Statutory Sick Pay: an overview

Statutory Sick Pay (SSP) is paid to employees who are unable to work because of illness. SSP is paid at the same time and in the same way as you would pay wages for the same period.

As an employer you’re responsible for paying SSP to employees who meet certain qualifying conditions. You also need to record any SSP you pay on the employee’s form P11 Deductions Working Sheet – or equivalent payroll record.

If you have a high proportion of your workforce off sick at the same time you may be able to recover some or all of the SSP you pay from HM Revenue & Customs.

This guide gives an overview of the SSP scheme. It explains when you need to pay SSP and when you don’t, and tells you how to deal with long and frequent absences. It also links to information about calculating and recovering SSP.

Important updates and changes

Although the processes described here will not change once employers start sending PAYE information in real time, this might be a good time for you to familiarise yourself with other changes so that you are ready to operate PAYE in real time.

Getting started with PAYE in real time on the GOV.uk website

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SSP – employer obligations

As an employer you’re responsible for operating the Statutory Sick Pay (SSP) scheme.

You’ll need to:

• work out whether an employee meets the qualifying conditions
• calculate how much SSP they’re due
• pay the SSP to them
• keep a record of the SSP you pay

If you keep paying your employees their normal wage when they’re sick – and you pay them at least as much as the SSP they’d get – you don’t have to operate the SSP scheme.

You must put your sickness policy in a written statement of employment particulars and give a copy to all employees who have worked for you for at least a month.

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SSP rates

The weekly rate of Statutory Sick Pay (SSP) for days of sickness from 6 April 2012 is £85.85. Our related guide ‘Calculating and recovering Statutory Sick Pay’ below explains how to work out the daily rates. They are also shown on the Statutory Sick Pay daily rates table in the HM Revenue & Customs (HMRC) publication E14, ‘Employer Helpbook for Statutory Sick Pay’.

How to calculate and recover Statutory Sick Pay

Statutory Sick Pay (SSP): employer guide on the GOV.uk website

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Is your employee entitled to SSP?

You only need to pay Statutory Sick Pay (SSP) to an employee if they meet the qualifying conditions set out below.

Qualifying conditions

An employee must meet all the following conditions to get SSP:

• They must be your employee – and they’ll need to have done some work under their employment contract before going off sick.
• The days they’re off sick must make up part of a ‘period of incapacity for work’ (PIW) – explained below.
• The days they’re getting SSP for must be qualifying days – these are days they normally work.
• Their earnings must be at least as much as the Lower Earnings Limit for National Insurance contributions (NICs). This is £107 a week for 2012-13.
• They can’t have already received the maximum amount of SSP for the PIW – or for a series of linked PIWs (28 weeks).
• They must have notified you about their sickness – either within your own time limit or within seven days.
• They must give you evidence of their incapacity, if you require it.

In practice most employees who are absent from work because they’re sick qualify for SSP. Part-time, casual and temporary employees can also get SSP as long as they meet the qualifying conditions. An agency worker is entitled to SSP from the first day of their contract provided they satisfy all the other conditions for entitlement. However, they must have undertaken some work under that contract to become entitled.

You can read about how to work out if an employee earns enough to get SSP in the HM Revenue & Customs (HMRC) publication E14 ‘Employer Helpbook for Statutory Sick Pay’. This also includes information on employees who are specifically excluded from the SSP scheme.

Statutory Sick Pay (SSP): employer guide on the GOV.uk website

Period of incapacity for work

SSP is only payable if there’s a PIW. This is a period of four or more days in a row when the employee can’t work because they’re sick or incapacitated.

The days that make up a PIW don’t need to be working days. If an employee normally works from Monday to Friday and they’re sick on Friday, Saturday, Sunday and Monday – then that’s a PIW. Similarly if they only work Tuesdays and Fridays but are sick on both of these days and also sick on Wednesday and Thursday then that’s a PIW.

Linked PIWs

PIWs that are complete (ie they last at least four consecutive days) and are separated by less than eight weeks are called ‘linked PIWs’ and are treated in practice as a single PIW. (Sickness periods that last for less than four consecutive days can’t count towards a linked PIW.)

You can use the downloadable SSP Calculator – which is part of the Basic PAYE Tools package – to work out if two or more PIWs are linked. Alternatively you can use the tables in the E14 ‘Employer Helpbook for Statutory Sick Pay’.

Using HMRC’s Basic PAYE Tools

When to start paying SSP

SSP isn’t payable straight away. The first three qualifying days (days the employee normally works for you) of a PIW are called ‘waiting days’ when SSP isn’t payable. SSP is payable from the first qualifying day after the three waiting days. However, if several PIWs are linked, the waiting days only apply to the first PIW.

If your employee isn’t entitled to SSP

If you’ve got an employee who’s off sick for at least four consecutive days, but who doesn’t qualify for SSP, you must complete form SSP1 and give it to them within seven days of them notifying sickness. They can then claim Employment and Support Allowance (ESA) from their local Jobcentre Plus.

Find form SSP1 ‘Statutory Sick Pay and Incapacity Benefit’ on the GOV.uk website

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Key steps in the SSP process

There are several important steps in the Statutory Sick Pay (SSP) process. They are:

• Working out whether your employee is eligible for SSP and that they have met all the qualifying conditions.
• Checking the employee has told you they’re sick within the required time limits.
• Checking the employee has given proper evidence of their incapacity, if you require it. Make sure your employees know what evidence is needed – including when they can self-certify and when they need a doctor’s note.

Your employees can self-certify sickness periods of up to seven days. They can do this using form SC2 ‘Employee’s statement of sickness’.

Online form SC2 ‘Employee’s statement of sickness’ on the GOV.uk website

You can’t withhold SSP if your employee fails to produce medical evidence on time. But you can decide not to pay SSP if they don’t tell you about their absence within the required time limits – unless you accept that there’s a good reason for this.

You can read more about the types of medical evidence you can ask your employees for in the HMRC publication E14 ‘Employer Helpbook for Statutory Sick Pay’.

If you decide that SSP is payable, start paying it from the first qualifying day after the waiting days.

How to calculate and recover Statutory Sick Pay

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Statement of Fitness for Work

On 6 April 2010 the ‘sick note’ was replaced by the ‘fit note’. The revised medical statement continues to allow GPs to advise whether an employee should refrain from work, but is also able to advise whether it would be appropriate for them to do some work.

This will give employers greater flexibility in managing sickness absence. Where this advice is given, the doctor will provide additional information which will help employers consider whether basic adjustments could be made to assist someone to return to work – for example allowing someone with back pain to take regular breaks away from their desk for exercise.

Employers will not be bound to implement the doctor’s suggested changes, which will be provided at the discretion of employers and with the agreement of the employee. Where no changes are made, the medical statement should be considered as evidence of the individual being unfit for work for sick pay purposes.

Statutory Sick Pay (SSP) – answers to commonly asked questions on the Statement of Fitness for Work on the GOV.uk website

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When to stop paying SSP

You’ll normally stop paying Statutory Sick Pay (SSP) when an employee comes back to work. But you may also need to stop paying SSP if:

• your employee is still off sick but they have had the maximum amount of SSP payable – 28 weeks in one period of incapacity for work (PIW) or in several linked PIWs
• they have had linked periods of sickness over three years – you must stop paying SSP after three years even if your employee hasn’t had 28 weeks of SSP
• they are within the 18/39 week ‘disqualified period’ due to pregnancy or have recently had a baby

You can read more about when an employee can be disqualified from getting SSP in the HM Revenue & Customs (HMRC) publication E14 ‘Employer Helpbook for Statutory Sick Pay’.

If an employee stops being entitled to SSP:

• calculate any SSP still owing and pay it to them on the next pay day
• complete form SSP1 so they can claim Employment and Support Allowance (ESA)

If your employee’s got a long-term illness and you know in advance that they’ll be off for more than 28 weeks you can complete SSP1 in advance. This means they’ll be able to claim ESA without delay.

Go to form SSP1 ‘Statutory Sick Pay and an employee’s claim for benefit’ on the GOV.uk website

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SSP and long or frequent absences

If your employee is often away sick – or they’re off work for a long time – you may want to get medical advice about their condition. You can read more about how to do this in the HM Revenue & Customs (HMRC) publication E14 ‘Employer Helpbook for Statutory Sick Pay’.

If you determine that your employee is capable of work, stop paying them Statutory Sick Pay (SSP). Explain your decision to them and give them form SSP1. You can also stop paying SSP if your employee refuses consent for you to get medical advice about their fitness for work.

Go to form SSP1 ‘Statutory Sick Pay and Incapacity Benefit’ on the GOV.uk website

If your employee doesn’t agree with your decision

If your employee doesn’t agree with your decision not to pay them SSP they can ask HMRC to make a formal decision about their entitlement. You can read more about what happens if HMRC is asked to decide in the HMRC publication E14 ‘Employer Helpbook for Statutory Sick Pay’.

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Calculating and paying SSP

You normally pay Statutory Sick Pay (SSP) in the same way as you pay wages – and at the same time.

SSP payments have to be money. You cannot give something else instead, such as:

• payments in kind – eg goods
• board and lodging
• other services

The easiest way to work out and record your SSP payments is to use commercial payroll software or HM Revenue & Customs’ SSP Calculator.

How to calculate and recover Statutory Sick Pay

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Forms and record-keeping

You must keep various records to help HM Revenue & Customs (HMRC) check you’re operating the Statutory Sick Pay (SSP) scheme correctly including:

• all sickness periods lasting for four days in a row or longer
• all SSP payments you make

You can use form SSP2 to record this information – an interactive form is available within HMRC’s Basic PAYE Tools package, or you can download it using the link below.

Use and retain a copy of form SSP1 – or your own equivalent – when your employee has had the maximum amount of SSP and needs to claim Employment and Support Allowance.

Go to form SSP2 Statutory Sick Pay Record Sheet on the GOV.uk website

Go to form SSP1 ‘Statutory Sick Pay and Incapacity Benefit on the GOV.uk website

Record keeping for employers who opt out of SSP

You can opt out of the full SSP scheme if you keep paying your employees normally or give them occupational sick pay that’s at least as much as SSP when they’re ill.

However, you’ll still need to keep records of:

• all sickness periods of four days and more
• the occupational sick pay or normal earnings you paid

Other forms you will need

You’ll also need to record any SSP you have paid on the following:

• form P11 Deductions Working Sheet, or an equivalent employee payroll record (electronic or paper)
• form P14 End of year summary
• form P35 Employer Annual Return

Remember that almost all employers are required to file their Employer Annual Return (P35 and P14s) online with HMRC. For more information, including details of the exemptions that apply, see our related guide File your Employer Annual Return: P35 and P14s.

If you use the Simplified Deduction Scheme for domestic employees, you’ll need to record your SSP payments on different forms:

• P12 Simplified Deduction Card
• P37 Employer Annual Return

Payroll calculations and records: an introduction

Simplified PAYE for domestic employees

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Help and advice

You’ll find a glossary of Statutory Sick Pay (SSP) terms in the E14, ‘Employer Helpbook for Statutory Sick Pay’.

If you can’t find what you need – and have already checked the related guide on how to calculate SSP and the HMRC publication E14, ‘Employer Helpbook for Statutory Sick Pay’ – you can ask a question through HMRC’s email query service.

Phone or enquire by Post, the Statutory Payment Dispute Team on the GOV.uk website

Alternatively you get advice from the Employer Helpline.

Find contact details for HMRC’s Employer Helpline on the GOV.uk website

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