 consecutive days	Eligible	Not eligible
Sick note requirement	Needed after 7 days; self-certification for days 1 to 7	Required after day 7	Self-cert only
Time with employer	No minimum period of service required	Day one right	Day one right

Which Workers Are Not Eligible for SSP?

 

Some groups of workers aren’t eligible for statutory sick pay and might need to seek alternative support from the social security system. These groups include:

• Self-employed individuals who operate under a contract for services instead of a traditional employment contract
• Employees whose earnings fall below the Lower Earnings Limit for the relevant tax year
• Employees who have already claimed 28 weeks of SSP without a qualifying break of more than eight weeks between linked periods of incapacity
• Employees who are in legal custody or currently outside the European Economic Area
• Employees who are receiving statutory maternity pay, maternity allowance, or certain other statutory payments during their sickness absence

How Much Is Statutory Sick Pay and How Long Does It Last?

 

Statutory sick pay is provided at a standard weekly rate determined by the government. It can be received for a maximum of 28 weeks if you’re unable to work due to illness. Each year, the rate is reviewed and typically goes up every April as part of the government’s adjustment process.

SSP weekly rates and qualifying conditions by tax year:

Tax Year	Weekly Rate (GBP)	Waiting Days	Maximum Duration	Earnings Threshold
2024 to 2025	GBP 109.40	3	28 weeks maximum	At least 123.00 per week
2023 to 2024	GBP 109.40	3	28 weeks maximum	At least 123.00 per week
2022 to 2023	GBP 99.35	3	28 weeks maximum	At least 120.00 per week
2021 to 2022	GBP 96.35	3	28 weeks maximum	At least 120.00 per week
2020 to 2021	GBP 95.85	3	28 weeks maximum	At least 120.00 per week

SSP is paid just like regular wages, following the same schedule. So, if someone gets paid weekly, they’ll receive their SSP weekly too. If their pay is monthly, the SSP for the qualifying days will be included in that monthly paycheck. It’s important for payslips to clearly show SSP payments separately from regular wages, so employees can easily see what they’re getting.

The maximum duration for SSP is 28 weeks, which applies to a single period of incapacity or to linked periods where the breaks between absences are eight weeks or shorter. If an employee goes back to work for more than eight weeks between sickness episodes, a new 28-week entitlement kicks in with their next absence.

What Are the SSP Waiting Days and How Do They Work?

 

The first three days of any work incapacity period are known as waiting days. During this time, employers aren’t obligated to pay statutory sick pay (SSP). SSP kicks in starting from the fourth consecutive day of sickness. Qualifying days refer to the days an employee would typically be scheduled to work according to their contract.

For instance, if someone works Monday through Friday and gets sick on a Monday, their waiting days would be Monday, Tuesday, and Wednesday. This means SSP would start on Thursday, which is the fourth qualifying day. For part-time or workers with variable schedules, the qualifying days need to be agreed upon between the employer and the employee or specified in the employment contract. If there’s no agreement, the default is that all days of the week count, except for Sundays.

Waiting days don’t reset when it comes to linked periods of incapacity. So, if an employee comes back to work and then gets sick again within eight weeks, that new absence is considered connected to the previous one, meaning no additional waiting days are needed. This rule helps ensure that employees aren’t unfairly penalized multiple times for the same ongoing health issues.

How Do Employees Notify Their Employer of Sickness?

 

Employees need to let their employer know about any sickness absence as soon as they can. Most companies have a sickness absence policy that outlines how to notify them—whether it’s a phone call, an email, or through an online system. This policy usually includes who to contact and when to do it, typically by the start of the first working day of absence.

Employers can insist that employees follow this notification process to qualify for Statutory Sick Pay (SSP). However, they can’t set a notification deadline that’s earlier than the first day of the incapacity period. If an employee doesn’t notify their employer as required, the employer might have the right to withhold SSP, but only if the employee didn’t have a good reason for not following the procedure.

When it comes to a solid sickness notification procedure, here’s what you should include:

• A clear deadline for when employees should reach out, like before a certain time on their first day off
• The name or position of the person they should contact, such as their direct manager or someone in HR
• The preferred way to communicate, whether that’s a phone call, a written message, or using an online absence system
• A request for the employee to provide an estimated return date, if they can
• Guidelines for keeping the employer in the loop if the absence lasts longer than expected
• Information on self-certification and when a fit note from a healthcare professional is necessary

What Is a Fit Note and When Is One Required?

 

A fit note, which is officially called a statement of fitness for work, is a document provided by a registered medical practitioner. It confirms that an employee is unable to work due to illness or injury. This new system replaces the old sick note approach and allows practitioners to not only state that an employee can’t work but also to suggest that they might be fit for work with some reasonable adjustments.

Employers can ask for a fit note after an employee has been absent for seven consecutive days, including weekends and bank holidays. During the first week of absence, employees can self-certify, meaning they can fill out the employer’s self-certification form without needing to see a doctor. For absences of seven days or less, employers can’t require a fit note, but they can still ask employees to complete a self-certification form.

A fit note from a medical professional usually contains some key details, including:

• The name of the employee and the date the note was issued
• The medical condition or diagnosis that’s causing the inability to work
• Whether the practitioner believes the employee is unfit for work or might be fit with some adjustments
• If adjustments are suggested, a rundown of what those might be, like modified duties, changed hours, or necessary changes in the workplace
• The duration that the fit note covers
• The signature and contact information of the practitioner

How Do Employers Calculate and Process SSP?

 

Calculating Statutory Sick Pay (SSP) involves a few steps for employers. First, they need to figure out how many qualifying days fall within the incapacity period. They should remember to exclude the first three waiting days from that initial period. Next, they apply the current weekly rate and divide it by the number of qualifying days in that week to get a daily rate. This daily rate is then multiplied by the total number of qualifying days for which SSP is due.

What’s the Calculation for the SSP Daily Rate?

 

To find the daily rate of SSP, you simply divide the weekly rate by the number of qualifying days in that week. For instance, if an employee has five qualifying days in a week during the 2024 to 2025 tax year, you take GBP 109.40 and divide it by 5, which gives you GBP 21.88 for each qualifying day. If an employee has three qualifying days in a week, the calculation would be GBP 109.40 divided by 3, resulting in GBP 36.47 per qualifying day.

SSP needs to be processed through payroll and:

 

• Is subject to income tax and National Insurance contributions just like regular wages
• Must be clearly itemized on the employee’s payslip
• Should be documented in the employer’s payroll records, including the incapacity period, qualifying days, and waiting days
• Paid out at the same intervals as the employee’s usual wages
• Reported to the tax authority through the employer’s real-time information submissions

Can Employers Reclaim Statutory Sick Pay from the Government?

 

In general, employers can’t get back statutory sick pay (SSP) from the government. The responsibility for covering SSP falls entirely on the employer as part of the employment relationship. This has been the norm ever since the previous rebate schemes for small businesses were done away with.

However, during certain public health emergencies, there have been temporary programs that let employers reclaim SSP related to those situations. It’s important to note that these programs are governed by different laws and have specific start and end dates. Employers shouldn’t assume there’s a way to reclaim SSP without first checking the latest guidance from the tax authority.

What Happens When SSP Ends?

 

When an employee has hit the maximum limit of 28 weeks for statutory sick pay and is still unable to return to work, the SSP payments will stop. At this stage, the employer is required to provide the employee with a form that enables them to apply for additional support through the social security system. This form will outline the dates of the SSP payments and the reason for its termination.

It’s important to note that just because SSP has ended, it doesn’t mean the employment relationship is over. Employees who are on long-term sick leave still hold onto their employment rights, which include accruing annual leave, receiving notice pay if they are dismissed, and protection against unfair dismissal. Employers contemplating dismissal due to health issues must adhere to a fair process that involves gathering medical evidence, engaging in consultations, and considering reasonable adjustments.

Here’s what employers need to do when SSP comes to an end:

1. 1. • Provide the necessary form to the employee within seven days of SSP ending so they can seek other support
      • Keep in touch with the employee and ensure absence records are current
      • Gather updated medical evidence before making any decisions regarding the employee’s ongoing employment
      • Discuss with the employee the possibility of a phased return, adjusted duties, or other reasonable accommodations
      • Seek occupational health advice if the employee’s situation is complicated or the prognosis is unclear
      • Follow a fair capability process before considering dismissal, ensuring the employee has a reasonable chance to recover

What Are the Most Common SSP Mistakes Employers Make?

 

Even the most well-meaning employers can stumble when it comes to handling statutory sick pay (SSP). Some of these slip-ups come from a lack of understanding of the rules, while others are due to outdated processes or administrative oversights. By being aware of the most common pitfalls, employers can implement the necessary measures to steer clear of them.

Not paying SSP to eligible employees: Some employers mistakenly believe that SSP kicks in only after a certain period of service. This is a misconception; eligible employees have the right to SSP from day one.

Miscalculating waiting days: One of the most frequent mistakes in SSP calculations is misidentifying qualifying days and incorrectly applying the three-day waiting period.

Using incorrect rates: It’s easy to overlook the updated SSP rates, especially when they change in April, leading some employers to use outdated figures from previous tax years.

Asking for a fit note too soon: Employers can’t require a fit note for absences lasting seven days or less. Doing so could be seen as unlawfully hindering the employee’s right to SSP.

Not issuing the necessary form when SSP ends: Employers are legally required to provide this form promptly. Failing to do so can delay the employee’s access to other forms of support.

Treating SSP as optional: Remember, SSP is a statutory right, not a benefit that employers can choose to withhold from employees who fail to follow notification procedures without a valid reason.

How Does Contractual Sick Pay Differ from Statutory Sick Pay?

 

Contractual sick pay is a more generous option that employers provide, either in addition to or instead of the basic statutory minimum. When a contractual scheme is in place, employees might receive their full salary or a portion of it for a specific time before it reverts to the statutory rate. Some employers extend this benefit for several weeks or even months, offering much better financial protection than just the Statutory Sick Pay (SSP) alone.

It’s important to note that a contractual sick pay scheme can never pay less than the SSP minimum. If the contractual arrangement would lead to a payment that falls below the SSP for any period, the employer is required to make up the difference to ensure it meets at least the statutory rate. These contractual schemes should be clearly outlined in the employment contract or employee handbook, detailing the rates, eligibility criteria, and duration in straightforward language.

What Rights Do Employees Have During a Period of SSP?

 

Receiving statutory sick pay doesn’t mean that an employee loses their other employment rights. Whether someone is off sick for a short time or a longer stretch, they still have a variety of protections that employers need to honor.

Here are the employment rights that stay in place during sickness absence:

• Employees continue to earn annual leave while they’re off sick, including bank holidays. If they couldn’t take their leave because of their illness, any unused days can be carried over to the next leave year.
• The protection against unfair dismissal is still active; if someone is let go due to their sickness absence without a fair process, that dismissal could be deemed unfair.
• If the illness qualifies as a disability, employees have the right to be considered for reasonable adjustments under disability discrimination laws.
• If an employer decides to terminate employment during or after a period of sickness, the notice pay should be based on normal earnings, not just statutory sick pay.
• Employees have the right to be kept in the loop about any changes at work, redundancy processes, or promotion opportunities that come up while they’re away.
• Lastly, employees have the right to return to work after their absence without facing any negative consequences for having taken their statutory sick pay.

 

 

KEY POINTS    Statutory sick pay is the minimum amount that employers are legally required to pay eligible employees who can’t work due to illness. This payment comes through payroll, not directly from the government.  To qualify, employees need to be classified as such, earn at least the Lower Earnings Limit, and be off sick for a minimum of four consecutive days.  The first three days of any absence are considered unpaid waiting days, and SSP kicks in on the fourth qualifying day.  For the 2024 to 2025 tax year, the current weekly SSP rate is GBP 109.40, which can be paid for up to 28 weeks.  Employees can self-certify their absence for the first week; however, a fit note from a medical professional is necessary for longer periods of absence.  In most cases, employers cannot reclaim SSP from the government; the financial responsibility falls on them.  Once SSP ends after 28 weeks, employers are required to provide the appropriate form so the employee can apply for additional support.  While contractual sick pay can be higher than SSP, it must never be lower; all terms should be clearly documented.  Employees maintain their full employment rights during their sickness absence, which includes accruing annual leave, protection against unfair dismissal, and the right to reasonable adjustments.  Common mistakes employers make include miscounting waiting days, using outdated rates, and asking for fit notes too soon.