Guide To

Statutory Sick Pay (SSP)

Statutory Sick Pay (SSP) in the UK: How It Works 

In the UK, Statutory Sick Pay (SSP) provides financial assistance to employees who are unable to work due to illness. SSP is a legal minimum set by the government, and employers are required to pay it to eligible employees. 

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Key Points of Statutory Sick Pay: 

Amount: SSP is currently set at £118.75 per week. 

Eligibility:

• You must be classified as an employee (contract workers and agency staff may also qualify). 
• You must have been off work sick for at least 4 consecutive days (including non-working days). 
• You must earn at least £123 per week before tax. 
• You need to notify your employer about your illness according to their rules (usually within 7 days). 

Duration: SSP is paid for up to 28 weeks.

Start Date: SSP starts on the fourth day of illness (the first three days are usually unpaid, known as “waiting days”). Some employers may offer “company sick pay” for the first three days, but this is not required by law. 

Payment: SSP is paid in the same way as your normal wages (weekly, monthly, etc.), and it is subject to tax and National Insurance deductions. 

Other Considerations: 

• If you are still ill after 28 weeks or if your SSP ends. 

• Some employers offer company sick pay, which might top up SSP to a higher amount or provide pay during the first three waiting days. 

Exclusions: 

• Self-employed workers are not eligible for SSP. 
• Sole traders and contractors who don’t qualify as employees will need to consider alternatives like Private Sick Pay (Daddy Insurance Private Sick Pay Income Protection). 

Statutory Sick Pay provides a basic level of income replacement, but for many, especially those with higher financial commitments, it may not be enough to cover living expenses during extended illnesses. This is where additional protection, such as Private Sick Pay (Daddy Insurance Private Sick Pay Income Protection), can help bridge the gap. 

Why Private Sick Pay Is So Important ?

While Statutory Sick Pay (SSP) provides some financial relief, it is often insufficient to cover the full range of living expenses, particularly for those with mortgages, rent, bills, and family commitments. At £118.75 per week, SSP offers only a minimal amount of income, which for many workers, especially those with higher financial obligations, can lead to significant financial strain during extended periods of illness. 

Private Sick Pay (Daddy Insurance Private Sick Pay Income Protection) fills this crucial gap by offering a more comprehensive safety net. Here’s why it’s so important: 

• Income Replacement: Private sick pay can cover up to 70% of your regular income, ensuring you maintain financial stability and can meet your essential expenses, such as rent, mortgage payments, utilities, and daily living costs, even when you’re unable to work. 
• Extended Coverage: Unlike SSP, which is capped at 28 weeks, Private Sick Pay (Daddy Insurance Private Sick Pay Income Protection) can offer coverage for much longer periods, up to and until you reach retirement age 65 or 70, depending on your policy. 
• Peace of Mind: Knowing that your income is protected allows you to focus on your recovery without the added stress of financial worries. It provides reassurance that both your short-term and long-term financial obligations will be met, even during prolonged illness or injury. 
• Flexibility for Self-Employed: For self-employed individuals and contractors, who do not qualify for SSP, private sick pay becomes even more critical. It ensures that even without employer benefits, you can still receive an income during times of illness.  

In conclusion, Private Sick Pay (Daddy Insurance Private Sick Pay Income Protection) is essential because it provides a more secure, reliable source of income during periods of illness or injury. It offers better financial protection than SSP, allowing you to focus on what matters most—your recovery—while maintaining your standard of living and avoiding financial hardship.