What is Statutory Sick Pay?

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.

As of 2024, new laws on Statutory Sick Pay (SSP) have been proposed by the Labour government. These legal amendments aim to provide financial and welfare support for sick employees – encouraging a speedy recovery and return to the workplace.

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.

Under employment law, employees only receive Statutory Sick Pay after they’ve been ill for four days or more. This includes non-working days, like weekends or public holidays.

The first three days of their sickness leave are unpaid; these are known as the ‘waiting days’. From the fourth day onwards (or ‘qualifying days’), SSP is provided if they meet the right requirements. Sick pay lasts up to at least 28 weeks.

How much is SSP?

From the 6th of April 2025, Statutory Sick Pay is £118.75 per week. 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). They’ll only receive SSP for two days, as the first three count as waiting days. So, they receive £47.50 of Statutory Sick Pay per week (as £116.75÷5).

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.
• Earn at least £125 per week (on average).
• Have completed some work with their workplace.
• Have been sick for more than three days in a row (includes non-workdays).

An employee’s average weekly earnings are based on eight weeks prior to their sickness absence.

Are workers eligible for Statutory Sick Pay?

As of 2024, only certain types of workers have Statutory Sick Pay eligibility only applies to certain types of workers.

Let’s take a look at the government’s new proposal on Statutory Sick Pay:

• Zero-hour workers: They qualify for SSP if they’re an ‘employed earner’. They must also have completed some work for their employment.
• Agency workers: They qualify for SSP if they meet the same criteria above. Whoever employs them (like, their agency or umbrella company) should provide Statutory Sick Pay.
• Part-time workers: They qualify for SSP if they meet the same criteria above. They must also earn at least £125 per week.

Statutory Sick Pay for the self-employed doesn’t exist under current employment law. This applies even if they class as a ‘worker’. Self-employed people may be able to get 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.

The new Labour government plans to introduce new legislation relating to SSP qualifications. Through the new Employment Rights Bill 2024, the government aims to end the three-day waiting period. They also plan to remove the lower earnings limit for SSP eligibility.

The legislative change means all employees could be entitled to SSP from the first day of their sickness absence. This no longer depends on who much they earn.

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.

Previously, employers were able to reclaim Statutory Sick Pay from the government. However, the COVID-19 pandemic left many businesses having to pay extortionate SSP rates. Since then, the government has scrapped this scheme.

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.

If employees earn £12,570 (as of the 2025/26 tax year), their Statutory Sick Pay rates may be tax-free as their wage falls under the tax threshold.

What happens when Statutory Sick Pay runs out?

There are several factors which lead to Statutory Sick Pay ending. For example, they could recover and decide to return to work. From a negative perspective, they may have already used up their 28 weeks of SSP; or their fit note could have expired.

When an employee’s SSP comes to an end, you need to provide them with an SSP1 form. This must be done either:

1. Within seven days of their SSP period ending. (This is when SSP ends unexpectedly whilst the person is still ill).
2. 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 long-term sick leave do qualify for Statutory Sick Pay. This is when a person is off sick for more than four weeks.

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:

1. The number of days they’d normally work each week.
2. How many of those days they’re off sick from work.

For example, an employee is off sick from Monday to Friday (which is their normal working week). You can only apply Statutory Sick Pay from the fourth day of sick leave as the first three days (or ‘waiting days’) are unpaid.

This employee is set to receive £47.70 of Statutory Sick Pay per week. (The calculation is £118.75/5=£23.75 per day). Check out our Sick Pay Calculator offered as part of Peninsula’s HR services. It’s super helpful 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 protect the health, safety, and welfare of their staff. 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).
• Earn at least £125 per week (on average).
• Have completed some work for their employment.
• Have been sick for more than three days in a row (includes non-workdays).

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 absence line.

If an employee is sick for less than seven days, they’re not required to provide evidence of their ill-health. They can present some form of self-certification when they return explaining their situation. This can be done either in writing or through verbal means.

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 note. 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).

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.

Peninsula offers expert advice on Statutory Sick Pay. We also offer 24-hour HR advice – helping employees get better and return to work safely.

Want to find out more? Contact us on 0800 028 2420 and book a free consultation with an HR consultant today.