Statutory Sick Pay (SSP)

Employees in paid work who become sick may qualify for Statutory Sick Pay (SSP) which is payable by the employer, subject to eligibility and rules on notification (see page 16). Employers can opt out of the SSP scheme by providing an occupational scheme (OSP, see below) that is at least as good as the statutory scheme — an OSP may have different rules, but they cannot be worse than those for SSP. An understanding of SSP rules could be important for union reps even in a workplace where occupational sick pay (OSP) is payable.

The current rate of SSP is £88.45 per week. For a worker working a 37-hour week, it will be worth just over a third (35.7%) of the adult National Minimum Wage after the October 2015 NMW increase. It is a flat rate with no additions.

The value of SSP has been eroded due to government changes in the way benefits are uprated, and capping, and it has also been affected by the withdrawal of the Percentage Threshold Scheme (PTS) from April 2014. Under that scheme the cost of SSP could be recouped if it exceeded 13% of the employer’s total Class 1 National Insurance contributions for a particular month. Withdrawal of PTS was justified partly on the grounds that the government said it would help pay for new the Fit for Work service (see page 21).

Some employers have cited this (coupled with minimum wage increases) as a justification for reducing staff hours, which could potentially take some employees below the earnings threshold for SSP.