Statutory Sick Pay, Statutory Maternity or Paternity Pay and Redundancy Pay

These information sheets have been provided as a guide only and should not be used as substitutes for specialist advice. We try to keep them updated, however, this cannot always be guaranteed.

For current SSP and SMP rates click here

Statutory Sick Pay (SSP)

Employers are required by law to pay SSP to their employees during sickness provided:

  • The employee's average weekly earnings are above the Lower Earnings Limit (LEL) for national insurance contributions.
  • The employee was over 16 and under 65 on the first day of sickness.
  • The employee was sick for at least four days. SSP is not paid for the first three days of sickness. (There are rules for linking periods of sickness together within an 8 week period. Speak to the Inland Revenue or Compass Disability Services if you think this may apply).

All employers are eligible to reclaim SSP if it is more than 13% of the total employers and employees National Insurance Contributions for the month for all employees.

Statutory Maternity Pay (SMP)

Employers are required by law to pay SMP to a pregnant employee if the qualifying conditions are met, even if she does not intend to return to work for you after the birth of the baby. You are likely to have the SMP totally reimbursed, together with a 4.5% 'admin fee' under a scheme called ‘small employer' relief. You gain relief by deducting SMP paid from your monthly/quarterly payment of National Insurance Contributions. You may be able to get a payment from HM Revenue and Customs instead, if your monthly payment to them is not enough to recover the SMP paid.

The qualifying conditions for SMP are that an employee must:

  • Have continuously worked for you for at least 26 weeks by the end of the 15th week before the baby is due.
  • Still be pregnant at the 11th week before the baby is due, or have had the baby by then.
  • Have average weekly earnings of not less than the Lower Earnings Limit (LEL) in a defined period. They do not need to have paid any NICs to qualify for SMP.
  • Have given you medical evidence of the date the baby is due (form MatB1) no earlier than 14th week before the baby is due.
  • Tell you when she is planning to stop work.
  • Have stopped working for you. You cannot pay SMP for any week in which an employee has done work for you. If your employee works for you in any week or part week during the 18 weeks, she will lose SMP for that week.

SMP is payable at 90% of average weekly earnings for the first 6 weeks and the lower of 90% average weekly earnings or the current SMP rate for up to 33 further weeks.

Statutory Paternity Pay

SPP is due for a maximum of 2 weeks to employees who have average weekly earnings of not less than the Lower Earnings Limit in a defined period. Again the weekly rate is the lower of 90% of average weekly earnings or the current SPP rate.

Statutory Adoption Pay

Employees who are adopting a child are covered by similar rules and are entitled to a maximum of 39 weeks pay.

Redundancy Pay

If an employee has been with you for two years or more you will have to pay redundancy pay. The amount depends upon the employee's age and varies between half and one and a half week's pay for each year worked. Either notice or pay in lieu of notice may also need to be given. For further assistance with calculating and funding redundancy pay speak to your Independent Living Advisor

More information on any of the above can be found at