Pay: Occupational sick pay (OSP)

Statutory sick pay (SSP Statutory sick pay refers to the pay an employer must give you if you’re too ill to work. It’s paid to you by your employer for up to 28 weeks, based on certain eligibility criteria - the cost of SSP is no longer able to be recovered - SSP is no longer reported to HMRC on your EPS submissions) is paid when an employee is unable to work due to an illness or injury. Employers can choose to pay more, this is occupational sick pay (OSP). Find out about qualifying for statutory sick pay.

Before paying OSP, you must create an occupational sick pay (OSP) policy and assign it to the employee.

  1. Open the required company.

  2. Go to Employees.

  3. Select the required employee.

  4. Select Leave.

  5. Select Add Leave.

  6. Go to Type and select Sick Leave.

  7. Once an occupational policy is assigned to an employee, Paymentwill show Occupational Pay automatically.

    The default occupational sick policy is selected automatically.

  8. Enter the From and To dates.

    This is the period of sick leave. You can record if the absence was for AM or PM.

    Only full day absences contribute to a period of incapacity for work (PIW) Find out more.

  9. Add any additional details in Notes.

  10. Add any relevant files in the Documents section.

  11. Select Create to finish.

Good to know...

  • Occupational sick schemes, if configured, can pay OSP when an employee would otherwise not be entitled to statutory sick.

  • Occupational sick schemes are administered separately to linking periods. An employee may end occupational sick, however due to passing the linking period SSP may be due. You are legally required to pay SSP if the employee is entitled.