Statutory sick pay (SSP)
By law, you must pay statutory sick pay (SSP) to all employees who are off work due to sickness and qualify for sick pay. Payroll contains the most up to date legislation and simplifies processing sick pay by automatically calculating SSP for you.
You can’t reclaim SSP for sick leave any more. This scheme was abolished from 6 April 2014.
You can also find information from GOV.UK.
The employee must be off sick for four or more days in a row. The amount due depends on their normal working days, these are the qualifying days. There’s no SSP due for the first three qualifying days they’re off sick. These are known as waiting days.
The employee’s average weekly earnings (AWE) in the relevant period must be at or above the lower earnings limit (LEL) for national insurance. If it’s less than £116.00 per week, the employee doesn’t qualify for SSP and you must give them form SC2..
The current rate of SSP is £92.05 per week. You can further information about entitlement and eligibility from GOV.UK..
If your employee is off sick for fewer than seven days, you can accept self-certification from them. This can be verbal, by letter or HMRC form SC2. It’s down to your company policy how an employee must inform you of sickness. You can only ask for a Statement of Fitness for Work, or fit note, if the employee is off sick for more than seven days.
To ensure the correct entitlement calculates, you should check the employee’s working pattern is correct. The working pattern determines where waiting days and qualifying days fall.
- 1. Go to Pay Runs, then click Process Pay Run.
- 2. Check the pay date is correct, then click Next.
- 3. Select the relevant employee, then click Add Absence.
- 4. Click Sickness, then complete the following details:
|Documentation Received||If the employee has provided you with evidence of their incapacity to work, choose Yes.
For extended sickness of up to seven working days, verbal evidence, a letter or an SC2 form is usually acceptable. For longer sicknesses, a doctor’s statement is usually required.
|Pregnancy-related Illness||If the sickness relates to the employee’s pregnancy, select this check box.|
|Start Date||Enter the start date of the period of sickness that qualifies for SSP.|
|End Date||Enter the end date of the period of sickness that qualifies for SSP.|
|Pension Earnings||If any payment made to the employee as SSP should be included in pensionable earnings, select this check box.|
|Qualifying Earnings||If any payment made to the employee as SSP should be included in qualifying earnings, select this check box.|
- 5. Click Save.
If there’s not enough information to calculate the average weekly earnings (AWE), this option appears:
|Issue certificate SSP1||If the employee isn’t entitled to SSP because their earnings are less than £116, click the SSP1 link and provide them with the form.|
|Manually set the AWE value||If you started using Payroll part-way through the tax year and there’s not enough history to calculate the average pay, select Manually set the AWE value > enter the average weekly pay.|
- 6. Click Save.
- 7. Complete the pay run as normal.
If you need to edit your SSP dates or values, or If you need to record absences in the current pay run but the absence dates belong to the previous pay run, you must post a