Everyone gets sick from time to time. From common colds to broken limbs, employers must aim to support staff whilst they’re off work with illnesses.
Let’s take a look at what SSP is, who qualifies for it, and what happens if employees are on sick leave for a long time.
What is Statutory Sick Pay?
Statutory Sick Pay (SSP) is a financial benefit given to employees who are too ill to fulfil their work duties. This includes both physical and mental health issues.
On April 6th, SSP saw significant reform from the . The three-day waiting period and Lower Earnings Limit have been removed; this means that all eligible workers will receive payment from the first full day of asbsence.
How much is SSP?
From the 6th of April 2026, Statutory Sick Pay is £123.25 per week or 80% of weekly wages, whichever is loser. This is the minimum amount that sick employees can receive. Meaning, employers cannot pay them less – but they can pay more. (This is usually done through contractual or occupational sick pay).
The Statutory Sick Pay amount that employees receive depends on the number of days they’d normally work each week – and how many of those days they’re off sick.
For example, an employee is off sick from Monday to Friday (which is their normal working week) and earns £500 per week. They’ll now receive SSP for all five days, because SSP is a day‑one right from April 2026 and the previous three waiting days have been removed. So, they receive £123.25 of Statutory Sick Pay per week (as SSP is paid at a flat weekly rate) because the standard rate is lower than 80% of their weekly wage.
Who is entitled to Statutory Sick Pay?
There are certain legal criteria that employees must meet for Statutory Sick Pay entitlement. For example:
- Class as an ‘employed earner’ with their workplace.
- Have completed some work with their workplace.
- Be absent for at least one full day.
An employee’s average weekly earnings are based on eight weeks prior to their sickness absence. Statutory Sick Pay for the self-employed doesn't exist under current employment law. Instead, they may seek, and be granted, financial support through government schemes.
Is Statutory Sick Pay a legal requirement?
Yes, paying SSP is a legal requirement. In the UK, Statutory Sick Pay law is covered by the Statutory Sick Pay (General) Regulations 1982 and the Social Security Contributions and Benefits Act 1992.
Who pays Statutory Sick Pay?
Employers pay their staff Statutory Sick Pay, just like they would their normal wages. For example, paying it on a monthly basis.
Is SSP taxable?
Yes, Statutory Sick Pay is taxable. The calculations are usually added to payslips where appropriate tax deductions are outlined. Some of the main ones include:
- National Insurance Contributions (NIC).
- Pension contributions.
- Student loan repayments.
What happens when Statutory Sick Pay runs out?
There are several factors which lead to Statutory Sick Pay ending. For example, the employee could recover return to work. Alternatively, they may have already used up their 28 weeks of SSP; or their could have expired.
When an employee’s SSP entitlement has been exhausted, you need to provide them with an SSP1 form. This must be done either:
- Within seven days of their SSP period ending. (This is when SSP ends unexpectedly whilst the person is still ill).
- On or before the beginning of the 23rd week. (This is when SSP ends as expected before the person gets better).
If an employee doesn’t qualify for SSP, you must send them an SSP1 form within the first seven days of their first sick day.
What happens if employees aren’t eligible for Statutory Sick Pay?
Some employees may lack eligibility for Statutory Sick Pay. This could relate to their work accomplishments or even existing financial benefits they receive.
Employers can divert them towards seeking external financial aid, like Universal Credit (UC), Employment and Support Allowance (ESA), and Personal Independence Payment (PIP).
Do employees on long-term sick leave qualify for Statutory Sick Pay?
Most employees on do qualify for Statutory Sick Pay. In these situations, it’s important to assist them during this time, whilst minimising any business disruptions. In some cases, it can be deemed reasonable to end their contract due to poor health conditions.
How to calculate Statutory Sick Pay
When calculating Statutory Sick Pay, qualifying employees receive it based on two elements:
- The number of days they'd normally work each week.
- How many of those days they're off sick from work.
For example, an employee who earns £500 per week week is off sick Monday to Friday (which is their normal working week), SSP is due for all days of sickness.
The employee is set to receive £123.25 of Statutory Sick Pay per week because this is lower than 80% of their weekly wage.
The employee is set to receive £123.25 of Statutory Sick Pay per week because this is lower than 80% of their weekly wage.
For a detailed overview of what's been updated, . Also, check out our offered as part of Peninsula’s HR services. It’s efficient for working out how much qualifying employees get when they’re off sick.
How to offer Statutory Sick Pay within your workplace
All employers have a legal duty to . This includes supporting them when they’re too sick to work. By following the laws on sick pay, you’ll be able to offer much-needed financial support – encouraging a healthy, speedy recovery.
Let’s take a look at what the steps are when offering Statutory Sick Pay in your workplace:
Check if they’re eligible for SSP
The first step employers should take is checking what eligibility criteria must be met for employees to receive Statutory Sick Pay. Under employment law, they must:
- Class as an ‘employed earner’ (where they’re liable to paying National Insurance Contributions).
- Have completed some work for their employment.
- Have been off sick for at least one complete day.
See if they’ve reported sickness absence
Employees who are too sick to work must inform their workplace about their conditions. This is usually done through contacting their direct manager or reporting it through an .
If an employee is sick for less than seven days, you should ask them to complete a form of self-certification when they return explaining their situation.
Request a fit note
Employees who are off work sick for more than seven days in a row (including non-workdays) must provide a . Fit notes, (or sick notes), are only issued by certain healthcare professionals like:
- GPs or hospital doctors.
- Registered nurses.
- Occupational therapists.
- Pharmacists.
- Physiotherapists.
Some businesses do accept alternative forms of sick notes. For example, Allied Health Professional (AHP) Health and Work Reports are available from physiotherapists, podiatrists, and occupational therapists.
It all depends on what the employee’s illness is, how long they’ve been on leave for, and whether they’re fit enough to work (or require further recovery).
Offer sick pay through proper procedures
At this point, employers will be aware of whether a sick employee is entitled to SSP based on their health situation. You must offer the payment through the correct procedures, in accordance with the law.
Statutory Sick Pay rates are usually calculated and paid through automatic payroll systems. The systems will also calculate tax deductions for SSP amounts, too. For example, National Insurance Contributions, pension payments, or Student Finance deductions.
It’s important to note that if an employee has two or more jobs, they could potentially receive SSP from each job. This doesn’t mean you’re allowed to deny any amount of SSP your business owes to them (if they meet the eligible criteria).
FAQs: What is statutory sick pay? (SSP)
How much do I need to pay an employee for SSP?
The weekly rate is set at £123.25. As the employer, you pay the days the employee usually works (qualifying days). To work out the daily rate, divide the weekly rate by the number of qualifying days in that week.
When does SSP start and how long can I pay it?
SSP starts from the first full day of absence and employers can pay SSP for a maximum of 28 weeks in any single period of sickness or linked periods.
What are “linked” periods of sickness?
Should an employee have separate periods of sickness that are less than eight weeks apart, they’re viewed as one continuous period of incapacity for work (PIW) in relation to the reference period for calculating 80% of pay. .
Can I offer a different sick pay scheme?
If stated in the contract of employment, you may offer a contractual or occupational pay scheme. You mustn’t offer less than the statutory minimum amount or fewer rights than SSP.
Can I reclaim SSP costs from the HMRC?
Since 2014, employers haven’t been able to reclaim SSP costs from the government—all SSP costs are the employer’s responsibility.
Get expert advice on Statutory Sick Pay with Peninsula
Being ill is a normal part of life; meaning, employers must learn to navigate around sickness absences. With the right steps, you’ll be able to follow the appropriate methods when it comes to financially supporting sick staff. You can also download our free guide to 2026 to keep your business compliant.
