Statutory Sick Pay (SSP) Rules
From 6 April 2026, SSP is £123.25 per week or 80% of average weekly earnings, whichever is lower, for up to 28 weeks. Following Employment Rights Act 2025 reforms, SSP is now payable from the first day of sickness absence (the 3 waiting days have been removed) and the lower earnings limit has been abolished, so all employees qualify regardless of pay.
Last updated: July 2026
£123.25 (or 80% of AWE if lower)
SSP weekly rate
Removed (day-one right, all earnings)
Lower earnings limit
28 weeks
Maximum duration
What the Law Says
Under the Social Security Contributions and Benefits Act 1992, employers must pay SSP to eligible employees. Reforms under the Employment Rights Act 2025 came into force on 6 April 2026: the 3 unpaid waiting days were removed, so SSP is now payable from the first day of sickness absence, and the lower earnings limit was abolished, meaning employees earning below the previous £125/£129 threshold now qualify for a proportionate SSP payment calculated as 80% of average weekly earnings (capped at the standard £123.25 weekly rate). Employers can no longer reclaim SSP from HMRC except under specific percentage threshold schemes.
Your Obligations as an Employer
- Pay SSP from the first day of sickness absence (no waiting days)
- Calculate SSP at 80% of average weekly earnings for lower-paid employees, capped at £123.25/week
- Accept self-certification for absences up to 7 days
- Maintain records of SSP payments for HMRC
- Issue SSP1 form if employee does not qualify for SSP
What to Include in Contracts
Include details of any enhanced company sick pay scheme, the notification procedure for reporting sickness, evidence requirements (self-cert vs fit note), and confirmation that SSP is the statutory minimum.
View related contract templateCommon Mistakes
- Not paying SSP because the employee is on a zero-hours contract
- Requiring a GP fit note for absences under 7 days
- Dismissing employees solely for short-term sickness absence
FAQ
Do employees accrue holiday while on sick leave?
Yes. Under UK law, statutory holiday entitlement continues to accrue during sickness absence, including long-term sick leave. Employees can carry over up to 20 days of unused statutory leave.
Can an employer dismiss someone on long-term sick leave?
Potentially, but only after following a fair process including occupational health assessment, considering reasonable adjustments, and exploring alternatives. Dismissal must be reasonable in all circumstances.
Stay compliant with UK employment law
AccountsOS generates compliant contracts and keeps you updated on your obligations. From £10/month.
This is guidance for UK employers, not legal advice. For complex employment law matters, consult a qualified employment solicitor or ACAS.
View all employment law topics