Help Centre for Payroll bureaux

Is Statutory Sick Pay included as part of qualifying earnings for the purposes of a workplace pension?

Yes. Automatic enrolment legislation requires Statutory Sick Pay (SSP) to be treated as part of qualifying earnings.

During sick leave, pension contributions paid by both employers and employees are based on the employee’s actual earnings.

So unless the contract of employment or the workplace pension scheme rules offer more generous terms, both employer and employee contributions will decrease if sick pay is less than normal pay.

What are qualifying earnings?

Qualifying earnings are earnings of between £6,240 and £50,000 made up of any of the following components that are paid to employees:
• salary
• wages
• commission
• bonuses
• overtime
• statutory sick pay
• statutory maternity pay
• ordinary or additional statutory paternity pay
• statutory adoption pay.

NOW: Pensions has a good technical infrastructure combined with a pension product suitable for our team. We couldn’t be happier with NOW: Pensions.
Martin Woods, SALT.agency