1. What Is Statutory Sick Pay (SSP)?
Statutory Sick Pay (SSP) is a government-mandated payment that employers must provide to employees who are unable to work due to illness. As of 2024:
- The current SSP rate is £109.40 per week (subject to change).
- Employers are required to pay SSP for up to 28 weeks of sickness absence.
2. Can Small Employers Claim Back SSP?
Currently, small employers cannot reclaim SSP payments.
The Statutory Sick Pay Rebate Scheme, which allowed employers with fewer than 250 employees to reclaim SSP during specific periods (e.g., during the COVID-19 pandemic), has been discontinued.
- Current Rule: SSP is fully funded by employers, regardless of the business size.
- Historical Exceptions: The rebate scheme was available under specific circumstances, such as COVID-related absences, but it ended on September 30, 2021.
3. Employer Responsibilities for SSP
- Determine Eligibility:
To qualify for SSP, employees must:- Earn at least £123 per week.
- Be off work due to illness for at least 4 consecutive days.
- Provide sufficient notice and proof of illness (e.g., a doctor’s note for longer absences).
- Calculate SSP Payments:
- Pay employees £109.40 per week for eligible sickness absence.
- Deduct SSP from their regular wages via payroll.
- Record-Keeping:
Employers must maintain records of SSP payments for at least 3 years, including:- Employee details.
- Dates of sickness absence.
- SSP amounts paid.
4. Are There Any Financial Support Options for Small Employers?
While SSP itself cannot be reclaimed, small employers may explore alternative support:
- Employment Allowance:
- Employers may claim up to £5,000 per year to reduce their National Insurance contributions (NICs).
- Grants or Loans:
- Small businesses may qualify for local government grants or low-interest loans to offset operational costs.
- Insurance Coverage:
- Some businesses purchase insurance policies that cover sickness absence costs.
5. Tips for Managing SSP as a Small Employer
- Plan for Absences:
- Build a contingency plan to manage workload during employee absences.
- Communicate Policies:
- Ensure employees are aware of your sickness absence and SSP policies.
- Utilize Payroll Software:
- Use payroll software to calculate SSP payments accurately and track compliance.
- Monitor Legislative Updates:
- Keep an eye on government announcements for any changes to SSP or rebate schemes.
6. Frequently Asked Questions
Q1: Can employers claim SSP for COVID-19-related absences?
No, the SSP Rebate Scheme for COVID-19 ended on September 30, 2021. Employers are now responsible for covering SSP in full.
Q2: Are self-employed individuals eligible for SSP?
No, SSP is only available to employees. Self-employed individuals may explore other benefits like Employment and Support Allowance (ESA).
Q3: Can employers negotiate SSP with employees?
No, SSP is a statutory requirement, and employers cannot pay less than the mandated rate. However, employers may offer additional sick pay as part of their contract.
7. Conclusion
While small employers cannot currently claim back SSP, managing sick pay effectively involves staying compliant with regulations, exploring available financial support, and planning for workforce absences. By adopting efficient payroll practices and keeping updated on legislative changes, employers can navigate the challenges of SSP with confidence.
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