Government provides clarity on the future of Statutory Sick Pay

Statutory Sick Pay (SSP) is the amount payable by employers when an employee is absent from work due to sickness. It is currently set at a flat rate of £118.75 (from 6^th April 2025). There are certain eligibility requirements, including the fact that SSP is not currently payable during the first three days of absence, known as ‘waiting days’ and that those earning below the Lower Earnings Limit (LEL) – £125 per week – were not eligible.

The Employment Rights Bill proposes to make changes to SSP rules. In particular:

• The concept of ‘waiting days’ will disappear. Eligible employees will receive SSP from their first day of absence.
• Those earning below the LEL will now be eligible to receive SSP.

Acknowledging that the rate of SSP would need to be adjusted for those earning less than the LEL, the Government launched a consultation at the back end of last year focused on establishing what percentage of earnings should be used to calculate SSP for these workers. In its response, the Government has concluded that the appropriate percentage rate for SSP is 80% of the SSP flat rate, where 80% of an employee’s normal weekly earnings is less than the flat rate. To give a real-world example, if an employee earns £100 per week, then they earn below the LEL (and below the current weekly flat rate for SSP). Under the new rules they would be entitled to receive 80% of £100 (or £80) per week as an SSP payment.