Statutory Sick Pay Recovery Scheme Abolished


01 May, 2014

With effect from the 6th April 2014, the Percentage Threshold Scheme (PTS) has been abolished. The PTS enabled employers to recover some of the Statutory Sick Pay (SSP) paid to their employees if the total SSP paid was more than 13% of the Class 1 National Insurance contributions due for the month. The associated SSP record-keeping requirements have also been abolished, albeit Employers are still required to maintain records for PAYE purposes, and to demonstrate they are still meeting their SSP obligations.

Employers will have until the end of 2015/16 to recover SSP for sickness absences occurring before the end of 2013/14.

The Government has announced that the PTS will be replaced by a new scheme designed to help employees who have been off work for 4 weeks or more return to employment. It is anticipated that this scheme will form part of the Government's health, work and wellbeing initiative, details of which are expected to be announced later in the year. With the cost of cost of sickness absence to the UK economy reaching £14 billion in 2013, the new Health and Work Service is intended to make expert health and work advice readily available to employers and employees, and assist employers to better manage sickness absences.

With the financial impact of the changes expected to be felt more acutely by smaller firms that now would be an ideal opportunity for firms to review their existing policies for dealing with sick leave, to ensure they are suitably robust for ensuring a speedy return to work of employees where possible.

For a complimentary review of your policies and procedures, contact the Forbes' Employment Team today on 01772 220022.


Make an enquiry