Statutory Sick Pay (SSP)
Just like any other employee, when a nanny is absent from work due to sickness they are entitled to Statutory Sick Pay (SSP).
When SSP is due
SSP is paid for the days that the employee would normally have worked, excluding the first three consecutive full days absence due to illness (excluding days not normally worked). These three days are known as 'waiting days' and any payment of salary to the nanny for these days is at the employer's discretion. On the fourth consecutive day of absence SSP is paid instead of, or as part of, the nanny's normal rate of pay, and can continue for up to 28 weeks.
Nannies that have jobs with more than one family may get SSP from each employer.
How it is paid
SSP is paid in the same way as the nanny's normal salary (weekly or monthly), a payslip is provided as normal and Tax and National Insurance will be deducted in the usual way. Employers will need to make us aware of the sickness so that we can adjust the payslip to reflect this.
How much it is
SSP is currently paid at a rate £96.35 gross per week, to calculate the daily rate of SSP, you should divide this figure by the number of days that your employee works for you per week. So long as the employee qualifies they will get the full £96.35 per week gross regardless of how many days or hours they work per week. This may seem unfair but an employee who only works one day per week would have to wait 4 weeks before qualifying for it, whereas an employee who works five days per week would be paid SSP on their fourth day.
Who can and cannot qualify
To qualify employees must:
- be classed as an employee and have done some work for their employer.
- have been ill for at least 4 days in a row.
- be earning at least the Lower Earnings Limit.
- inform their employer within 7 days or by their employer's deadline (if they have one stipulated in their Contract of Employment).
Employees cannot qualify if:
- they have already received the maximum amount of SSP (28 weeks).
- have taken 3 years or more 'linked periods' of sickness - where 4 or more days of sickness happen within 8 weeks of each other.
- are receiving Statutory Maternity, Paternity or Adoption Pay.
Changes to the law from 6 April 2014
From the start of the tax year 2014/15, The Percentage Threshold Scheme (PTS) which allowed employers to recover SSP in certain circumstances has been abolished. Employers will no longer be able to reclaim SSP payments from HMRC. In replacement of the PTS, the government have announced they will be moving the funding into a new scheme as part of the cross-government Health, Work and Wellbeing Initiative. Under this new scheme, which is expected to launch in 2015, help will be made available to employees who have been incapacitated for four weeks or more in order to help them to get them back to work.