Statutory Sick Pay: Proposed Changes
25th October 2024
The government’s Employment Rights Bill received it’s first reading in the House of Commons on October 10th. Part of the bill proposes sweeping reforms to the current rules regarding Statutory Sick Pay (SSP).
Under current rules, the first three days of SSP are known as the Period in Waiting (PIW) or waiting days. SSP therefore becomes payable on the 4th consecutive day of sickness. Only those employees who earn above the Lower Earnings Limit, currently set at £123.00 per week, qualify for SSP.
The proposed changes will see an end to waiting days. Meaning that SSP will become payable from the first full day of sickness. An added bonus of this would see SSP linked periods no longer forming part of the sickness tracking process. The changes will also see the removal of the pay amount qualification criteria so that all employees, no matter how much they earn, will be able to claim SSP.
For the 2024-25 tax year, SSP is paid at a weekly rate of £116.75. As with maternity pay calculations, workers who earn below the standard rate will be paid as a percentage of their average pay rather than the full amount. What this percentage will be has not been announced.
No time frame has been announced as to when these changes would apply. The expectations are that further amendments will be announced, such as a phased return to work for long term sick employees and the re-introduction of the right to reclaim Statutory Sick Pay, but we will keep you up to date as and when these changes are implemented.
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Disclaimer - All information in this post was correct at time of writing.
