Does Sick Pay Reset Every Year?

Statutory sick pay is calculated on a 12-month rolling basis, commencing on the first day of absence and concluding precisely 12 months (28 weeks) following this date. Employers are obligated to pay staff Statutory Sick Pay (SSP) for the first 28 weeks of their absence.

SSP begins when a staff member cannot work for a period exceeding three days due to illness, with the payment cycle officially beginning on the 4th day. Sick pay does not reset on a fixed date each year but rather 12 months following an initial period of sickness.

Yearly Sick Pay Entitlement

There are two forms of sick pay in the UK: statutory and contractual/occupational. Statutory sick pay is the minimum national average allowance, while contractual sick pay is stipulated within an employee’s contract prior to entering employment. Some employers may also decide to pay employees in full for a certain period before reverting to SSP.

Individuals receiving SSP can expect to be paid £116.75 per week, regardless of their official yearly salary. A staff member may also decide to take paid holiday leave when they are sick, as paid holiday or annual leave is often equivalent to the standard working wage.

It is worth noting that employees also accrue holiday (annual leave) while absent due to sickness and should discuss using this entitlement during the sickness period. This is especially pertinent if an employee has used their 28-week allotment.

The UK Government decides the statutory sick pay rate, and employers cannot pay sick staff members a sum any lower than this amount. Of course, individuals who are self-employed are not entitled to any sick pay unless they are eligible for certain government benefits such as Universal Credit or Personal Independence Payment (PiP).