Statutory sick pay (SSP) refers to a type of payment employers are required to pay employees who are unable to work due to health reasons like injury or illness. It’s a way to ensure these employees are still receiving income even when they are unable to work.
Because this is a mandatory benefit, employers must ensure that their SSP is functioning correctly, or else risk legal action.
What qualifies as SSP?
Employees need to meet certain qualifications to be eligible for SSP, including:
- Being absent from work for a certain length of time – often around 4 days
- Providing evidence of illness or injury, like a doctor’s note
- Earning above a certain threshold in the period leading up to their illness
How much do employees get paid for statutory sick days?
The amount that employees get paid for statutory sick days tends to vary. There are different types of SSPs, depending on country, jurisdiction, and context. These will dictate how the SSP will be calculated and how much the employee will be paid during their sick leave. Some examples include the following:
- Enhanced SSP: additional sick days that the employer needs to provide in addition to the minimum number of days that are necessary.
- Flat rate SSP: a set amount of pay that’s given to employees on sick leave, regardless of their normal pay rate.
- Percentage SSP: a percentage of an employee’s regular pay rate that’s paid while on sick leave.
Managing SSP for a global workforce
For companies managing a global workforce, statutory sick pay is complicated. Every country has its own rules and regulations concerning SSP. And failing to comply with these and miscalculating your global payroll can lead to fees and penalties.
With the global payroll solution though companies can stay ahead of these potential obstacles by keeping track of regulations on a global scale and automating the payroll and payments process.