Guide

Statutory Sick Pay: employer guide

How Statutory Sick Pay works for employers: day-one eligibility, no waiting days, no lower earnings limit, and the percentage-based rate calculation. Includes payroll system requirements, rate calculation examples, and compliance checklist.

UK-wide

Statutory Sick Pay (SSP) is payable from the first day of sickness absence to all employees, regardless of earnings. This guide explains the current SSP rules, how to calculate the rate, and what employers must do to comply.

Ensure your payroll is up to date: All employers must have payroll systems and policies that reflect the current SSP rules. Low-paid employees who were previously ineligible now qualify for SSP.

How SSP works

There are three key features of the current SSP rules:

No waiting days
SSP is payable from day one of sickness (there are no unpaid waiting days)
No lower earnings limit
All employees are eligible regardless of earnings
Rate calculation
80% of weekly earnings OR the flat rate, whichever is lower

Who is eligible

Employees covered

  • All employees are eligible for SSP from their first day of employment
  • Part-time workers earning less than £125/week
  • Casual workers with low hours
  • Workers on variable pay

All employees benefit from

  • SSP from day one of sickness - no unpaid waiting period
  • This applies to every period of sickness absence

Payroll system requirements

Your payroll system must be configured to:

  1. Pay SSP from first qualifying day: There are no waiting days
  2. No minimum earnings test: There is no lower earnings limit for SSP eligibility
  3. Calculate 80% rate: For each employee, calculate 80% of average weekly earnings
  4. Apply the lower rate: Compare the 80% calculation to the flat rate and pay the lower amount

Contact your payroll provider: If you use payroll software or an outsourced payroll service, confirm they are configured correctly for the current SSP rules.

Rate calculation examples

Employee earning £500/week
80% = £400. Flat rate = £123.25. Pay £123.25
Employee earning £200/week
80% = £160. Flat rate = £123.25. Pay £123.25
Employee earning £150/week
80% = £120. Flat rate = £123.25. Pay £120
Employee earning £100/week
80% = £80. Flat rate = £123.25. Pay £80

Policy and procedure updates

Review and update:

  • Sickness absence policy: Ensure there are no references to waiting days or a lower earnings limit
  • Employee handbook: Update SSP entitlement section
  • Manager guidance: Train managers on the current rules
  • Payroll procedures: Document the calculation process

Compliance checklist

  1. Confirm payroll system is correctly configured for current SSP rules
  2. Identify any employees who may not be receiving SSP correctly
  3. Update sickness absence policies
  4. Communicate SSP entitlements to employees
  5. Train payroll staff and line managers
  6. Review impact on sickness absence budgets
  7. Consider impact on occupational sick pay schemes

Calculate Statutory Sick Pay

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