Covid cases are on the rise again, which means many businesses are faced with further costs of sick pay if their employees are absent from work due to Coronavirus. However, to help support smaller businesses, the Government has a scheme in place that offers a sick pay rebate (related to Covid) for those with no more than 250 employees. This scheme is known as the Coronavirus Statutory Sick Pay Rebate Scheme.

Employers are able to use this relief scheme to reclaim up to two weeks of SSP that have been paid to employees due to COVID-19 related sickness absences.

Who can use the scheme?

This scheme is available to employers, and you are able to claim back up to two weeks of Statutory Sick Pay if:

  • you have already paid your employee’s sick pay
  • you’re claiming for an employee who’s eligible for sick pay due to coronavirus
  • you have a PAYE payroll scheme that was created and started on or before 28 February 2020
  • you had fewer than 250 employees on 28 February 2020 across all your PAYE payroll schemes

This scheme covers all types of employment contracts including; full-time, part-time, agency, flexible or zero-hour contracts and fixed term contracts. Instead of being paid SSP from the fourth day off as normal, SSP for COVID related absences will be paid from the first day of absence – however, the employee will still need to qualify for Statutory Sick Pay under the normal rules.

Eligibility criteria for reclaiming Covid-related SSP

  • Employers with less than 250 employees as of 28th February 2020
  • Only able to claim up to 2 weeks’ worth of SSP – even if the employee was absent for longer
  • The SSP can only be reclaimed if the sickness absence was due to COVID-19
  • Your PAYE payroll scheme was created and started on or before 28th February 2020

You are able to claim the rebate multiple times, however you cannot claim more than 2 weeks’ worth of SSP per employee.

For further information visit the dedicated page on the Government website.

To claim, click here.

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