Statutory Sick Pay amount SSP and PAYE/NI refund

Claiming sickness benefit through PAYE
Not refundable to the employer - Statutory Sick Pay SSP paid from 6th April 2014 onwards.

What normally applies:

Statutory Sick Pay SSP after four working days
Statutory Sick Pay SSP is not payable for one, two or three days off work sick.

Short period of sickness

  • Employee days off work sick pay.
  • Your employee becomes sick and notifies you within seven days.
  • They may use SC2 form Statutory Sick Pay form (SSP form) Employee's statement of sickness.
  • You are not paying the normal salary or wage during sickness.
  • It is advisable that terms for sick pay are included in a written contract of employment.
  • up to :
  • They have earned an average of more than , over the previous eight weeks, in their employment with you.
  • from
  • They have earned an average of more than , over the previous eight weeks, in their employment with you.
  • This is the National Insurance Lower Earnings Limit NI LEL threshold.
  • They remain sick for four or more calendar days i.e. including any days when they were not due to work.
  • They remain sick for four working days.
  • Statutory Sick Pay is payable on the next normal pay day.
  • For the fourth and subsequent working days i.e the first three working days are not payable.
  • All subsequent days are payable.
  • Sick pay per day; when working 5 days per week
  • up to :
  • The payment rate is per day.
  • So if they are sick for only five working days pay is 2 days x = .
  • If they are sick for ten working days Statutory Sick Pay SSP is 7 days x =.
  • from :
  • The payment rate is per day.
  • So if they are sick for only five working days pay is 2 days x = .
  • If they are sick for ten working days Statutory Sick Pay SSP is 7 days x = .
  • They return to work and you stop paying Statutory Sick Pay SSP and start paying regular wages or salary.

Longer period of sickness

  • After seven calendar days the employee should provide a Statement of Fitness for Work from their doctor.
  • After that it is for the employer to determine what evidence needs to be produced for continuing periods of sickness.
  • It is advisable that these terms are included in a written contract of employment.

Recovery of Statutory Sick Pay SSP paid from PAYE/NI - Ended 5th April 2014

  • Employer PAYE refund; recovering statutory sick pay - NI refund
  • You can get back SSP based on the 'Percentage Threshold Scheme' (PTS) test:
  • For each payroll month - which are all pay days between 6th to 5th of the following month.
  • What is your class 1 national insurance payable in the payroll month?
  • Calculate 13% of this.
  • What is the total amount of Statutory Sick Pay paid in that payroll month to all employees?
  • Deduct the 13% of the class 1 national insurance payable from the amount of Statutory Sick Pay paid and deduct this figure (which could be zero) from your PAYE/NI payment.
  • Therefore employers do get statutory sick pay refunded less 13% of total NI payable.
  • Repeat the calculation for any subsequent months.
  • Where we are preparing your payroll the recovery of SSP calculations are already made within the service; automatically recovering SSP as you pay your PAYE/NI contributions.
  • Using your own purchased payroll software, the calculations may be included.

Long-term sickness

  • How long
  • If the period of Statutory Sick Pay exceeds 28 weeks you stop paying Statutory Sick Pay and refer them to state benefits Employment and Support Allowance ESA by completing a form SSP1 Statutory Sick Pay form and an employee's claim for benefit.
  • Where there are breaks in the claims which are less than eight weeks the 28 week count continues.
  • If the 28 weeks are not accumulated during a period of three years, under the less than eight weeks test, Statutory Sick Pay stops and state benefits start by completing a form SSP1 Statutory Sick Pay form and an employee's claim for benefit.

There are a number of more complex scenarios and we suggest that you contact us or view HMRC guidance at www.hmrc.gov.uk/.../ssp-overview.htm

Not entitled to Statutory Sick Pay SSP
SSP1 Statutory Sick Pay form and an employee's claim for benefit - general

  • If you are an employer:
  • you must fill in this form when an employee is sick but not entitled to Statutory Sick Pay SSP.
  • If you are an employee:
  • your employer needs to give you this form when you are sick and you cannot get Statutory Sick Pay SSP, or because your Statutory Sick Pay SSP is coming to an end.
  • See the form SSP1 for all the various circumstances in which this situation arises.
  • See pages six and seven of the form:
  • Reasons why you cannot get SSP.
  • Contract of employment:
  • You have a contract of employment but have not started work.
  • After employment contract has come to an end or has been ended by the employer.
  • Other benefits:
  • Claiming:
  • Employment and Support Allowance.
  • Incapacity Benefit or Severe Disablement Allowance.
  • When Statutory Maternity Pay SMP or Maternity Allowance MA applies.
  • See special 18 week delay rules for expectant mothers not being paid SMP or MA.
  • Other reasons:
  • Industrial action starting before your Statutory Sick Pay SSP was due to start.
  • In legal custody or sentenced to a term of imprisonment.
  • Employed outside the United Kingdom UK on the day you first became sick unless employers Class 1 National Insurance is applicable.
  • See above:
  • After 28 weeks - Long-term sick.
  • Low earnings - Below National Insurance Lower Earnings Limit NI LEL , average over the previous eight weeks, in the employment.

This summary relates only to payment of Statutory Sick Pay SSP. There are wider issues of employment law which may apply.

Contact us about Statutory Sick Pay SSP and your payroll in general