How much is Statutory Sick Pay?

Everyone gets sick from time to time. From common colds to broken limbs, employers must aim to support staff whilst they’re off work with illnesses.

As of 2024, new laws on Statutory Sick Pay (SSP) have been proposed by the Labour government. These legal amendments aim to provide financial and welfare support for sick employees – encouraging a speedy recovery and return to the workplace.

Let’s take a look at what SSP is, who qualifies for it, and what happens if employees are on sick leave for a long time.

What is Statutory Sick Pay?

Statutory Sick Pay (SSP) is a financial benefit given to employees who are too ill to fulfil their work duties. This includes both physical and mental health issues.

Under employment law, employees only receive Statutory Sick Pay after they’ve been ill for four days or more. This includes non-working days, like weekends or public holidays.

The first three days of their sickness leave are unpaid; these are known as the ‘waiting days’. From the fourth day onwards (or ‘qualifying days’), SSP is provided if they meet the right requirements. Sick pay lasts up to at least 28 weeks.

How much is SSP?

From the 6th of April 2024, Statutory Sick Pay is £116.75 per week. This is the minimum amount that sick employees can receive. Meaning, employers cannot pay them less – but they can pay more. (This is usually done through contractual or occupational sick pay).

The Statutory Sick Pay amount that employees receive depends on the number of days they’d normally work each week – and how many of those days they’re off sick.

For example, an employee is off sick from Monday to Friday (which is their normal working week). They’ll only receive SSP for two days, as the first three count as waiting days. So, they receive £46.70 of Statutory Sick Pay per week (as £116.75÷5).

Who is entitled to Statutory Sick Pay?

There are certain legal criteria that employees must meet for Statutory Sick Pay entitlement. For example:

• Class as an ‘employed earner’ with their workplace.
• Earn at least £123 per week (on average).
• Have completed some work with their workplace.
• Have been sick for more than three days in a row (includes non-workdays).

An employee’s average weekly earnings are based on eight weeks prior to their sickness absence.

Are workers eligible for Statutory Sick Pay?

As of 2024, only certain types of workers have Statutory Sick Pay eligibility only applies to certain types of workers.

Let’s take a look at the government’s new proposal on Statutory Sick Pay:

• Zero-hour workers: They qualify for SSP if they’re an ‘employed earner’. They must also have completed some work for their employment.
• Agency workers: They qualify for SSP if they meet the same criteria above. Whoever employs them (like, their agency or umbrella company) should provide Statutory Sick Pay.
• Part-time workers: They qualify for SSP if they meet the same criteria above. They must also earn at least £123 per week.

Statutory Sick Pay for the self-employed doesn’t exist under current employment law. This applies even if they class as a ‘worker’. Self-employed people may be able to get financial support through government schemes.

Is Statutory Sick Pay a legal requirement?

Yes, paying SSP is a legal requirement. In the UK, Statutory Sick Pay law is covered by the Statutory Sick Pay (General) Regulations 1982 and the Social Security Contributions and Benefits Act 1992.

The new Labour government plans to introduce new legislation relating to SSP qualifications. Through the new Employment Rights Bill 2024, the government aims to end the three-day waiting period. They also plan to remove the lower earnings limit for SSP eligibility.

The legislative change means all employees could be entitled to SSP from the first day of their sickness absence. This no longer depends on who much they earn.

Who pays Statutory Sick Pay?

Employers pay their staff Statutory Sick Pay, just like they would their normal wages. For example, paying it on a monthly basis.

Previously, employers were able to reclaim Statutory Sick Pay from the government. However, the COVID-19 pandemic left many businesses having to pay extortionate SSP rates. Since then, the government has scrapped this scheme.

Is SSP taxable?

Yes, Statutory Sick Pay is taxable. The calculations are usually added to payslips where appropriate tax deductions are outlined. Some of the main ones include:

• National Insurance Contributions (NIC).
• Pension contributions.
• Student loan repayments.

If employees earn £12,570 (as of the 2024/25 tax year), their Statutory Sick Pay rates may be tax-free as their wage falls under the tax threshold.

What happens when Statutory Sick Pay runs out?

There are several factors which lead to Statutory Sick Pay ending. For example, they could recover and decide to return to work. From a negative perspective, they may have already used up their 28 weeks of SSP; or their fit note could have expired.

When an employee’s SSP comes to an end, you need to provide them with an SSP1 form. This must be done either:

1. Within seven days of their SSP period ending. (This is when SSP ends unexpectedly whilst the person is still ill).
2. On or before the beginning of the 23rd week. (This is when SSP ends as expected before the person gets better).

If an employee doesn’t qualify for SSP, you must send them an SSP1 form within the first seven days of their first sick day.

What happens if employees aren’t eligible for Statutory Sick Pay?

Some employees may lack eligibility for Statutory Sick Pay. This could relate to their work accomplishments or even existing financial benefits they receive.

Employers can divert them towards seeking external financial aid, like Universal Credit (UC), Employment and Support Allowance (ESA), and Personal Independence Payment (PIP).

Do employees on long-term sick leave qualify for Statutory Sick Pay?

Most employees on long-term sick leave do qualify for Statutory Sick Pay. This is when a person is off sick for more than four weeks.

In these situations, it’s important to assist them during this time, whilst minimising any business disruptions. In some cases, it can be deemed reasonable to end their contract due to poor health conditions.

Get expert advice on Statutory Sick Pay with Peninsula

Being ill is a normal part of life; meaning, employers must learn to navigate around sickness absences. With the right steps, you’ll be able to follow the appropriate methods when it comes to financially supporting sick staff.

Peninsula offers expert advice on Statutory Sick Pay. We also offer 24-hour HR advice – helping employees get better and return to work safely.

Want to find out more? Contact us on 0800 028 2420 and book a free consultation with an HR consultant today.