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Statutory Sick Pay (SSP) is paid to employees who are unable to work because of illness. SSP is paid at the same time and in the same way as you would pay wages for the same period.
As an employer you're responsible for paying SSP to employees who meet certain qualifying conditions. You also need to record any SSP you pay on the employee's form P11 Deductions Working Sheet - or equivalent payroll record.
If you have a high proportion of your workforce off sick at the same time you may be able to recover some or all of the SSP you pay from HM Revenue & Customs (HMRC).
This guide gives an overview of the SSP scheme. It explains when you need to pay SSP and when you don't, and tells you how to deal with long and frequent absences. It also links to information about calculating and recovering SSP.
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As an employer you're responsible for operating the SSP scheme. You'll need to:
If you keep paying your employees their normal wage when they're sick - and you pay them at least as much as the SSP they'd get - you don't have to operate the SSP scheme.
You must put your sickness policy in a written statement of employment particulars and give a copy to all employees who have worked for you for at least a month.
The weekly rate of SSP for days of sickness from 6 April 2011 is £81.60.
Related guide 'Calculating and recovering Statutory Sick Pay' explains how to work out the daily rates. They are also shown on the Statutory Sick Pay daily rates table in the HMRC publication E14, 'Employer Helpbook for Statutory Sick Pay'.
Calculating and recovering Statutory Sick Pay
Download E14, 'Employer Helpbook for Statutory Sick Pay' (PDF 212K)
You only need to pay SSP to an employee if they meet the qualifying conditions set out below.
An employee must meet all the following conditions to get SSP:
In practice most employees who are absent from work because they're sick qualify for SSP. Part-time, casual and temporary employees can also get SSP as long as they meet the qualifying conditions.
An agency worker is entitled to SSP from the first day of their contract provided they satisfy all the other conditions for entitlement. However, they must have undertaken some work under that contract to become entitled.
You can read about how to work out if an employee earns enough to get SSP in the HMRC publication E14, 'Employer Helpbook for Statutory Sick Pay'. This also includes information on employees who are specifically excluded from the SSP scheme.
Download E14, 'Employer Helpbook for Statutory Sick Pay' (PDF 212K)
SSP is only payable if there's a period of incapacity for work (PIW). This is a period of four or more days in a row when the employee can't work because they're sick or incapacitated.
The days that make up a PIW don't need to be working days. If an employee normally works from Monday to Friday and they're sick on Friday, Saturday, Sunday and Monday - then that's a PIW. Similarly if they only work Tuesdays and Fridays but are sick on both of these days and also sick on Wednesday and Thursday then that's a PIW.
PIWs that are complete (ie they last at least four consecutive days) and are separated by less than eight weeks are called 'linked PIWs' and are treated in practice as a single PIW. (Sickness periods that last for less than four consecutive days can't count towards a linked PIW.)
You can use the downloadable SSP Calculator - which is part of HMRC's Basic PAYE Tools package - to work out if two or more PIWs are linked. Alternatively you can use the tables in the HMRC publication E14, 'Employer Helpbook for Statutory Sick Pay'.
A set of Basic PAYE Tools is available to download straight to your computer. In addition to calculators for SSP and other statutory payments, the tools include:
Download Basic PAYE Tools from the Business Link website (Opens new window)
Use the SSP Calculator online to see if several PIWs are linked
SSP isn't payable straight away. The first three qualifying days (days the employee normally works for you) of a PIW are called 'waiting days' when SSP isn't payable: SSP is payable from the first qualifying day after the three waiting days. However, if several PIWs are linked, the waiting days only apply to the first PIW.
If you've got an employee who's off sick for at least four consecutive days, but who doesn't qualify for SSP, you must complete form SSP1 and give it to them within 7 days of them notifying sickness. They can then claim Employment and Support Allowance (ESA) from their local Jobcentre Plus.
Go to form SSP1 'Statutory Sick Pay and an employee's claim for benefit'
There are several important steps in the SSP process. They are:
Your employees can self-certify sickness periods of up to seven days. They can do this using form SC2 'Employee's statement of sickness'.
Go to form SC2 'Employee's statement of sickness'
You can't withhold SSP if your employee fails to produce medical evidence on time. But you can decide not to pay SSP if they don't tell you about their absence within the required time limits - unless you accept that there's a good reason for this.
You can read more about the types of medical evidence you can ask your employees for in the HMRC publication E14, 'Employer Helpbook for Statutory Sick Pay'.
If you decide that SSP is payable, start paying it from the first qualifying day after the waiting days.
Calculating and recovering SSP
Download E14, 'Employer Helpbook for Statutory Sick Pay' (PDF 212K)
On 6 April 2010 the 'sick note' was replaced by the 'fit note'. The revised medical statement continues to allow GPs to advise whether an employee should refrain from work, but is also able to advise whether it would be appropriate for them to do some work.
This will give employers greater flexibility in managing sickness absence. Where this advice is given, the doctor will provide additional information which will help employers consider whether basic adjustments could be made to assist someone to return to work - for example allowing someone with back pain to take regular breaks away from their desk for exercise. Employers will not be bound to implement the doctor’s suggested changes, which will be provided at the discretion of employers and with the agreement of the employee. Where no changes are made, the medical statement should be considered as evidence of the individual being unfit for work for sick pay purposes.
Answers to common questions about the Statement of Fitness for Work
You'll normally stop paying SSP when an employee comes back to work. But you may also need to stop paying SSP if:
You can read more about when an employee can be disqualified from getting SSP in the HMRC publication E14, 'Employer Helpbook for Statutory Sick Pay'.
If an employee stops being entitled to SSP:
If your employee's got a long-term illness and you know in advance that they'll be off for more than 28 weeks you can complete SSP1 in advance. This means they'll be able to claim Employment and Support Allowance without delay.
Go to form SSP1 'Statutory Sick Pay and an employee's claim for benefit'
Download E14, 'Employer Helpbook for Statutory Sick Pay' (PDF 212K)
If your employee is often away sick - or they're off work for a long time - you may want to get medical advice about their condition. You can read more about how to do this in the HMRC publication E14, 'Employer Helpbook for Statutory Sick Pay'.
If you determine that your employee is capable of work, stop paying them SSP. Explain your decision to them and give them form SSP1. You can also stop paying SSP if your employee refuses consent for you to get medical advice about their fitness for work.
Go to form SSP1 'Statutory Sick Pay and an employee's claim for benefit'
If your employee doesn't agree with your decision not to pay them SSP they can ask HMRC to make a formal decision about their entitlement. You can read more about what happens if HMRC is asked to decide in the HMRC publication E14, 'Employer Helpbook for Statutory Sick Pay'.
You normally pay SSP in the same way as you pay wages - and at the same time.
SSP payments have to be money. You can't give something else instead, such as:
The easiest way to work out and record your SSP payments is to use commercial payroll software or HMRC's SSP Calculator.
Calculating and recovering SSP
You must keep various records to help HMRC check you're operating the SSP scheme correctly including:
You can use form SSP2 to record this information – an interactive form is available within HMRC's Basic PAYE Tools package or download it using the link below or you can order paper copies from the Employer Orderline.
Use and retain a copy of form SSP1 - or your own equivalent - when your employee has had the maximum amount of SSP and needs to claim ESA.
Go to form SSP2 Employee's statement of sickness
Go to form SSP1 'Statutory Sick Pay and an employee's claim for benefit'
You can opt out of the full SSP scheme if you keep paying your employees normally or give them occupational sick pay that's at least as much as SSP when they're ill.
However, you'll still need to keep records of:
You'll also need to record any SSP you've paid on the following:
Remember that almost all employers are required to file their Employer Annual Return (P35 and P14s) online with HMRC. For more information, including details of the exemptions that apply, follow the link below.
If you use the Simplified Deduction Scheme for domestic employees, you'll need to record your SSP payments on different forms:
Payroll calculations and records: an introduction
Filing your Employer Annual Return online: P35 and P14s
Simplified PAYE for domestic employees
You'll find a glossary of SSP terms in the E14, 'Employer Helpbook for Statutory Sick Pay'.
Download E14, 'Employer Helpbook for Statutory Sick Pay' (PDF 212K)
If you can't find what you need - and have already checked the related guide on how to calculate SSP and the HMRC publication E14, 'Employer Helpbook for Statutory Sick Pay' - you can ask a question through HMRC's email query service.
Use the SSP email query service
Alternatively you get advice from the Employer Helpline.
Find contact details for HMRC's Employer Helpline
Read about managing absence and sickness on the Business Link website (Opens new window)
Read 'Fit Notes' guidelines on the Department for Work and Pensions website (Opens new window)
