Employee Statutory Sick Pay

Statutory Sickness Payment

Where a HMRC small employer PAYE scheme is being operated Statutory Sickness Payment is received by the nanny on the 4th consecutive working day of sick leave as per government legislation.

During the first three days of sick leave the employer decides if they wish to pay the nanny her salary for none, one, two or three days prior to SSP starting.

Likewise once SSP starts the employer decides if they wish to “top up” the salary of the nanny to any level they wish over and above the current SSP rate.

Normally the employer and nanny also agree in the employment contract a total amount of sick days per year that the employer will pay the sick nanny her salary prior to SSP starting on the 4th consecutive working day and a generous average is 6 days in total during one year of employment.

The employer is under no obligation to make salary payments or salary “top ups” during sick leave and may opt to include in the employment contract that. “ The employer will not pay the nanny from the first day of sickness and the nanny will receive SSP only”.

Nannywage Ltd handle all of this on your behalf. All you need to do as a subscriber to our service is complete a SSP form on the FIRST day of sickness. We then calculate SSP on your behalf and include SSP payments in the next wageslip. You then pay the net as shown on the wageslip in the normal way. Employers could recover SSP paid where the total exceeded 13% of Class 1 National Insurance Contributions, known as the Percentage Threshold Scheme (PTS). From 6 April 2014 PTS has been abolished, this means SSP paid by the employer to the employee, which is a statutory requirement will be an unrecoverable cost for all employers. As the employer you may wish to take this into account when awarding paid salary days for the first three days when an employee is sick and the total to be paid per year.