statutory sick pay (SSP) is a payment made by employers to employees who are unable to work due to illness or injury for a specific period of time. It is a legal requirement in the UK for employers to provide SSP to eligible employees who meet certain criteria. In this article, we will discuss what statutory sick pay is, who is eligible to receive it, how much it pays, and how it is calculated.
Who Is Eligible for statutory sick pay (SSP)?
To be eligible for SSP, employees must meet the following criteria:
1. They must be employed and have done some work for their employer.
2. They must have been sick for at least four days in a row, including non-working days.
3. Their average earnings must be at least equal to the Lower Earnings Limit.
4. They must inform their employer of their illness and provide a sick note if they are off work for more than seven days.
Some employees may not be eligible for SSP, such as those who have already received the maximum amount of SSP in a 3-year period or those who are receiving statutory maternity pay. It is essential for employees to check with their employer or the government’s guidelines to determine their eligibility for SSP.
How Much Is statutory sick pay (SSP)?
As of 2021, the standard rate of SSP is £96.35 per week for up to 28 weeks. This amount is subject to change annually as it is usually reviewed by the government. SSP is paid for the days an employee would normally work and is not paid for the first three days of sickness absence unless the employee has been off work for more than seven days. Employers can choose to pay more than the SSP rate but cannot pay less.
SSP is usually paid in the same way as an employee’s salary is paid, such as monthly or weekly, and it is subject to the usual deductions for tax and National Insurance contributions. Employers are also required to provide a statement of SSP payments made to employees on their payslip, including the dates of the sickness absence.
How Is Statutory Sick Pay Calculated?
The calculation of SSP is based on the employee’s earnings, and it is typically calculated using the daily rate of pay. To calculate the daily rate of SSP, the weekly rate of SSP (£96.35) is divided by the number of days worked in a week by the employee. For example, if an employee works five days a week, the daily rate of SSP would be £19.27 (£96.35 ÷ 5 days).
Employers can use the SSP calculator provided by the government to determine the correct amount of SSP to pay their employees. They are also required to keep accurate records of SSP payments made and may face penalties if they fail to pay SSP correctly or if they discriminate against employees who claim SSP.
In conclusion, statutory sick pay is a crucial benefit that provides financial support to employees who are unable to work due to illness or injury. It is a legal requirement for employers to pay SSP to eligible employees, and failure to do so can result in penalties. Employees should be aware of their rights to SSP and should communicate with their employer to ensure they receive the correct amount of SSP to which they are entitled.