Under The Percentage Threshold Scheme (PTS) employers can reclaim Statutory Sick Pay (SSP) where the amount it paid is more than 13% of the Class 1 NIC due for the month. It compensates employers for higher than average sickness absence. The Government is taking steps to abolish the scheme at the end of the 2013/14 tax year i.e. 5th April 2014. Employers will, however, have a further 2 years to recover SSP paid for sickness absences occurring before 6th April 2014.
The change comes following an independent review of sickness absence which showed that the existing system has not encouraged employers to manage sickness absence in the workplace. As a result the funding will be put into a Health and Welbeing initiative which is designed to encourage employers to get their workers back to work more quickly following sickness absence.