Contact Applegrow Financial Advisors for tailored advice on statutory sick, maternity and paternity pay and how it applies to your business.
Supporting your employees through sickness, pregnancy and early parenthood is vital for business reputation, morale and compliance. The UK has specific statutory pay rules for these circumstances, and understanding them helps employers fulfil legal obligations while managing costs and employee expectations.
Statutory Sick Pay (SSP) is the minimum amount employers must pay eligible employees when they are unable to work due to illness.
Who qualifies?
An employee qualifies for SSP if they:
Are classed as an employee under UK law
Have been off sick for at least four consecutive days (including non‑working days)
Earn above the Lower Earnings Limit for National Insurance
SSP is payable for up to 28 weeks and must be at the statutory rate set by government. Employers can choose to pay more than the statutory rate under contractual sick pay schemes, but SSP is the legal minimum.
Employer responsibilities
Employers must:
Keep accurate records of sickness absences
Define a clear sickness reporting process
Ensure payroll reflects SSP and any contractual sick pay
Failing to comply with SSP rules can lead to penalties and disputes.
Statutory Maternity Pay (SMP) supports employees who are pregnant or have recently given birth. It helps provide financial security during maternity leave.
Eligibility
To qualify for SMP, an employee must:
Give correct notice and evidence of pregnancy
Have worked for the employer for a qualifying period
Earn at or above the Lower Earnings Limit
SMP is typically paid for up to 39 weeks, with a set period at a higher rate followed by weeks at the standard (lower) rate, as defined by UK law.
Employer obligations
Employers must:
Issue written SMP notification details
Calculate SMP correctly
Report SMP through payroll and real time reporting (RTI)
Understanding the timing of payments and notification requirements is crucial to avoid errors and employer liability.
Statutory Paternity Pay (SPP) applies to eligible employees when a child is born or placed for adoption.
Who qualifies?
An employee may qualify for SPP if they:
Are the biological father or an “adopter’s partner”
Have worked for the employer for a qualifying period
Give correct notice and evidence of their entitlement
SPP is available for a limited number of weeks and is payable at the statutory rate. It must be claimed within defined timeframes surrounding the birth or placement.
Employer duties
Employers should:
Check eligibility criteria carefully
Confirm payment period and amount
Report SPP in payroll accurately
Failing to manage paternity pay correctly can lead to employee dissatisfaction and compliance issues.
Recent UK rules allow parents to share parental leave and pay in certain situations once maternity leave ends. While this is not statutory maternity or paternity pay itself, employers should be aware that employees may request shared parental arrangements, and guidance on eligibility and payroll implications may be needed.
Accurate record keeping is essential for statutory pay. Employers must retain:
Records of sickness absences and certifying notes
Maternity and paternity notice forms
Payroll records showing statutory pay amounts
These records support compliance with HMRC and avoid potential disputes.
Some employers choose to offer enhanced pay schemes that go beyond statutory minimums in order to attract and retain talent. Examples include:
Full pay for a set period of maternity leave
Enhanced sick pay linked to length of service
Additional parental leave benefits
If you offer enhanced terms, make sure they are documented in your employment contracts and staff handbooks.
Statutory pay rules can be detailed and change over time. Applegrow Financial Advisors can assist with:
Reviewing and updating your pay policies
Ensuring payroll systems handle statutory pay accurately
Providing training and guidance to HR teams
Advising on enhanced benefit schemes beyond statutory minimums
Supporting you through compliance checks or HMRC enquiries
With professional support, you can manage statutory pay confidently and ensure your workforce feels supported in times of sickness and family change.
Contact Applegrow Financial Advisors for tailored advice on statutory sick, maternity and paternity pay and how it applies to your business.
