Are you calculating Statutory Sick Pay (SSP) for your employees correctly? Our handy hints will tell you everything you need to know…
1– For Sickness Only
Statutory Sick Pay is for workers who have an ‘incapacity to work’ due to not being fit for work. SSP is not due for when workers are not able to attend work as they are required to care for a friend / family member.
2– Four days or more of sickness.
In order to count as a ‘Period of Incapacity for Work’ sickness must last for a period of 4 days or more. This including weekends, bank holidays and none working days. If a period lasts 3 days or less, you don’t need to do anything and SSP is not due.
3– Qualifying days
Qualifying days are the workers normal working days i.e. if you have a part time worker who works on a Monday and Tuesday their qualifying days are Monday and Tuesday. These are the only days that can be classed as waiting days or be paid for SSP.
4– Waiting days
The first 3 qualifying days are classed as waiting days. No SSP is due for waiting days.
5– Minimum Average Weekly Earnings Threshold of £116
Statutory Sick Pay is only due if the average weekly earnings are £116 or above. The average is taken from the 8 weeks prior to the last pay date before the sickness. If the worker has worked less than 8 weeks, the relevant period is changed to the number of weeks worked.
6– Maximum of 28 weeks
An employer must pay Statutory Sick Pay for a maximum of 28 weeks. If an employee is still sick beyond the maximum 28 weeks an SSP1 form must be issued (click here for more details on SSP1 forms).
7– Deductions from Statutory Sick Pay
Statutory Sick Pay is subject to tax and NI as normal. SSP also counts as qualifying earnings for auto-enrolment pension calculations.
Statutory Sick Pay is currently £92.05 per week. In order to calculate the daily amount, you divide £92.05 by the number of normal working days (i.e. qualifying days).