Statutory Sick Pay 2024: New Rates & Employer Duties

Running a business means juggling a lot, especially when it comes to employment law. One area that can easily get overlooked is Statutory Sick Pay (SSP) - but that would be a mistake! If you have employees or plan to hire soon, you’re legally obliged to keep up with the latest rules around sick pay. The Government updates these requirements regularly and, as of April 2024, there are some important changes you don’t want to miss. So, whether you’re wondering “What is SSP?” or just want a refresher on your duties, this guide will walk you through the essentials for 2024, including the new rates, eligibility criteria, and what the future might hold. Let’s make sure you’re protected - and your people are cared for - from day one.

What Is Statutory Sick Pay (SSP)?

Statutory Sick Pay (SSP) is the legal minimum amount employers must pay employees who can’t work due to illness or injury for at least four consecutive calendar days (including non-working days). It’s a statutory right under the Employment Rights Act 1996 and the Statutory Sick Pay (General) Regulations 1982, and applies to most employees on your payroll who qualify as “employed earners.” SSP ensures that workers who are too unwell to work don’t go without income. Employers can’t opt out of paying it, and you can’t substitute it with a lower amount. Failing to meet SSP obligations could result in employment disputes or even claims before an Employment Tribunal.

What’s Changed For Statutory Sick Pay In 2024?

Each April, the Government reviews the SSP rate at the start of the new tax year. Here’s what’s new for the 2024/25 financial year:

• New SSP weekly rate: £116.75 per week (from 6 April 2024).
• Previous SSP rate: £109.40 per week (2023/24).

Once an employee qualifies, you must pay SSP at this rate for each week (or pro-rata for part-weeks) of eligible sickness absence, for up to 28 weeks in any period of incapacity for work (PIW). Important: SSP is normally payable from the fourth qualifying day of sickness. The first three qualifying days are known as “waiting days” and are usually unpaid, unless the sickness period links to a previous absence within eight weeks. Paying less than the statutory rate (unless you offer a more generous company sick pay scheme) is a breach of your legal responsibilities as an employer.

Who Qualifies For Statutory Sick Pay?

Not every absence is covered, so it’s important to check that all eligibility criteria are met. For 2024/25, an employee must:

• Be unable to work for at least four consecutive calendar days (including non-working days).
• Earn at least £123 per week on average before tax (the lower earnings limit for 2024/25).
• Be classed as an employed earner on your PAYE payroll (this can include part-time, temporary, or zero-hours staff if they meet the earnings threshold).
• Provide evidence of illness (such as a fit note) if off for more than seven days in a row (including weekends and bank holidays).

There’s no minimum length of service required - new employees qualify as soon as they meet the criteria above. However, SSP does not apply to self-employed contractors, certain agency workers, or employees who have already received 28 weeks of SSP in the same period of incapacity for work. If in doubt, seek legal advice to confirm eligibility and avoid disputes.

How Long Must You Pay SSP For?

Eligible employees are entitled to up to 28 weeks of SSP in any linked period of incapacity for work. Two absences count as linked if they’re within eight weeks of each other. Once SSP entitlement ends (or employment ends), the employee may be eligible for Employment and Support Allowance (ESA). Keep records of the following to stay compliant:

• Dates of employee absence
• Amounts and dates of SSP payments
• Medical evidence or fit notes received

Accurate records protect your business during HMRC checks or if an employee challenges your decisions.

How To Remain Compliant With SSP Rules In 2024

Failing to comply with SSP law can lead to legal claims, financial penalties, and damage to your reputation. Here’s how to stay compliant:

• Pay SSP at the correct statutory rate: £116.75 per week from April 2024.
• Apply eligibility rules consistently and fairly.
• Keep accurate absence and payment records.
• Have a clear, written Sickness & Absence Policy in your staff handbook and employment contracts.
• Update your payroll systems each April to reflect the new SSP rate.

If your company offers enhanced sick pay, you can continue doing so - just make sure it meets or exceeds the statutory minimum.

Can You Recover SSP Costs As An Employer?

Employers cannot reclaim standard SSP payments from HMRC (the old rebate scheme was abolished in 2014). You must fund SSP directly from your business payroll, unless a temporary government relief scheme is introduced in future. This makes budgeting important, especially for small businesses. Clear absence management and consistent HR processes can help minimise unplanned costs.

Are There Any Proposed Changes To Statutory Sick Pay?

The Work and Pensions Committee has proposed further reforms to SSP. While none are yet law, potential changes include:

• Raising SSP to align more closely with Statutory Maternity Pay (SMP).
• Removing the lower earnings limit so all workers qualify, regardless of income.
• Increasing flexibility in qualifying days and waiting periods.

These reforms are not yet confirmed, but employers should monitor updates each tax year to stay compliant.

What Happens If You Don’t Comply?

Non-compliance with SSP obligations can result in:

• Employment Tribunal claims for unlawful deductions from wages.
• HMRC investigations and potential penalties.
• Damaged employee relations and higher turnover.

In serious cases, mishandling sick pay could even amount to constructive dismissal if it breaches the implied term of trust and confidence.

Top Tips For Employers Managing Sick Pay

• Review employment contracts to ensure they reflect current SSP rules.
• Update your employee handbook each April to match new rates.
• Communicate your sick pay policy clearly to staff.
• Subscribe to GOV.UK updates or ACAS alerts to stay current.
• Keep detailed records of all absences, payments, and fit notes.
• Factor SSP costs into your annual wage forecasts.

Other Employment Law Duties To Remember

SSP is just one part of your broader employer obligations. Stay compliant with related laws on:

• National Minimum Wage and National Living Wage
• Data protection and employee privacy (UK GDPR)
• Health and safety duties
• Written contracts of employment

Strong employment policies help you prevent disputes and demonstrate fair practice across your workforce.

Key Takeaways: Statutory Sick Pay 2024 For Employers

• The SSP rate is £116.75 per week from 6 April 2024.
• Employees must earn at least £123 per week and be off sick for at least four consecutive calendar days.
• SSP is payable for up to 28 weeks in a linked period of incapacity for work.
• Employers cannot reclaim SSP payments from HMRC (except under any temporary relief schemes).
• Review your policies and payroll annually in April to remain compliant.
• Stay alert to proposed reforms that may expand eligibility or increase rates.

If you’d like help understanding your SSP obligations, reviewing employment contracts, or updating your HR policies, contact our team at team@sprintlaw.co.uk or call 08081347754 for a free, no-obligation chat. We’re here to help your business stay compliant and protected from day one.