SSP Statutory Sick Pay
LEL Lower Earnings Limit
WDs Waiting Days
PIW Period of Incapacity for work
QDs Qualifying Days
NICs National Insurance Contributions
Lower Earnings Limit
This is the minimum level of earnings that employees need to qualify for benefits, it is also the level that employee’s average weekly earnings must reach in a specific period, for them to get SSP. For 2020-2021 the LEL is £120.00 weekly.
Period of Incapacity for work
This is a period of sickness lasting at least 4 or more days in a row. All days of sickness count towards the total number of days, even non-working days. If there are less than four consecutive days there is no PIW and no action is needed.
These are the only days you can pay SSP for and count as waiting days. They are usually the days of the week your employee normally works. Bank Holidays do not alter the normal pattern of QDs.
SSP is not payable for the first three QDs in a PIW, these are called waiting days. Where PIWs are linked and all three WDs have been served in the first PIW, there will be no waiting days in any later linked spells of sickness.
If an employee has PIW and then has another within 8 weeks or 56 days, the PIW’s are linked and treated as one, even if the illness is different. There is no need to count WDs on the second PIW.
Rate of SSP
The current rate of SSP is £96.35 per week, regardless of the employee’s usual earnings. You pay for 28 weeks in a PIW or series of linked PIWs. So the maximum you can pay is 28 times £96.35.
SSP is no longer government funded and has to be paid for by the employer.