How To Calculate Statutory Sick Pay

Calculate your statutory sick pay entitlement based on UK government rules

Comprehensive Guide to Calculating Statutory Sick Pay (SSP) in the UK

Statutory Sick Pay (SSP) is a legal requirement for employers in the UK to provide financial support to employees who are unable to work due to illness. Understanding how to calculate SSP correctly is essential for both employers and employees to ensure compliance with UK law and fair compensation during periods of sickness.

What is Statutory Sick Pay?

Statutory Sick Pay is a weekly payment made by employers to eligible employees who are off work sick for 4 or more days in a row (including non-working days). The current rate (as of 2023/24 tax year) is £109.40 per week, payable for up to 28 weeks.

Eligibility Criteria for SSP

To qualify for SSP, an employee must:

• Be classified as an employee (not self-employed or a contractor)
• Have done some work for their employer
• Earn at least £123 per week (the Lower Earnings Limit)
• Have been sick for at least 4 days in a row (including non-working days)
• Give their employer proper notice of their sickness
• Provide proof of sickness if requested after 7 days

How to Calculate Statutory Sick Pay

The calculation of SSP follows specific rules set by the UK government. Here’s a step-by-step breakdown:

1. Determine the Period of Incapacity for Work (PIW): This begins on the first day of sickness and continues until the employee is capable of returning to work, or until the maximum 28 weeks of SSP is reached.
2. Identify Qualifying Days: These are the days an employee would normally work. For full-time employees, this is typically Monday to Friday.
3. Calculate Waiting Days: The first 3 qualifying days of sickness are “waiting days” and are not paid. SSP starts from the 4th qualifying day.
4. Determine the Weekly Rate: The current weekly rate is £109.40 (2023/24). This is pro-rated for part-time workers based on their qualifying days.
5. Calculate Daily Rate: Divide the weekly rate by the number of qualifying days to get the daily rate.
6. Compute Total Payment: Multiply the daily rate by the number of qualifying days the employee is sick (after waiting days).

SSP Calculation Examples

Scenario	Employee Type	Weekly Earnings	Sick Days	SSP Payment
Full-time employee, 5-day week	Full-time	£500	10 days	£218.80 (10 days × £21.88 daily rate)
Part-time employee, 3-day week	Part-time	£150	14 days (6 qualifying days)	£109.40 (6 days × £18.23 daily rate)
Employee earning below threshold	Full-time	£100	7 days	£0 (not eligible)

Common SSP Scenarios and Special Cases

1. Employees with Multiple Jobs: If an employee has more than one job, they may be entitled to SSP from each employer if they meet the eligibility criteria for each job separately.

2. Linked Periods of Sickness: If an employee has another period of sickness within 8 weeks of their last period, these are treated as “linked” and count as one continuous period for SSP purposes.

3. Employees on Furlough: During the COVID-19 pandemic, special rules applied to furloughed workers. Normally, furloughed employees would not qualify for SSP unless they were actually sick.

4. Employees with Variable Hours: For employees with irregular working patterns, qualifying days are based on their typical working pattern over the previous 8 weeks.

Employer Responsibilities for SSP

Employers have several important responsibilities regarding SSP:

• Keep records of all SSP payments made for at least 3 years
• Provide employees with a written statement of their SSP entitlement if requested
• Deduct tax and National Insurance from SSP payments as normal
• Report SSP payments through payroll and on the Full Payment Submission (FPS)
• Recover some SSP costs through the Percentage Threshold Scheme if total SSP paid exceeds 13% of Class 1 National Insurance contributions

Employee Rights and SSP

Employees have specific rights regarding SSP:

• The right to receive SSP if they meet the eligibility criteria
• The right to appeal if they believe they’ve been unfairly denied SSP
• The right to request a written statement of their SSP entitlement
• Protection from dismissal or detriment for taking sick leave or claiming SSP

SSP vs Occupational Sick Pay

Many employers offer occupational sick pay schemes that are more generous than the statutory minimum. These schemes are contractual and can vary significantly between employers.

Feature	Statutory Sick Pay (SSP)	Occupational Sick Pay
Legal Requirement	Yes (mandatory)	No (voluntary)
Minimum Payment	£109.40 per week	Varies by employer
Maximum Duration	28 weeks	Varies (often 6 months)
Eligibility	Earn ≥ £123/week	Set by employer
Waiting Period	3 days	Often none

Recent Changes to SSP Rules

The UK government periodically reviews and updates SSP regulations. Recent changes include:

• April 2023: The weekly SSP rate increased from £99.35 to £109.40
• April 2022: The Lower Earnings Limit increased from £120 to £123 per week
• COVID-19 Temporary Changes: During the pandemic, SSP was payable from day 1 (instead of day 4) for COVID-related absences, and the 3-day waiting period was temporarily removed

How to Claim SSP

Employees don’t need to make a formal claim for SSP. Instead:

1. The employee should notify their employer of their sickness absence according to the employer’s sickness reporting procedure
2. For absences of 7 days or more, the employee may need to provide a fit note (sick note) from a doctor
3. The employer should calculate and pay SSP through their normal payroll process
4. SSP should be paid on the normal payday, along with any other salary or wages due

What to Do If SSP Is Refused

If an employer refuses to pay SSP and the employee believes they’re entitled to it, they can:

• Ask the employer for a written explanation of why SSP isn’t being paid
• Check their eligibility using the GOV.UK SSP calculator
• Contact HMRC’s Statutory Payment Disputes Team if they still believe they’re entitled to SSP
• Seek advice from Citizens Advice or a trade union representative

Important Disclaimer: This calculator and guide provide general information only. They don’t constitute legal or financial advice. For specific advice about your situation, consult a qualified professional or visit the official UK government SSP page. SSP rules and rates may change annually.

Additional Resources

For more detailed information about Statutory Sick Pay, consult these authoritative sources:

• GOV.UK Statutory Sick Pay Guide – Official government information
• ACAS Sick Pay Advice – Advisory, Conciliation and Arbitration Service guidance
• Citizens Advice SSP Information – Independent advice on sick pay rights