Benefits

What is ssp benefits?

What is ssp benefits?

When it comes to employee benefits, there are a variety of options available to employers. One of these options is Statutory Sick Pay (SSP). This is a benefit that is provided to employees who are unable to work due to illness or injury. In this article, we will explore what SSP benefits are, who is eligible for them, and how they work.

What is SSP?

SSP stands for Statutory Sick Pay. It is a benefit that is provided by the government to employees who are unable to work due to illness or injury. This benefit is paid by the employer and is designed to help employees who are unable to work due to illness or injury. It is a legal requirement for employers to provide SSP to their employees.

SSP is a flat rate payment that is paid for up to 28 weeks. The current rate of SSP is £95.85 per week. This amount is subject to change each year, so it is important to check the current rate when calculating SSP for your employees.

Who is Eligible for SSP?

In order to be eligible for SSP, an employee must meet certain criteria. Firstly, they must be an employee and not self-employed. They must also have been off work due to illness or injury for at least four days in a row (including weekends and bank holidays). This is known as the ‘qualifying period’.

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Additionally, the employee must earn an average of at least £120 per week. This is known as the ‘lower earnings limit’. If an employee earns less than this amount, they will not be eligible for SSP. It is important to note that this amount may be different for employees who work part-time or on a casual basis.

Furthermore, the employee must have a contract of employment with their employer. This means that they must have a written or verbal agreement to work for their employer. If an employee is not sure whether they have a contract of employment, they should speak to their employer for clarification.

Finally, the employee must be unable to work due to illness or injury. This means that they must be too ill to work, or they must be self-isolating due to COVID-19. If an employee is able to work from home, they will not be eligible for SSP.

How Does SSP Work?

SSP is paid by the employer and is subject to the same tax and National Insurance contributions as regular pay. This means that the employee will receive their SSP payment in the same way as their regular pay, and it will be subject to the same deductions.

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SSP is paid for up to 28 weeks. This is known as the ‘period of incapacity for work’. The first three days of this period are known as ‘waiting days’. This means that the employee will not receive SSP for these days. However, if the employee is off work for more than seven days, including weekends and bank holidays, they will receive SSP from the fourth day of their absence.

It is important to note that an employee can receive SSP for a maximum of 28 weeks in any three-year period. This means that if an employee has already received SSP for 28 weeks in the past three years, they will not be eligible for SSP again until the three-year period has passed.

SSP and COVID-19

Since the outbreak of COVID-19, there have been some changes to the rules surrounding SSP. In order to support employees who are unable to work due to COVID-19, the government has introduced the Coronavirus Job Retention Scheme (CJRS). This scheme allows employers to furlough their employees and claim back 80% of their wages from the government, up to a maximum of £2,500 per month.

If an employee is furloughed, they will not be eligible for SSP. However, if an employee is unable to work due to COVID-19 and is not furloughed, they will be eligible for SSP. This includes employees who are self-isolating due to COVID-19, as well as those who are shielding due to being clinically extremely vulnerable.

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It is important for employers to keep up to date with the latest guidance from the government regarding SSP and COVID-19. This will ensure that they are providing their employees with the correct support and benefits during this challenging time.

Examples of SSP in Action

Let’s take a look at some examples of how SSP works in practice:

  • Example 1: Sarah has been working for her employer for two years. She has been off work for two weeks due to a serious illness. As she has been off work for more than four days, she is eligible for SSP. Her employer pays her £95.85 per week for the first 28 weeks of her absence.
  • Example 2: John has been working for his employer for six months. He has been off work for three days due to a minor illness. As he has not been off work for more than four days, he is not eligible for SSP. His employer does not pay him for the three days he was absent.
  • Example 3: Maria has been working for her employer for three years. She has been off work for 28 weeks due to a serious injury. As she has already received SSP for 28 weeks in the past three years, she is not eligible for SSP again until the three-year period has passed.

The Benefits of SSP for Employers

Providing SSP to employees can have several benefits for employers:

  • Legal Requirement: As mentioned earlier, it is a legal requirement for employers to provide SSP to their employees. Failure to do so can result in penalties and legal action.
  • Employee Retention: By providing SSP, employers can show their employees that they care about their well-being and are willing to support them during difficult times. This can help to improve employee morale and retention.
  • Reduced Absenteeism: By providing SSP, employers can help to reduce absenteeism in the workplace. This is because employees are more likely to take time off when they are unwell if they know they will receive SSP.
  • Improved Productivity: When employees are unwell, they are less likely to be productive at work. By providing SSP, employers can ensure that their employees take the time they need to recover and return to work at full capacity.

Conclusion:

In conclusion, SSP is a benefit that is provided by the government to employees who are unable to work due to illness or injury. It is a legal requirement for employers to provide SSP to their employees, and failure to do so can result in penalties and legal action. In order to be eligible for SSP, an employee must meet certain criteria, including being an employee, earning an average of at least £120 per week, and being unable to work due to illness or injury.

SSP is paid for up to 28 weeks and is subject to the same tax and National Insurance contributions as regular pay. It is important for employers to keep up to date with the latest guidance from the government regarding SSP and COVID-19, as there have been some changes to the rules surrounding SSP during the pandemic.

Providing SSP to employees can have several benefits for employers, including legal compliance, improved employee retention, reduced absenteeism, and improved productivity. By understanding SSP and how it works, employers can ensure that they are providing their employees with the support and benefits they need during difficult times.

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