Statutory sick pay (SSP)

By Tolley in association with Vince Ashall
  • (Updated for Budget 2020)

The following Employment Tax guidance note by Tolley in association with Vince Ashall provides comprehensive and up to date tax information covering:

  • Statutory sick pay (SSP)
  • Period of incapacity for work
  • Waiting days
  • Qualifying days
  • Evidence of sickness
  • Average weekly earnings
  • Linking
  • Other
  • Exclusions
  • Recovery of SSP (now withdrawn)
  • Fit for Work service
  • Opting out of SSP
  • Record keeping

For a detailed analysis of the changes announced at Spring Budget 2020 in respect of SSP, see the Measures announced at Spring Budget 2020 to support employers and employees affected by coronavirus news item.

Statutory sick pay has its origins in the Social Security & Housing Benefits Act 1982, Part 1. Various amendments have been made to this Act to give us the SSP system we now operate.

A table of acronyms and related terms used in this note is as follows:

AWEAverage weekly earnings
LELLower earnings limit
NICsNational insurance contributions
PIWPeriod of incapacity for work
PTSPercentage threshold scheme
QDsQualifying days
SC2Employee’s statement of sickness (self-certificate)
SSPStatutory sick pay

More on Mechanics of payroll: