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HMRC internal manual

Statutory Payments Manual

Paying and Recovering - SSP: historical information

April 1983 to April 1991: employers were entitled to reimbursement of 100% of the SSP they had paid.

April 1985 and April 1991: employers were able to claim an additional percentage to compensate for the NIC paid on SSP.

From April 1991, the rate of reimbursement was reduced to 80% and the entitlement to compensation abolished. Special arrangements were introduced to enable small employers to recover 100% of the SSP paid to an employee after they had paid 6 times the weekly rate of SSP to that employee in a PIW.

From April 1994, the 80% reimbursement rate of SSP was abolished for all employers but SER continued with recovery at 100% commencing after four weeks SSP instead of six weeks.

In April 1995 SER was abolished for SSP purposes and replaced by the PTS scheme. This scheme compensated employers faced with high levels of sick absence. Employers could recover part of their SSP costs where they exceed a specified percentage of their total gross Class 1 NICs liability in a tax month. The amount reimbursed being the excess SSP paid above the percentage threshold.

In April 2014 PTS was abolished.

The legislation that covers SSP recovery is:

SSCBA 1992, Part XI

Statutory Sick Pay Percentage Threshold Order 1995

The Statutory Sick Pay Percentage Threshold (Revocations, Transitional and Savings Provisions) (Great Britain and Northern Ireland) Order 2014 (SI 2014)