SSP for Employers Employer's guide to Statutory Sick Pay. Understand your obligations, how to process SSP, and record-keeping requirements.
Last updated: 30 January 2025 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 Earnings Payroll - £123/week average Period of incapacity 4+ consecutive days Notification Within your deadline
Calculating Average Earnings
Step Action 1 Identify relevant period (8 weeks) 2 Total gross earnings 3 Divide by 8 4 Compare to £123
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 (2024-25) Per qualifying day £116.75 / number of QDs per week Per week (5 QDs) £116.75
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 Wrong waiting days Miscalculation 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
Frequently Asked Questions
Do I have to pay SSP to employees? Yes, if they meet eligibility criteria: employee status, earning £123+/week average, sick for 4+ days, and proper notification given. SSP is a legal requirement - employers cannot opt out.
Can I recover SSP from HMRC? No, not anymore. The SSP recovery scheme ended in 2014. Employers must pay SSP from their own funds. However, you should factor SSP costs into your business planning and insurance considerations.
What records must I keep for SSP? Keep records for 3 years showing: dates of sickness, SSP paid, qualifying days, any days SSP wasn't paid and why. You also need evidence of notification and fit notes after 7 days. Disclaimer: This information is for general guidance only and does not constitute legal advice. Employment law is complex and changes frequently. For specific situations, consult ACAS, a qualified employment lawyer, or HR professional.