What is Statutory Sick Pay?

It’s normal for employees to be off work sick every once in a while. No matter what their reasons are, it’s important to follow the correct steps when it comes to paying Statutory Sick Pay (SSP).

SSP is a legal payment given to employees when they’re too ill to work. As of 2024, this rate is £116.75 per week. Not only does SSP offer financial support for sick staff, but it also helps promote a healthy recovery and speedy return to the workplace.

Under employment law, employers have a legal duty to ensure all qualifying employees receive the right Statutory Sick Pay amount. Any sign of wrongdoing could lead to further sick leave, compensation penalties, and even reputational damage to your business.

Now we’ve covered what SSP is, let’s look at how to offer this payment to employees who are too ill to work.

How to calculate Statutory Sick Pay for your employees

When calculating Statutory Sick Pay, qualifying employees receive it based on two elements:

1. The number of days they’d normally work each week.

2. How many of those days they’re off sick from work.

For example, an employee is off sick from Monday to Friday (which is their normal working week). You can only apply Statutory Sick Pay from the fourth day of sick leave as the first three days (or ‘waiting days’) are unpaid.

This employee is set to receive £46.70 of Statutory Sick Pay per week. (The calculation is £116.75/5=£46.70). Check out our Sick Pay Calculator offered as part of Peninsula’s HR services. It’s super helpful for working out how much qualifying employees get when they’re off sick.

How to offer Statutory Sick Pay within your workplace

All employers have a legal duty to protect the health, safety, and welfare of their staff. This includes supporting them when they’re too sick to work. By following the laws on sick pay, you’ll be able to offer much-needed financial support – encouraging a healthy, speedy recovery.

Let’s take a look at what the steps are when offering Statutory Sick Pay in your workplace:

Check if they’re eligible for SSP

The first step employers should take is checking what eligibility criteria must be met for employees to receive Statutory Sick Pay. Under employment law, they must:

• Class as an ‘employed earner’ (where they’re liable to paying National Insurance Contributions).
• Earn at least £123 per week (on average).
• Have completed some work for their employment.
• Have been sick for more than three days in a row (includes non-workdays).

Under upcoming legislative changes, new employees may qualify for SSP even before receiving their first paycheck. This relates to them having completed work in relation to their contractual duties, regardless of their service period.

See if they’ve reported sickness absence

Employees who are too sick to work must inform their workplace about their conditions. This is usually done through contacting their direct manager or reporting it through an absence line.

If an employee is sick for less than seven days, they’re not required to provide evidence of their ill-health. They can present some form of self-certification when they return explaining their situation. This can be done either in writing or through verbal means.

Request a fit note

Employees who are off work sick for more than seven days in a row (including non-workdays) must provide a fit note. Fit notes, (or sick notes), are only issued by certain healthcare professionals like:

• GPs or hospital doctors.
• Registered nurses.
• Occupational therapists.
• Pharmacists.
• Physiotherapists.

Some businesses do accept alternative forms of sick notes. For example, Allied Health Professional (AHP) Health and Work Reports are available from physiotherapists, podiatrists, and occupational therapists.

It all depends on what the employee’s illness is, how long they’ve been on leave for, and whether they’re fit enough to work (or require further recovery).

Offer sick pay through proper procedures

At this point, employers will be aware of whether a sick employee is entitled to SSP based on their health situation. You must offer the payment through the correct procedures, in accordance with the law.

Statutory Sick Pay rates are usually calculated and paid through automatic payroll systems. The systems will also calculate tax deductions for SSP amounts, too. For example, National Insurance Contributions, pension payments, or Student Finance deductions.

It’s important to note that if an employee has two or more jobs, they could potentially receive SSP from each job. This doesn’t mean you’re allowed to deny any amount of SSP your business owes to them (if they meet the eligible criteria).

Get expert advice on Statutory Sick Pay with Peninsula

Being ill is a normal part of life; so, employers must learn to navigate around sick leave – minimising any impacts on business operations. With the right steps, you’ll be able to comply with legal responsibilities whilst supporting sick staff members.

Peninsula offers expert advice on Statutory Sick Pay. We also offer 24-hour HR advice – supporting your employees health, wellbeing, and safe return to work.

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