What is Statutory Sick Pay and How Does it Work for Employees?

Statutory Sick Pay (SSP) is a legal requirement for UK employers to provide a minimum level of financial support to employees who are too ill to work. Eligible staff can claim SSP from the fourth consecutive day of illness, at a current weekly rate of £116.75, for up to 28 weeks. Understanding the eligibility criteria, calculation methods, and how SSP differs from company sick pay is essential for both employees and HR professionals.

What is Statutory Sick Pay (SSP)?

Statutory Sick Pay, often abbreviated as SSP, is a government-mandated payment that employers are legally obliged to pay to qualifying employees during periods of sickness absence. It is designed as a safety net, not a full salary replacement. The current rate (as of May 2022) is £116.75 per week, and it is payable for a maximum of 28 weeks for a single period of illness. Entitlement begins on the fourth Qualifying Day—a day the employee would normally work. The first three days of illness are typically unpaid 'waiting days.'

What are the Eligibility Requirements for SSP?

Not every employee automatically qualifies for SSP. Based on UK government guidelines, an individual must meet all of the following criteria:

• Employee Status: The individual must have a contract of employment. This means self-employed contractors are not eligible, but agency workers are.
• Minimum Earnings: The employee must earn an average of at least £123 per week (before tax) from that employer.
• Period of Illness: They must have been ill for 4 or more days in a row (including non-working days like weekends).
• Proper Notification: The employee must inform their employer of their illness within the timeframe specified by the company, typically within 7 days.
• Provide a Fit Note: After being ill for more than 7 days, employees usually need to provide a fit note (formerly called a sick note) from a doctor.

It's also important to note that employees cannot receive SSP if they are already receiving Statutory Maternity Pay.

How is SSP Calculated for Full-Time and Part-Time Workers?

The rules for SSP apply equally to both full-time and part-time workers. However, the calculation can differ for those working fewer days. The key is identifying the employee's Qualifying Days.

1. Determine Average Weekly Earnings: Calculate the employee's average weekly pay over an 8-week period before their illness began. This must meet the £123 threshold.
2. Identify Qualifying Days: These are the days the employee is contractually obliged to work. For a full-time worker on a 5-day week, each weekday is a qualifying day. For a part-time worker who works only Tuesdays and Thursdays, only those two days are qualifying days.
3. Calculate the Payment: SSP is paid for each qualifying day the employee is sick. The weekly rate is divided by the number of qualifying days in a week to find the daily rate.

Example: A part-time employee who works Mondays, Wednesdays, and Fridays falls ill from Monday to the following Monday. They would be paid SSP for their qualifying days within that period: Monday, Wednesday, Friday, and the following Monday.

How Does SSP Differ from Company Sick Pay?

A common point of confusion is the difference between statutory and company sick pay. SSP is the legal minimum. Company Sick Pay (also known as contractual or occupational sick pay) is an enhanced benefit offered voluntarily by an employer. It is detailed in the employment contract and is often more generous, such as full pay for a certain number of sickness absence days. A company sick pay scheme cannot offer less than SSP; it can only be more beneficial to the employee. Many employers integrate SSP into their company scheme, meaning the company top-up pay and SSP together make up the employee's normal salary for a set period.

For employees, the key steps are to understand your contract, report your illness promptly, and provide a fit note when required. For employers and HR professionals, maintaining accurate records, correctly identifying qualifying days, and processing payments on the usual payroll date are critical for compliance. Always refer to the latest government guidelines for the most current rates and regulations.