{"id":136,"date":"2022-09-27T15:31:50","date_gmt":"2022-09-27T14:31:50","guid":{"rendered":"https:\/\/sense.hr\/blog\/?p=136"},"modified":"2025-09-27T08:03:39","modified_gmt":"2025-09-27T07:03:39","slug":"statutory-sick-pay-ssp-and-occupation-sick-pay-osp","status":"publish","type":"post","link":"https:\/\/senseworkplace.com\/blog\/statutory-sick-pay-ssp-and-occupation-sick-pay-osp\/","title":{"rendered":"Statutory Sick Pay (SSP) and Occupation Sick Pay (OSP)\u00a0"},"content":{"rendered":"\n<p>Let\u2019s get down with the sickness!&nbsp;<\/p>\n\n\n\n<p>It\u2019s an offer that everyone would rather refuse, but sickness is an inevitable part of managing a workforce. And that means sick pay. Still, it can be relatively painless if you know what it\u2019s all about.&nbsp;&nbsp;<\/p>\n\n\n\n<p>So, take a deep breath and bite down on this stick\u2014we\u2019ll try to make this quick.&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What is Statutory Sick Pay (SSP)?&nbsp;<\/h2>\n\n\n\n<p>From 1983 and under the <a href=\"https:\/\/www.legislation.gov.uk\/ukpga\/1982\/24\/contents\" target=\"_blank\" rel=\"noreferrer noopener\">Social Security and Housing Benefits Act 1982<\/a> employers in Great Britain became responsible for paying SSP for the first 8 weeks of illness but were reimbursed for payments. But in 2014 even the percentage threshold scheme (PTS), which allowed smaller employees to reclaim any amount of statutory sick pay (SSP) exceeding 13% of their National Insurance Contributions (NICs) bill for the month, was scrapped. And now all employers are responsible for paying Statutory Sick Pay for the first 28 weeks of illness if certain conditions are met by their employees.&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What are the conditions?&nbsp;<\/h2>\n\n\n\n<p>Only those with the employment status of an <a href=\"https:\/\/www.gov.uk\/employment-status\/employee\" target=\"_blank\" rel=\"noreferrer noopener\">employee<\/a> have the right to receive SSP and they still accrue <a href=\"\/blog\/minimum-holiday-pay-entitlement-regulations-in-the-uk-hows-it-calculated-who-gets-it-and-why\/\" target=\"_blank\" rel=\"noreferrer noopener\">annual leave<\/a> during periods of sickness. And while <a href=\"https:\/\/www.gov.uk\/employment-status\/worker\" target=\"_blank\" rel=\"noreferrer noopener\">workers<\/a> have recently been afforded <a href=\"https:\/\/www.supremecourt.uk\/cases\/docs\/uksc-2019-0029-judgment.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">more statutory rights<\/a>, the right to sick pay isn\u2019t one of them.\u00a0\u00a0<\/p>\n\n\n\n<p>Other than being an employee, a person must:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Have completed some work for you. So, if your new starter calls in sick on their first day at work, you don\u2019t have to pay them SSP.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Have been ill for more than 4 days in a row. The first 3 days are considered waiting days and aren\u2019t paid. And even if an employee comes in and works for one minute before going home, that day will not count as a qualifying waiting day. The only instance that a 3-day waiting period doesn\u2019t apply, is if they\u2019ve been off within the last 8 weeks, which is considered a linked sickness.&nbsp;&nbsp;<\/li>\n\n\n\n<li>Earn an average of at least \u00a3123 a week.&nbsp;<\/li>\n\n\n\n<li>Let you know within 7 days or in line with your sickness policy. You don&#8217;t have to pay SSP for any days that they were late in telling you unless there\u2019s a good reason for why they were late. And you can\u2019t insist they tell you in person or use a particular method or form.&nbsp;<\/li>\n\n\n\n<li>Be available to work if it wasn\u2019t for the illness. So, if they\u2019re on strike or incarcerated, you\u2019re not obliged to pay SSP.&nbsp;<\/li>\n\n\n\n<li>Provide a <a href=\"https:\/\/www.gov.uk\/government\/publications\/fit-note-guidance-for-employers-and-line-managers\" target=\"_blank\" rel=\"noreferrer noopener\">fit note<\/a> (often called a \u2018sick note\u2019) after 7 days of consecutive illness, including non-working days, if you request one. But you can\u2019t withhold sick pay for a late fit note. And fit notes must be issued by either a GP or hospital doctor, a registered nurse, an occupational therapist, a pharmacist, or a physiotherapist. The last three can provide an Allied Health Professional (AHP) Health and Work Report in place of a fit note, but only if you agree.&nbsp;&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>&nbsp;<br>If all the conditions are met, and an employee isn\u2019t on strike or already receiving maternity allowance, then you\u2019re legally obliged to pay SSP. And an employee\u2019s right to sick pay only ends when their contract ends\u2014even if your organisation ceases trading.&nbsp;<\/p>\n\n\n\n<p>If an employee doesn\u2019t qualify for sick pay, you must send them <a href=\"https:\/\/www.gov.uk\/government\/publications\/statutory-sick-pay-employee-not-entitled-form-for-employers\" target=\"_blank\" rel=\"noreferrer noopener\">form SSP1<\/a> within 7 days of getting sick. Likewise, if they\u2019re approaching the maximum SSP of 28 weeks and their illness is likely to last longer than the remaining allowance, you must send them form SSP1 on or before the beginning of the 23rd week of sickness. This supports any application for\u202f<a href=\"https:\/\/www.gov.uk\/universal-credit\" target=\"_blank\" rel=\"noreferrer noopener\">Universal Credit<\/a>\u202for\u202f<a href=\"https:\/\/www.gov.uk\/employment-support-allowance\" target=\"_blank\" rel=\"noreferrer noopener\">Employment and Support Allowance (ESA)<\/a>.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How do I pay and how do I calculate SSP?&nbsp;<\/h2>\n\n\n\n<p>The weekly SSP rate for 2022\/23 is \u00a399.35, irrespective of earnings over \u00a3123 or working patterns. It\u2019s paid in place of wages or salary, in the usual way for your organisation, and deducting tax and National insurance.&nbsp;<\/p>\n\n\n\n<p>To calculate the daily rate, simply divide the weekly rate of \u00a399.35 by the number of qualifying days or working days for that employee. Multiply that figure by the total usual working days that have been taken off sick for the total SSP owed.&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<p>Here\u2019s an example:&nbsp;<\/p>\n\n\n\n<p>Sheila works from Monday to Friday every week. She\u2019s been off sick from Monday 5<sup>th<\/sup> September. You\u2019d start paying Shelia SSP at a daily rate of \u00a319.87 (\u00a399.35 \u00f7 5) on Thursday 8<sup>th<\/sup> September. &nbsp;<br>&nbsp;<br>Eek! Get well Sheila because you\u2019re unlikely to cover your soaring energy bills with that.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Luckily for Sheila her organisation is one of an increasing number to recognise that <a href=\"https:\/\/www.tuc.org.uk\/research-analysis\/reports\/sick-pay-works\" target=\"_blank\" rel=\"noreferrer noopener\">SSP is inadequate<\/a>. In most EU countries, the proportion of an individual\u2019s wages that are covered by sickness benefits ranges between 70 per cent and 100 per cent, compared to the UK\u2019s rock-bottom replacement rate of just 20 per cent. In fact, two-fifths of workers say they\u2019d be forced into debt or arrears on their bills, if their income dropped to the current level of statutory sick pay (SSP).&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">So, what\u2019s occupational sick pay (OSP)?&nbsp;<\/h2>\n\n\n\n<p>Most people-focused organisations can avoid high staff-turnover and protect their team by offering a higher entitlement as part of an occupational sick pay scheme. Such benefits packages are usually based on wage or salary. For example, you might offer full pay for the first eight weeks of sick leave and then half pay or statutory pay only for the remaining 20 weeks. But unlike SSP, it\u2019s entirely up to you.&nbsp;<\/p>\n\n\n\n<p>For organisations that do offer OSP, it\u2019s important that HR professionals consider the following:&nbsp;<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Any enhanced scheme offered to employees should be outlined in their terms of employment.&nbsp;<\/li>\n<\/ol>\n\n\n\n<ol start=\"2\" class=\"wp-block-list\">\n<li>It\u2019s important that the benefits are explicitly stated within an employee\u2019s contract, to avoid unintended legal implications. For example, is no duration is specified, then a reasonable duration will be implied (<em>Howman v Blyth<\/em>\u202f[1983] IRLR 139).&nbsp;<\/li>\n<\/ol>\n\n\n\n<ol start=\"3\" class=\"wp-block-list\">\n<li>Terms relating to withholding OSP should be set out in the employee\u2019s contract. Otherwise, the employer risks <a href=\"https:\/\/www.legislation.gov.uk\/ukpga\/1996\/18\/section\/13\" target=\"_blank\" rel=\"noreferrer noopener\">unlawfully deducting wages<\/a>.&nbsp;<\/li>\n<\/ol>\n\n\n\n<ol start=\"4\" class=\"wp-block-list\">\n<li>HR departments must be very careful when stopping any discretionary sick pay to avoid allegations of discrimination under the Equality Act 2010.&nbsp;<\/li>\n<\/ol>\n\n\n\n<p>We suggest clearly laying out an occupational sick pay scheme policy in a worker\u2019s employment contract and\/or staff handbook. Explain the scheme, the qualifying period of service required, how sickness is recorded, and the duration of the scheme. It&#8217;s also sensible to explain the procedure after occupational sick pay runs out and any exclusions, such as professional sports injuries or working for private gain for another company.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Using software to manage sickness&nbsp;<\/h2>\n\n\n\n<p>Just like any statutory employment rights, sick pay regulations are updated regularly. And the increase in staff sickness throughout the pandemic raised serious questions about the effectiveness of the SSP scheme\u2014particularly its failure to protect the lowest paid and most vulnerable members of our society. So, it seems likely that SSP rules will be overhauled in the coming years.&nbsp;&nbsp;<\/p>\n\n\n\n<p>To make sure that your organisation stays compliant it\u2019s a good idea to consider software that manages SSP, OSP, and any changing regulations. Good HR software solutions can track and automate employee sickness data, manage sick pay schemes, and give employees a self-service portal to manage and track their own data. And line managers and HR managers can manage sickness, as well as view and report on trends at the touch of a button.&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<p>Since we all have to get down with the sickness at some point, might as well make the experience as painless as possible for everyone involved.&nbsp;<\/p>\n\n\n\n<p>So, cosy up with SenseHR. We\u2019ll take care of you and your people, through flu season and beyond. Now, that\u2019s better than a cup of Lemsip, an 18-tog duvet, and binge-worthy boxset.&nbsp;&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Let\u2019s get down with the sickness! It\u2019s an offer that you can\u2019t refuse\u2014however much you might want to\u2014because sickness is an unavoidable part of life and work. So, take a deep breath and pull off that plaster\u2026 it\u2019s time to talk sick pay.  <\/p>\n","protected":false},"author":7,"featured_media":137,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-136","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-compensation-rewards"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v19.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Statutory Sick Pay (SSP) and Occupation Sick Pay (OSP)<\/title>\n<meta name=\"description\" content=\"Let\u2019s get down with the sickness! 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