SPM10730 - Statutory Sick Pay (SSP) - Calculating and paying SSP

Offsetting SSP against employee’s pay

An employer may be able to offset other payments of earnings against their liability to pay SSP for that day if they pay the employee an amount, which is at least equal to SSP. Pay includes any contractual remuneration including occupational sick scheme payments.

If an employer tops up the SSP to full pay when an employee is off sick, the arrangement is a matter between the employer and the workforce. The Department’s sole concern is that the employer has fully met his SSP liability and recovered the correct amount from the NI Fund.

Employers can choose not to offset the pay against SSP and pay the employee both SSP and pay.

If there are less than four days of sickness in a row or there are no QDs due for payment in the PIW, the employer might make contractual payments for these days but the payments will not be SSP.

Payment solely funded by employees cannot count towards an employer’s liability to pay SSP. If payments are partly funded by the employees, only the amount funded by the employer can count.

Example 1

An employee is off sick for four weeks, but is only entitled to occupational sick pay of £120 per week for the first three weeks, although the total occupational sick pay for the period of incapacity is £360.

The weekly rate of SSP is £79.15. Taking into account the waiting days, the employee was entitled to two days £ 31.66 for the first week and £79.15 for each of the next three weeks so the total SSP payable was £ 269.11.

Although the total amount of occupational sick pay was greater than the total amount of SSP, only £189.96 can be offset against the employer's SSP liability and the employee is entitled to the full £79.15 for the fourth week of absence.

Example 2

An employee is off work sick and due SSP. The employer is already paying holiday pay for one of the day's leave but it is less than the SSP due. The SSP liability may be met by paying the holiday pay plus an extra amount to make up the payment to the SSP due for the day.