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Statutory Sick Pay: an overview

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 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 us.

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.

On this page:

SSP - employer obligations

As an employer you're responsible for operating the SSP scheme. You'll need to:

  • work out whether an employee meets the qualifying conditions (more below)
  • calculate how much SSP they're due
  • pay the SSP to them
  • keep a record of the SSP you pay

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.

Find out how to create a written statement of employment particulars on the Business Link website

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SSP rates

The weekly rate of SSP for days of sickness from 6 April 2008 is £75.40, our 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 Helpbook E14, 'What to do if your employee is sick'.

Calculating and recovering Statutory Sick Pay

Check SSP daily rates in Helpbook E14

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Is your employee entitled to SSP?

You only need to pay SSP to an employee if they meet the qualifying conditions set out below.

Qualifying conditions

An employee must meet all the following conditions to get SSP:

  • They must be your employee - and they'll need to have done some work under their employment contract before going off sick.
  • The days they're off sick must make up part of a 'period of incapacity for work' (PIW) - explained below.
  • The days they're getting SSP for must be qualifying days - these are days they normally work.
  • Their earnings must be at least as much as the lower earnings limit for National Insurance contributions (NICs). This is £90 a week for 2008-09.
  • They can't have already received the maximum amount of SSP for the PIW - or for a series of linked PIWs (28 weeks).
  • They must have notified you about their sickness - either within your own time limit or within seven days.
  • They must give evidence of their incapacity.

In practice most employees who are absent from work because they're sick qualify. Part-time, casual and temporary employees can also get SSP as long as they meet the qualifying conditions. It's also payable to agency workers whose contracts last for at least 13 weeks.

You can read about how to work out if an employee earns enough to get SSP in the Helpbook E14, 'What to do if your employee is sick'. This also includes information on employees who are specifically excluded from the SSP scheme.

Read Helpbook E14, 'What to do if your employee is sick'

Period of incapacity for work

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.

Linked PIWs

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 SSP Calculator on our website or on the Employer CD-Rom to work out if two or more PIWs are linked. Alternatively you can use the tables in Helpbook E14 'What to do if your employee is sick'.

Use the SSP Calculator online to see if several PIWs are linked

When to start paying SSP

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 your employee isn't entitled to SSP

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. They can then claim Employment and Support Allowance (ESA) from their local Jobcentre Plus or Social Security Office. (ESA replaces Incapacity Benefit for new claimants on or after 27 October 2008).

Get form SSP1 from the Department for Work and Pensions (DWP) website

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Key steps in the SSP process

There are several important steps in the SSP process. They are:

  • Working out whether your employee is eligible for SSP and that they've met all the qualifying conditions.
  • Checking the employee has told you they're sick within the required time limits.
  • Checking the employee has given proper evidence of their incapacity. Make sure your employees know what evidence is needed - including when they can self-certify and when they need a doctor's note.

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 Helpbook E14, 'What to do if your employee is sick'.

If you decide that SSP is payable, start paying it from the first qualifying day after the waiting days.

Read about how to calculate and recover SSP payments

Read Helpbook E14, 'What to do if your employee is sick'

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When to stop paying SSP

You'll normally stop paying SSP when an employee comes back to work. But you may also need to stop paying SSP if:

  • your employee is still off sick but they've had the maximum amount of SSP payable - 28 weeks in one PIW or in several linked PIWs
  • they've had linked periods of sickness over three years - you must stop paying SSP after three years even if your employee hasn't had 28 weeks of SSP
  • they're disqualified from receiving SSP

You can read more about when an employee can be disqualified from getting SSP in our Helpbook E14.

If an employee stops being entitled to SSP:

  • calculate any SSP still owing and pay it to them on the next pay day
  • complete form SSP1 so they can claim ESA. (ESA replaces Incapacity Benefit for new claimants on or after 27 October 2008).

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 Incapacity Benefit without delay.

Go to form SSP1 on the Department for Work and Pensions (DWP) website

Read Helpbook E14, 'What to do if your employee is sick'

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SSP and long or frequent absences

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 Helpbook E14.

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 from the DWP website

If your employee doesn't agree with your decision

If your employee doesn't agree with your decision not to pay them SSP they can ask us to make a formal decision about their entitlement. You can read more about what happens if we're asked to decide in the Helpbook, E14 'What to do if your employee is sick'.

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Calculating and paying SSP

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:

  • payments in kind - eg goods
  • board and lodging
  • other services

The easiest way to work out and record your SSP payments is to use commercial payroll software or our SSP Calculator.

Read about how to calculate, record and recover SSP payments

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Forms and record-keeping

You must keep various records to help us check you're operating the SSP scheme correctly including:

  • all sickness periods lasting for four days in a row or longer
  • all SSP payments you make

You can use form SSP2 to record this information - available on the Employer CD-Rom or from our website. You can also order it from the Employer Orderline on Tel 08457 646 646 or textphone 0800 959 598, open from 8.00 am to 8.00 pm, Monday to Friday and from 10.00 am to 1.00 pm, Saturday, except Christmas Day, Boxing Day and New Year's Day.

Use form SSP1 - or your own equivalent - when your employee has had the maximum amount of SSP and needs to claim ESA on or after 27 October 2008.

Use SSP1(L) if an employee leaves while they're getting SSP. However from 27 October 2008, employers are no longer required to complete form SSP1(L) when an employee leaves. Any period of SSP with a previous employer no longer counts towards an employee’s maximum entitlement. Keep copies of both of these forms.

Go to form SSP2 Employee's statement of sickness

Go to form SSP1 on the DWP website

Go to form SSP1(L) Leaver's statement of Statutory Sick Pay

Record keeping for employers who opt out of SSP

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:

  • all sickness periods of four days and more
  • the occupational sick pay or normal earnings you paid

Other forms you will need

You'll also need to record any SSP you've paid on the following forms:

  • P11 Deductions Working Sheet
  • P14 End of year summary
  • P35 Employer Annual Return

Or if you use the Simplified Deduction Scheme for domestic employees:

  • P12 Simplified Deduction Card
  • P37 Employer Annual Return

Find out about recording payments and deductions on form P11

Find out about completing form P14 End of year summary and P35

Read about the Simplified Deduction Scheme for domestic employees

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Help and advice

You'll find a glossary of SSP terms in our Helpbook E14, 'What to do if your employee is sick'.

You can also find quick answers to the most commonly asked questions about SSP by following the link below.

Quick answers to common questions on SSP

If you still can't find what you need - and have already checked our related guide on how to calculate SSP and the E14 Helpbook - you can ask a question through our email query service .

Use the SSP email query service

Alternatively you get advice from our Employer Helpline on Tel 08457 143 143, open from 8.00 am to 8.00 pm, Monday to Friday and from 8.00 am to 5.00 pm, Saturday and Sunday, except Christmas Day, Boxing Day and New Year's Day.

More useful links

Read about managing absence and sickness on the Business Link website

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