Key Highlights
- Most employers cannot reclaim SSP as the Coronavirus SSP Rebate Scheme ended in March 2022.
- SSP is paid to eligible employees for illness but cannot exceed 28 weeks.
- To qualify for SSP, employees must meet specific criteria, including earnings and sick leave duration.
- Employers must maintain accurate payroll and sickness records for compliance and audits.
- Small businesses should carefully manage SSP costs to avoid financial strain.
- Accurate record-keeping ensures compliance with HMRC rules and helps businesses stay on top of their SSP obligations.
Understanding Statutory Sick Pay (SSP) can be confusing for employers. This is particularly true when managing costs and complying with HMRC rules. Many small employers ask: “Can an employer claim back SSP from HMRC?” Previously, under the Coronavirus Statutory Sick Pay Rebate Scheme, businesses with fewer than 250 employees could reclaim up to two weeks’ SSP per eligible employee for Covid‑related absences.
Navigating SSP regulations can be challenging. Rules depend on employee eligibility, the number of employees, and the type of sickness absence. Misunderstanding these details can lead to financial strain, payroll errors, or missed opportunities to reclaim eligible reimbursements, leaving employers uncertain about their responsibilities and entitlements.
This blog aims to clarify the SSP reclaim process, explain when and how employers can claim back SSP from HMRC, and provide practical guidance on compliance. By the end, you’ll have a clear understanding of SSP rules, helping you manage employee sick pay efficiently and avoid unnecessary costs.
What Is Statutory Sick Pay (SSP) and Who Qualifies for It?
Statutory Sick Pay (SSP) is the basic level of sick pay you must provide to eligible employees when they’re unable to work due to illness. Think of it as a financial safety net, ensuring your team still receives some income while they recover.
To qualify for SSP, an employee must:
- Be legally classed as an employee under their employment contract.
- Earn on average at least £123 per week.
- Have been ill for four or more consecutive days, including weekends and non-working days.
According to research, around 1.15 million workers (≈3.5% of the workforce) earn below the eligibility threshold. These employees are ineligible for SSP.
Employees who are off work for more than seven days typically need a doctor’s fit note to confirm ongoing illness. TUC data indicates that 6.4 million employees rely solely on SSP, while a CIPD survey reports that 62% of employers believe the SSP rate is too low, underlining the importance of accurate payroll management and compliance.
What Are the Current Rules for Statutory Sick Pay (SSP) in 2025/26?
As of April 2025, the weekly rate of Statutory Sick Pay (SSP) is £118.75, and employees can receive it for up to 28 weeks during a period of illness.
To qualify for SSP, an employee must:
- Be classified as an employee and have worked under their contract.
- Be sick for at least four consecutive calendar days (including non-working days).
- Earn an average of at least £125 per week (the Lower Earnings Limit for 2025/26).
Employers are responsible for paying SSP through payroll, keeping accurate records for at least three years, and ensuring compliance with SSP regulations and reporting requirements.
Can Employer Claim Back SSP from HMRC?
Under the Coronavirus Statutory Sick Pay Rebate Scheme, businesses with fewer than 250 employees could reclaim up to two weeks’ SSP per eligible employee for Covid‑related absences.
The scheme closed on 17 March 2022, with the final date to submit or amend claims on 24 March 2022. Since there is no active reclaim scheme, employers must now maintain accurate payroll and sickness records, including dates of absence, SSP amounts paid, and employee details, which is essential for audits or any future regulatory changes.
For small business employers, SSP can still have a significant financial impact. Multiple absences can strain cash flow, making careful tracking and payroll management critical. By keeping detailed records and monitoring payroll costs, small businesses can ensure compliance while minimizing the financial burden of statutory sick pay.
How to Claim SSP as an Employer?
Most employers today cannot claim back SSP paid to an employee, as the general SSP reclaim scheme has been phased out. However, understanding the process is still useful for historical claims, audits, or if exceptional schemes are introduced in the future. Knowing how to claim SSP as an employer also helps ensure accurate payroll management and compliance with HMRC rules.
Here’s a simple five-step guide, along with key requirements and considerations:
1. Requirements for Making an SSP Claim
Eligibility was generally limited to small businesses with fewer than 250 staff who paid SSP for COVID-related absences and were registered for PAYE. Only qualifying absences could be claimed. A DWP survey found that 14% of SMEs reported making an SSP Rebate Scheme claim, showing uptake among eligible employers.
For businesses managing payroll errors and corrections, it’s important to ensure accurate data when making claims. If you’ve made payroll errors during your SSP claim process, you may find useful guidance on correcting payroll errors in basic PAYE tools to prevent mistakes and maintain compliance with HMRC rules.
2. Process for Claiming SSP Through Payroll
To navigate the SSP claim process smoothly, employers need to understand each stage clearly. Here are the key steps employers should follow to claim SSP through payroll, ensuring all payments are documented and any historical claims are properly submitted.
- Check Eligibility: Employers cannot currently reclaim SSP, as past schemes like the Coronavirus SSP Rebate have ended. Keeping accurate payroll and sickness records ensures compliance with HMRC rules and supports audits or future regulatory changes.
- Gather Payroll Information: Collect records of SSP payments, employee details, sickness dates, and PAYE references.
- Provide Evidence: Ensure all documentation shows that absences met the scheme criteria.
- Submit the Claim: Complete the online claim through HMRC, including the total SSP you wish to reclaim.
- Track the Process: Monitor the claim for approval and respond promptly if HMRC requests additional information.
3. Documentation Needed for SSP Claims
Accurate documentation is crucial for supporting any SSP claim and ensuring compliance with HMRC rules. The following table summarises the essential records and evidence employers need to maintain for each employee to make the process straightforward and auditable.
| Document / Record | Purpose | Notes |
|---|---|---|
| Employee Details | Verify SSP eligibility | Name, NI number, and employment start date |
| Sickness Dates | Track qualifying period | Include day 1 to day 28 (or until return to work) |
| SSP Amounts Paid | Track payments made | Weekly SSP amount and total paid |
| Doctor’s Fit Notes | Support extended absences | Required if sickness exceeds 7 days |
| PAYE References | Link payroll to HMRC | Ensure accuracy for auditing |
Having proper documentation ensures that the SSP claim process remains transparent and compliant. Additionally, maintaining these records will help during HMRC audits, especially when verifying self-assessment. If you’re seeking guidance on how to ensure that your payroll processes meet HMRC’s auditing standards, check out HMRC Audit Self-Assessment Reasons for more detailed information.
4. Timeline for Processing SSP Claims
Claims were usually processed within a few weeks, though delays could occur if HMRC needed additional information.
Even though most employers do not currently claim back statutory sick pay, following these steps ensures payroll records are accurate and the business remains fully compliant.
For businesses seeking support with payroll accuracy and compliance, professional payroll services can streamline the process, ensuring everything is handled efficiently and in line with current regulations. If you’re unsure when to register your business with HMRC or need help navigating your responsibilities, registering on time is crucial for smooth and compliant payroll processing.
How Long Can You Claim SSP from Your Employer?
Knowing the length of SSP entitlement is essential for managing sickness absence. It also helps ensure payroll accuracy. Statutory Sick Pay (SSP) follows clear rules set by the government, and knowing these limits helps employers stay compliant while supporting employees fairly.
1. Maximum SSP Claim Period
The standard SSP limit is 28 weeks per illness period. This represents the maximum financial commitment under statutory rules, so employers should plan payroll accordingly. Ensuring employees receive SSP correctly in the first place prevents disputes and keeps your business compliant.
2. SSP Payment Duration Rules
SSP begins from the fourth qualifying day of sickness. Maintaining detailed payroll and SSP records helps safeguard your business from compliance issues and simplifies audit processes. SSP continues until the employee returns to work or reaches the statutory maximum.
3. When SSP Payments Come to an End
SSP payments automatically stop once the 28-week limit is reached, or sooner if the employee returns to work. After this point, employers cannot pay more SSP, and employees will need to explore alternative financial support options.
4. Support Options After SSP Ends
Once SSP ends, employees may be eligible for other forms of support, such as:
- Employment and Support Allowance (ESA)
- Universal Credit
- Occupational/company sick pay (if offered within the employment contract)
Employers should provide the employee with an SSP1 form, which allows them to apply for state benefits after their SSP entitlement ends.
Why Employers Must Manage Payroll Through Direct Payroll Services?
Understanding SSP rules is essential for compliance and smooth payroll operations. Paying the incorrect SSP rate or mishandling an eligible claim can result in HMRC penalties, legal disputes, and unnecessary stress for employers. SSP costs are now fully borne by employers. Careful budgeting and thorough record-keeping of sick pay, employee details, and documentation are essential for compliance and financial planning.
If managing SSP feels complex, Direct Payroll Services offers a reliable way to stay compliant. Our specialists ensure accurate calculations, correct PAYE processing, and full adherence to SSP regulations. This reduces administrative pressure, supports HR staff, and helps employers meet legal responsibilities confidently and efficiently.
Contact us today to discuss how we can simplify your payroll, ensure SSP compliance, and protect your business from potential legal issues.
Conclusion
Understanding Statutory Sick Pay (SSP) is crucial for managing absences, payroll, and compliance with UK regulations. Accurate records of sick pay, fit notes, and employee details reduce legal risks and ensure smooth payroll operations.
Employers should review SSP eligibility, payment durations, and support options regularly to plan finances and assist employees effectively. Reliable payroll systems or professional services streamline processes and maintain compliance.
Stay updated with HMRC guidance, audit payroll records, train HR staff, and implement best practices to protect your business and uphold statutory obligations.
Frequently Asked Questions
Do employers claim SSP back from the government?
Most employers ask, “Do employers claim back SSP?” The answer is no. As the previous schemes, including the Coronavirus SSP Rebate, have ended, employers are now responsible for covering all SSP costs without reimbursement.
How does business size affect SSP claims or responsibilities?
All employers must pay SSP regardless of size. Business size mattered for past schemes like the COVID-19 rebate for employers with fewer than 250 staff. Since reclaiming isn’t available now, size makes no difference. National insurance contributions or the minimum amount employers contribute doesn’t change this responsibility.
Have there been any recent changes or updates to SSP reclaim rules for employers?
Yes, the major update was the closure of the Coronavirus SSP Rebate Scheme in March 2022. No current schemes allow SSP reclaiming, so employers must cover all SSP costs unless new government legislation is introduced. For employers in essential public services, staying updated on these changes is crucial.
Can an employer claim back SSP paid to an employee?
No. Employers cannot reclaim SSP paid to employees under current legislation. The previous reclaim schemes, such as the COVID-19 SSP rebate, have ended. Employers must fund all SSP costs unless future state aid declaration programs are introduced.
Is SSP and company sick pay two different things?
Yes. SSP is the statutory minimum employers must pay, while company sick pay is an enhanced contractual benefit. Employers may choose to offer both, but eligibility, payment levels, and duration differ between the two schemes. To clarify, do employers claim back statutory sick pay? Employers can only reclaim the statutory portion of sick pay through specific government schemes, not any company sick pay benefits.
What steps should employers follow to claim back SSP if eligible?
If a future scheme opens, employers must follow UK government guidance, update payroll systems, and submit claims through PAYE. They should also maintain detailed records of statutory sick pay, including records of your employees, and employee sickness documentation. Currently, the Statutory Sick Pay Rebate Scheme closes, so no claims apply.
Where can employers find the latest government guidance on SSP reclaiming?
Employers can find the most up-to-date SSP reclaiming guidance on the official GOV.UK website, through HMRC resources, and employer bulletins. These provide the latest rules, updates, and any announcements about potential future SSP rebate schemes, especially during challenging times.
Are there any exceptions where employers can still recover SSP costs?
Most employers ask, “Can an employer claim back Statutory Sick Pay?” Currently, no active schemes allow SSP cost recovery. Past programs like the Percentage Threshold Scheme and COVID-19 rebate have ended. Any future opportunities would require new legislation. Employers should stay informed of changes by consulting employment law specialists or legal advisors.
What is the eligibility criteria for employers to claim back SSP?
Employers could previously claim back SSP under past schemes, like the Percentage Threshold Scheme. However, these programs have ended. Employers now need to comply with current regulations and maintain accurate records for any future changes to SSP legislation.
