Understand Statutory Sick Pay

What is Statutory Sick Pay and who gets it?

Statutory Sick Pay (SSP) is an earnings replacement for employees who are off work through illness. Employers must pay this to their employees who satisfy all the qualifying conditions.

You do not have to pay SSP if you pay wages or occupational (contractual) sick pay to your employee for the same days that they would be entitled to SSP, if it is more than, or the same as, the rate of SSP.

As the employer, you must first decide if SSP is payable. Part-time, temporary and casual employees may all be entitled to SSP if they satisfy the qualifying conditions. The majority of employees who are unfit for work through sickness may be entitled to SSP, but they must satisfy all of the following conditions:

• have notified you of their sickness within your own time limits or, if you haven't informed them in advance of any time limits, no later than seven days after the first day of sickness
• be employed by you and have done some work for you under their contract
• be aged 16 or over and under 65 on the first day of sickness in a period of incapacity for work
• be sick for four or more calendar days in a row - this is known as the period of incapacity for work
• have average weekly earnings equal to or more than the lower earnings limit for National Insurance contribution (NIC) purposes
• have earnings on which you are liable to pay employer's Class 1 NICs, or would be liable to pay if the earnings were high enough

In any one period of incapacity for work, SSP is payable to an employee for a maximum of 28 weeks.

The rules of SSP are complex. You can find details and helpful guidance on paying SSP at the HM Revenue & Customs website.

You can also find information for employees on entitlement to Statutory Sick Pay (SSP) at the Department for Work and Pensions website.

Subjects covered in this guide

• Introduction
• What is Statutory Sick Pay and who gets it?
• Earnings-related qualification for SSP
• When to start and stop payments
• How much to pay
• Record keeping and forms
• Getting subsidies or relief
• Alternatives to paying Statutory Sick Pay
• Contractual issues