An Employer’s Guide to Payrolling Statutory Payments


As an employer there are various statutory payments that you must pay your employees when they become eligible for them. Thinking about if your employee is eligible and what they need to be paid can seem like a daunting subject! This guide contains everything you need to know about making statutory payments.


Statutory Sick Pay (SSP)

For the 2021-22 tax year, Statutory Sick Pay should be paid at £96.35 per week and can be paid by an employer for up to 28 weeks of illness. After the 28 weeks, it is then at the discretion of the employer whether they continue to pay sick pay. Some companies offer a ‘Company sick scheme’, which may mean that the employee will be paid more than the SSP entitlement. If offered, this should be explained in the employment contract.

Is my employee eligible for SSP?

Linked periods of sickness

If you are ill for more than 4 days on multiple occasions that are less that 8 weeks apart, the sickness may be classed as being ‘linked’. This means that you do not have the 3 days unpaid ‘waiting period’ for every spell of sickness. If this is continuous for more than 3 years, you will no longer receive SSP.

As an employer, you cannot claim Statutory Sick Pay back from HMRC unless the sickness is Covid-19 related.

There are different rules regarding sick pay due to Coronavirus. If you would like further information on this, please call us on 01785 254550.


Statutory Maternity Pay (SMP)

Statutory Maternity Pay is paid to an employee for up to 39 weeks.

What should I pay my employee?

SMP starts when an employee begins their maternity leave, it also automatically begins if the employee is unable to work due to a pregnancy related illness within the 4 weeks before the baby is due.

Is my employee eligible for SMP?

Can I claim back SMP from HRMC?

Employers can claim the SMP payments back from HMRC by reducing their monthly PAYE payments by the SMP amount.


Statutory Paternity Pay (SPP)

For the 2021-22 tax year, SPP is paid at the lower of £151.97 per week or 90% of the employee’s average gross weekly earnings.

Employees have a choice of taking SPP for 1 or 2 consecutive weeks leave and the start date must be either the day the baby is born or an agreed number of days following the birth.

Is my employee eligible for SPP?



Shared Parental Pay (ShPP)

Shared Parental Leave/Pay allows parents to split leave and pay following the birth of a baby.

Is my employee eligible for ShPP?

What should I pay my employee?

ShPP is paid at the lower of £151.97 per week or 90% of your average weekly earnings.


Statutory Adoption Pay

Statutory Adoption Leave is made up of 52 weeks split into 26 weeks Ordinary Adoption Leave and 26 weeks Additional Adoption Leave. Only one person in the couple can take adoption leave, however if this is the mother, then the father may also be entitled to Paternity Leave.

Adoption leave can start up to 14 days before the child starts living with you.

Is my employee eligible for SAP?


What should I pay my employee?


All the above payments must be recorded, processed and submitted to HMRC through a payroll scheme.

If you require any further information regarding any of the above statutory payments, please feel free to give us a call on 01785 254550.