Statutory Sick Pay (SSP)

Who is Entitled to SSP?

PAYE candidates are eligible for SSP if they meet the following criteria:

  • They have been paid by Rayne Consultancy Limited for at least 8 consecutive weeks prior to their absence.
  • They earn £118.00 or more per week (the Lower Earnings Limit or LEL).

Length of Absence and Requirements

Absences of 7 Calendar Days or Less

  • These can be noted on the timesheet as “sick.”
  • Candidates can also notify their sickness via email or use the client’s self-certification form.

Absences of More Than 7 Calendar Days

  • Payment requires an original Doctor’s Note (copies are not accepted).
  • If the candidate returns to work before the expiry date on the Doctor’s Note, the note becomes invalid as of the return date.
  • Before processing sickness in payroll, ensure the timesheet reflects the absence and confirm no work has been completed. For full-week absences, add a note specifying the sick period, your initials, and force-validate the timesheet to avoid errors.

How Much is SSP?

  • SSP is currently £94.25 per week (subject to review each April).
  • To calculate the daily SSP rate, divide £94.25 by the number of days the candidate is contracted to work. For example, a 5-day workweek would result in £18.85 per day.

When is SSP Payable?

  • SSP becomes payable after 4 consecutive working days of absence.
  • The first 3 days are considered “Waiting Days” and are unpaid.
  • For a 4-day absence, the candidate would receive £18.85 (one day of SSP).

Linked Sickness Periods
If a candidate is absent for 4 or more consecutive working days, receives SSP, returns to work, and falls sick again within 8 weeks, the absences are linked. For linked absences, SSP begins on the first day of the second absence without additional Waiting Days, provided the second absence is 4 days or more.

When SSP Cannot Be Paid

If a candidate is not entitled to SSP due to insufficient work history or exhausting their entitlement, an SSP1 form must be issued. This form explains the reason for non-payment and allows the candidate to claim benefits directly from the benefits agency.

Statutory Maternity Pay (SMP)

Eligibility for SMP

Eligible employees may receive SMP for up to 39 weeks as follows:

  • First 6 weeks: 90% of their average weekly earnings (AWE) before tax.
  • Remaining 33 weeks: £148.68 or 90% of their AWE, whichever is lower.

Tax and National Insurance will be deducted from these payments.

Eligibility Requirements:

  • The employee must be on our payroll in the qualifying week (the 15th week before the expected week of childbirth).
  • They must provide appropriate notice and proof of pregnancy.
  • They must have worked continuously for at least 26 weeks up to any day in the qualifying week.
  • Their gross earnings must be at least £118 per week during an 8-week “relevant period.”

Proof of Pregnancy

Before paying SMP, proof of pregnancy is required, such as:

  • A doctor’s letter.
  • A maternity certificate (MATB1), typically issued 20 weeks before the due date.

Proof must be provided within 21 days of the SMP start date. While we may accept late submissions, we cannot pay SMP if proof is not received within 13 weeks of the SMP start date.

Refusing SMP

If an employee does not qualify for SMP, they may be eligible for Maternity Allowance instead.

To refuse SMP:

  • Issue an SMP1 form within 7 days of the decision.
  • Ensure the employee receives this form within 28 days of their request for SMP or the birth, whichever is earlier.

For further clarification, candidates can reach out to their Rayne Consultancy Consultant.