SSP for Employers

Understanding SSP obligations helps employers manage sickness absence properly and stay compliant.

Employer SSP Obligations

Legal Requirements

Employers must:

Requirement	Detail
Pay SSP	To eligible employees
Process correctly	Right amounts and timing
Keep records	For 3 years
Issue SSP1	If not paying SSP

SSP Is Compulsory

Cannot Do	Must Do
Opt out of SSP	Pay if employee eligible
Require employees to waive	Follow statutory rules
Pay less than SSP	At least SSP rate

Eligibility Assessment

Checking Eligibility

When employee reports sick, check:

Criterion	How to Check
Employee status	Employment contract
Period of incapacity	4+ consecutive days (non-working days count)
Notification	Within your deadline

There is no earnings criterion. The Lower Earnings Limit was removed as a condition of SSP entitlement on 6 April 2026, so do not screen anyone out on pay. Earnings now affect the amount, not eligibility.

Calculating Average Earnings

You still need average weekly earnings, but to work out the amount rather than to test eligibility.

Step	Action
1	Identify relevant period (8 weeks)
2	Total gross earnings
3	Divide by 8
4	Take 80% of the result
5	Pay that, or £123.25, whichever is lower

Notification

Your Deadline	What to Accept
Set your own	Reasonable notification
If not set	7 days default
Be reasonable	Sick employee may struggle

Processing SSP

When to Start

Day	Action
Day 1-3	Waiting days - no SSP
Day 4+	SSP payable
Day 8+	Fit note required

Qualifying Days

Qualifying Days	SSP Paid For
Usually working days	Mon-Fri if full-time
Agree with employee	Can be different
Must be regular	Consistent pattern

SSP Rate

Period	Rate (2026-27)
Per week	Lower of £123.25 or 80% of average weekly earnings
Per qualifying day	Weekly amount / number of QDs per week
Per week, earner above £154.06	£123.25

Payment

Method	Timing
Normal payroll	With regular pay
Same cycle	As usual wages
Tax/NI	Apply as normal

Record Keeping

What to Record

Record	Detail
Sickness dates	Start and end
SSP paid	Amounts and dates
Non-payment reasons	If SSP refused
Employee details	Name, NI number
Fit notes	After 7 days

Retention

Period	Requirement
3 years	Minimum retention
After last SSP	From that date
Accessible	For HMRC inspection

Evidence to Keep

Document	Purpose
Self-certification	First 7 days
Fit notes	Day 8 onwards
Notification records	Proof of compliance
Payment records	SSP calculations

If Employee Doesn't Qualify

Issue Form SSP1

When not paying SSP, issue SSP1:

Timing	Within
When decided	7 days
If leaving	At termination

SSP1 Content

Information	Purpose
Why no SSP	Reason for refusal
Employee details	For benefit claim
Employer details	Identification

Common Reasons

Reason	SSP1 Code
Below earnings threshold	Appropriate box
Not employee	Employment status
Exhausted SSP	28 weeks used
Not sick long enough	Under 4 days

28-Week Limit

Tracking SSP Usage

Task	Action
Monitor usage	Running total
Warn employee	As limit approaches
Issue SSP1	When exhausted

Linking Periods

Gap Between Absences	Effect
8 weeks or less	Periods link
More than 8 weeks	New 28 weeks

Absence Management

During SSP

Action	Purpose
Maintain contact	Keep relationship
Support return	Offer adjustments
Monitor patterns	Identify issues
Document	Keep records

Return to Work

Good Practice	Benefit
Return to work meeting	Understand situation
Phased return	Support recovery
Adjustments	Enable return
Document	Record discussions

SSP and Contracts

Above SSP

You can offer more:

Option	Effect
Occupational sick pay	Your scheme
Enhanced SSP	Pay more
Longer coverage	Beyond 28 weeks

Contractual Terms

Consider	Detail
Sick pay policy	Clear terms
Notification requirements	Set your deadline
Evidence required	What you need
Exhaustion	What happens after

Common Employer Mistakes

Process Errors

Mistake	Consequence
Not paying SSP	Employee claim
Wrong amount	Underpayment
Still deducting waiting days	Underpayment — abolished 6 April 2026
Screening out low earners on the old LEL	Unlawful refusal of SSP
Paying the flat rate to someone under £154.06/week	Overpayment
No records	HMRC issues

Legal Errors

Mistake	Risk
Refusing eligible employee	Legal claim
Not issuing SSP1	Employee can't claim benefits
Dismissing for sickness	Unfair dismissal
Discriminating	Disability discrimination

HMRC Compliance

Inspections

HMRC can:

Power	What They Do
Request records	Review SSP compliance
Inspect premises	Check systems
Interview staff	Gather information
Issue penalties	For non-compliance

Penalties

Failure	Consequence
Not paying SSP	Pay arrears + penalty
No records	Fixed penalty
False records	Criminal proceedings

Practical Systems

What You Need

System	Purpose
Absence tracking	Monitor sickness
Payroll setup	SSP calculation
Document storage	Fit notes, records
Communication	Contact with employee

Process Checklist

Step	Action
1	Receive absence notification
2	Check eligibility
3	Calculate SSP
4	Process through payroll
5	Obtain fit notes (if 7+ days)
6	Keep records
7	Support return

Disputes

If Employee Challenges

Issue	Action
Eligibility dispute	Review and explain
Amount dispute	Check calculation
Formal complaint	Follow process
HMRC involved	Cooperate

HMRC Decision

If Employee Complains	What Happens
HMRC investigates	Reviews case
Makes decision	Binding
Orders payment	If SSP owed

Business Planning

Budgeting for SSP

Consideration	Action
Average absence rates	Budget accordingly
High-risk roles	Consider insurance
Cash flow	Plan for payments

Insurance

Some employers have:

Insurance	Coverage
Absence insurance	Reimbursement
PHI	Long-term illness
Health insurance	Faster treatment

Tips for Employers

Best Practice

Practice	Benefit
Clear policy	Everyone knows rules
Good records	Easy compliance
Supportive approach	Better retention
Early intervention	Reduce absence

Managing Costs

Strategy	Effect
Occupational health	Early intervention
Return to work programs	Faster recovery
Workplace wellbeing	Prevention
Flexible working	Accommodate needs