What Is Statutory Sick Pay (SSP)?
Statutory Sick Pay (SSP) is a legally required payment that employers must provide to eligible employees who are unable to work due to illness or injury.
As of 2024, the SSP framework is as follows:
- Current SSP rate: £109.40 per week (subject to government review).
- Duration: Payable for up to 28 weeks of continuous sickness absence.
Employers are responsible for paying SSP through payroll just like normal wages, and it counts as taxable income for employees.
Can Small Employers Claim Back SSP?
Under current UK law, employers cannot reclaim SSP payments, regardless of company size.
Previous Rebate Schemes
The Statutory Sick Pay Rebate Scheme (SSPRS) allowed smaller employers (with fewer than 250 employees) to reclaim some or all SSP costs under specific conditions. This included temporary support during the COVID-19 pandemic.
However:
- The COVID-19 SSP Rebate Scheme officially ended on 30 September 2021.
- Since then, no replacement rebate or reimbursement scheme has been introduced.
Current Rule (2024):
SSP is fully funded by employers. All businesses, regardless of size, are responsible for paying the full amount of SSP to eligible employees.
Employer Responsibilities for SSP
Employers must ensure they meet their legal obligations when managing and paying SSP.
1. Determine Employee Eligibility
To qualify for SSP, an employee must:
- Earn at least £123 per week (before tax).
- Be off sick for at least four consecutive days (including non-working days).
- Provide appropriate notice of absence.
- Submit a doctor’s fit note if absent for more than seven days.
2. Calculate SSP Payments
- Pay £109.40 per week (pro-rated for part-time employees).
- Start paying from the fourth qualifying day of illness (the first three days are “waiting days”).
- Pay SSP via the regular payroll system, deducting tax and National Insurance as usual.
3. Maintain Proper Records
Employers must keep SSP records for at least three years, including:
- Employee details (name, NI number, and payroll reference).
- Dates of sickness and payment periods.
- Amounts of SSP paid.
- Evidence provided by the employee (fit notes, communication logs).
Accurate record-keeping ensures compliance and protects the business in the event of a dispute or HMRC audit.
Are There Any Financial Support Options for Small Employers?
Although SSP itself is not reclaimable, there are other forms of financial assistance available to smaller employers to offset general employment costs.
1. Employment Allowance
Small employers may claim up to £5,000 per year to reduce their Class 1 National Insurance contributions (NICs).
- Employers must have paid less than £100,000 in NICs in the previous tax year to qualify.
2. Business Grants and Loans
Local authorities and government-backed schemes periodically offer grants or low-interest loans to help small businesses with staffing or operational costs.
3. Insurance Options
Employers may take out sickness absence insurance or income protection policies to cover the cost of long-term employee absences.
Tips for Managing SSP as a Small Employer
Effectively managing SSP can help reduce operational disruption and maintain compliance.
1. Plan for Absences
Establish a clear system for managing workloads when employees are absent due to sickness. Cross-train team members to ensure continuity of operations.
2. Communicate Policies Clearly
Include clear guidance on sickness absence and SSP entitlements in your employee handbook. Ensure employees understand how to report illness and provide documentation.
3. Use Payroll Software
Modern payroll software can automate SSP calculations, track absences, and generate compliance reports. This reduces errors and administrative workload.
4. Monitor Legal Updates
Keep informed of changes to SSP rates, eligibility criteria, or government schemes by checking official sources such as GOV.UK or subscribing to HMRC employer updates.
Frequently Asked Questions (FAQs)
Q1: Can employers claim SSP for COVID-19-related absences?
No. The SSP Rebate Scheme for COVID-19 ended on 30 September 2021. All SSP payments are now the responsibility of the employer.
Q2: Are self-employed individuals eligible for SSP?
No. SSP applies only to employees. Self-employed individuals may apply for Employment and Support Allowance (ESA) or other benefits.
Q3: Can employers agree on alternative sick pay arrangements?
Employers cannot pay less than the statutory SSP amount but may offer enhanced sick pay as part of their employment contracts or workplace policy.
Q4: How long must SSP be paid?
Employers must pay SSP for up to 28 weeks, as long as the employee continues to meet eligibility requirements.
Q5: What if an employee has multiple sickness absences?
If two or more absences are linked (less than eight weeks apart), they count as a single period for SSP purposes.
Conclusion
Employers can no longer reclaim Statutory Sick Pay (SSP) in the UK, as all rebate schemes have been discontinued. Businesses must fund SSP entirely from their own payroll budgets, regardless of size.
To manage this effectively, employers should focus on accurate record-keeping, clear communication, and forward planning for absences. While no direct reimbursement is available, options such as Employment Allowance and business insurance can help offset costs and maintain financial stability.
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