SSP Rate 2024/25 | Latest Statutory Sick Pay Rates and Updates

Statutory Sick Pay (SSP) is a government-mandated financial support system that ensures employees receive compensation when they are unable to work due to illness. It provides a safety net for workers, allowing them to take time off without losing all of their income.

Every year, the UK government revises the SSP rate to reflect inflation, cost-of-living adjustments, and economic changes. The 2024/25 update brings a new weekly payment rate, modified employer obligations, and updated eligibility criteria.

Understanding these updates is essential for both employees and employers, as failure to comply with SSP rules can lead to disputes, penalties, or financial difficulties. This article covers everything you need to know about the SSP rate for 2024/25, including payment amounts, eligibility, employer responsibilities, and the claim process.

What is the SSP Rate for 2024/25 in the UK?

The Statutory Sick Pay (SSP) rate for 2024/25 has been updated by the UK government, reflecting economic trends and inflation. Employees who qualify for SSP will receive £116.75 per week (proposed; always check official government sources for confirmation).

Comparison with Previous Years

The increase in SSP ensures that employees receive better financial support during illness, but it remains lower than full-time earnings, making employer-provided sick pay schemes important for additional coverage.

Who is Eligible for Statutory Sick Pay (SSP) in 2024/25?

Not all workers qualify for SSP, as certain conditions must be met before an employee can claim this benefit. The eligibility criteria for SSP in 2024/25 include:

• Employment Status: The individual must be an official employee or worker under a contract; self-employed individuals do not qualify.
• Earnings Threshold: The employee must earn at least £123 per week, as those earning below this amount are ineligible for SSP.
• Sickness Duration: The employee must be off sick for at least four consecutive days, including weekends and non-working days.
• Exclusions: Employees receiving Statutory Maternity Pay (SMP), or other conflicting benefits, cannot claim SSP at the same time.
• Zero-Hours Contracts: Individuals on zero-hours contracts may be eligible if they meet the earnings threshold and work history requirements.

Understanding these conditions is crucial for workers who depend on SSP as a financial safety net.

How Can Employers Process SSP Payments in 2024/25?

Employers are legally responsible for ensuring that SSP payments are processed accurately and fairly. To comply with UK regulations, employers should follow these steps:

1. Check Employee Eligibility: Employers must confirm that the worker meets all the necessary SSP conditions before initiating payments.
2. Calculate the SSP Amount: Employers should use the weekly SSP rate of £116.75 and divide it by the number of qualifying workdays.
3. Process Payments Through Payroll: SSP payments must be included in the employee’s usual payroll cycle and subjected to income tax and National Insurance deductions.
4. Keep Detailed Records: Employers should maintain records of SSP payments, including sickness dates, payment amounts, and supporting medical documentation, for at least three years.
5. Reclaiming SSP Costs: Small businesses may be able to reclaim SSP payments from HMRC under certain conditions, such as pandemic-related financial support schemes.

Failure to process SSP correctly can lead to legal disputes, penalties, and reputational damage for employers.

How Long Can Employees Receive SSP in 2024/25?

The maximum SSP entitlement for a single period of sickness is 28 weeks. This means employees can receive payments for up to six and a half months if their illness continues.

• Extended Absences: If an employee is sick for more than 28 weeks, they must apply for Employment and Support Allowance (ESA) or other government benefits.
• Recurring Illnesses: If an employee returns to work but falls ill again within eight weeks, the SSP entitlement resumes without restarting the qualification period.
• Medical Evidence: If an employee is absent for more than seven consecutive days, they must provide a fit note (formerly sick note) from a GP or medical professional.

This ensures that employees are supported during long-term illnesses while preventing abuse of the SSP system.

What Are the Exemptions and Limitations for SSP in 2024/25?

Some employees may not qualify for SSP due to specific legal restrictions. The main exemptions include:

• Self-Employed Workers: SSP only applies to employees under a contract of employment; self-employed individuals must apply for ESA or Universal Credit instead.
• Low Earners: Employees earning below £123 per week do not qualify for SSP and may need to explore alternative government support.
• Long-Term Absences: If an employee has already received 28 weeks of SSP, they cannot claim any further payments and must seek other benefits.
• Multiple Jobs: Employees working multiple jobs may only claim SSP from the employer where they meet the minimum earnings requirement.

Understanding these exemptions is essential to avoid misunderstandings about SSP eligibility and limitations.

How Can Employees Claim SSP in 2024/25?

To claim SSP, employees should follow this step-by-step process:

1. Report Sickness Promptly: Employees must notify their employer within the required timeframe, usually set by the company.
2. Provide Medical Documentation: If the illness lasts more than seven days, a fit note from a doctor must be submitted.
3. Verify Payment Amounts: Employees should check their pay slips to ensure that SSP is correctly processed and matches the official rate.
4. Appeal if Necessary: If an employer refuses to pay SSP, employees can escalate the issue by contacting HMRC or an employment tribunal.

This process ensures a smooth and timely SSP payment experience for both employees and employers.

How Does SSP Work for Part-Time and Zero-Hours Contract Workers in 2024/25?

Part-time employees and zero-hours contract workers often face uncertainty about Statutory Sick Pay (SSP) eligibility and payments. The good news is that these workers can still qualify for SSP if they meet the required conditions.

• Part-Time Workers: Part-time employees qualify for SSP as long as they earn at least £123 per week (before tax). The number of hours worked does not affect eligibility.
• Zero-Hours Contract Workers: Workers on zero-hours contracts may be eligible if they meet the earnings threshold. If they work variable hours, eligibility is calculated based on their average earnings over the last eight weeks.
• Irregular Work Patterns: Employees who work on a shift or freelance basis may need to show a work history with consistent earnings to qualify for SSP.
• Multiple Employers: If an employee works for more than one employer, they may be entitled to SSP from each employer separately if they meet the eligibility requirements with both.

Understanding these rules ensures that part-time and flexible workers do not miss out on financial support when sick.

What Are the Common Mistakes Employers Make When Handling SSP?

Many employers unknowingly make errors when processing SSP, leading to legal risks, employee disputes, or HMRC penalties. Below are some common mistakes and how to avoid them:

• Failing to Inform Employees About SSP Rights: Some employers do not clearly communicate SSP policies, leaving employees unaware of their entitlements.
• Incorrectly Calculating SSP Payments: Mistakes in weekly SSP calculations can lead to underpayments or overpayments. Employers should always use the latest SSP rates to ensure accuracy.
• Not Recognising SSP Eligibility for Zero-Hours Workers: Some employers wrongly assume that casual workers or those on zero-hours contracts do not qualify for SSP, even when they meet the earnings criteria.
• Refusing SSP Without a Valid Reason: Employers must provide a formal explanation if they deny SSP to an employee, or risk disputes and complaints to HMRC or an employment tribunal.
• Failing to Keep Proper Records: Employers are legally required to keep SSP records for at least three years. Missing records can lead to compliance issues during audits.

Employers must stay informed about SSP rules and follow government guidelines to avoid these mistakes and maintain good employee relations.

What Are the Future Predictions for SSP Beyond 2024/25?

With growing discussions on worker rights, cost of living, and social welfare, there is speculation about future changes to SSP policies in the UK. Some of the potential changes include:

• Increase in SSP Payments: Many experts believe that SSP rates should be raised further to provide better financial security for employees, especially in light of inflation.
• Extension of SSP to More Workers: There have been calls for expanding SSP eligibility to include lower earners and self-employed individuals, reducing the number of workers left without sick pay.
• Improved Employer Compensation: Business groups have requested government support for small businesses, allowing them to reclaim SSP costs to ease financial strain.
• Hybrid and Remote Work Impact: With more employees working remotely, new SSP rules may be introduced to address sickness absences for home-based workers.

Although no official changes have been announced, the UK government continues to review employment policies, meaning SSP regulations could evolve in the coming years.

Conclusion

The SSP rate for 2024/25 has been increased to £116.75 per week, providing better financial support for employees on sick leave. However, eligibility criteria, claim processes, and employer responsibilities remain crucial aspects of the SSP system.

Both employees and employers must stay informed about recent changes to avoid disputes and ensure compliance with UK labour laws. Employees should always report sickness promptly, while employers must ensure accurate SSP calculations and timely payments.

Staying updated with government announcements and seeking expert advice when necessary can help both businesses and workers navigate SSP regulations effectively.

FAQs about SSP rate for 2024/25

What happens if an employee’s sickness lasts beyond the SSP period?

Employees who remain sick after 28 weeks must apply for Employment and Support Allowance (ESA) or Universal Credit.

Can self-employed individuals claim Statutory Sick Pay?

No, self-employed workers are not eligible for SSP and should explore alternative financial support options.

Does SSP affect other workplace benefits or tax credits?

Yes, receiving SSP can impact benefits such as Universal Credit and tax credits, depending on total earnings.

What should employees do if their SSP is not paid correctly?

Employees should first contact their employer, and if unresolved, seek help from HMRC or an employment tribunal.

Can an employee work while receiving SSP?

No, employees cannot work for their employer while receiving SSP, as it contradicts the sick leave policy.