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An outline of Statutory Sick Pay.
Sickness Benefit was paid as part of National Insurance. Statutory Sick Pay was introduced, administered by the employer, but funded by deduction of payments from PAYE/ NIC remittances. The funding has been reduced over a period of years so that the employer now bears all the cost, except when the SSP paid exceeds 13% of the gross national insurance contributions in any month.
The employer can determine which days of the week are qualifying days. Many employers select Monday to Friday as the qualifying days where this matches the working days. We often suggest that all seven days of the week are treated as qualifying days, even where employees normally work from Monday to Friday.
The first 3 qualifying days of a Period of Incapacity for Work (PIW or sickness) are waiting days and do not qualify for SSP (unless linked to a previous PIW).
Unless the employees average earnings over the last 8 weeks exceed £87 (2007/08) per week, no SSP is payable and the employer must complete form SSP1 for the employee to claim Incapacity Benefit from the Benefits Agency.
The rate of SSP for a full week is £72.55 (2007/08). The amount paid for a part week is a fraction of the full week based on qualifying non waiting days compared to qualifying days in the week.
SSP stops after 28 weeks of Incapacity for Work.
SSP is subject to Tax and National Insurance deductions.
See also Employment Status, Contract of Employment, Working Time Regulations, PAYE, NIC, SMP, SPP, SAP, NMW, Student Loans.
Reminder - disclaimer applies. Please feedback your comments. This page was last modified 17 May 2007.