SE76350 – Social security benefits: statutory sick pay

Section 19(1)1 and 150(c) ICTA 1988

Summary

Employers are responsible for paying statutory sick pay (SSP) to employees who are absent from work due to sickness or disability. SSP is due for the first 28 weeks the employee is off work.

Entitlement to SSP does not depend on the sick employee's National Insurance contribution record. If an employee enquires about the conditions for getting SSP, you should refer him to his local DSS office.

The SSP scheme does not affect an employee's right to occupational sick pay (see SE06400). But SSP must be offset against any occupational sick pay payable for the same period. Where the occupational sick pay is greater than the SSP, the employer will only pay the rate of occupational sick pay. If the SSP is greater than the occupational sick pay, the employer will pay the rate of SSP. Both SSP and occupational sick pay are taxable under Schedule E.

SSP is payable by the employer

Although SSP is a Social Security benefit, Section 1 of the Social Security and Housing Benefits Act 1982 requires the employer to make the payments. This means that payments of SSP are emoluments of an employment and chargeable to tax under Schedule E by Section 19(1)1 ICTA 1988. SSP is not payable after an employment ceases except in rare circumstances.

Sometimes however SSP is paid direct to the sick employee by the DSS. EP1171 explains what to do when this happens. Where payments of SSP do not arise from an employment, Section 150(c) ICTA 1988 ensures that the payments are still chargeable under Schedule E.

National Insurance contributions are payable on SSP.