Payroll

What is Statutory Sick Pay (SSP)?

SSP is the minimum amount employers must pay employees who are off sick for 4 or more consecutive days.

Current Rate (2025/26)

£118.75/week (2025/26)

Example

Employee is sick for 10 days. After 3 waiting days, pay SSP for 7 days = £116.75.

Key Dates

Payable from 4th day of sickness for up to 28 weeks

How Statutory Sick Pay (SSP) Works in Practice

Statutory Sick Pay (SSP) is the legal minimum amount employers must pay to employees who are unable to work due to illness. It is paid by the employer through the normal payroll process - you do not reclaim it from HMRC (the small employer recovery scheme ended in 2014 for most employers).

For 2025/26, SSP is £118.75 per week. It is payable from the fourth consecutive day of sickness (the first three days are 'waiting days' during which no SSP is due). SSP can be paid for a maximum of 28 weeks in a single period of incapacity for work. After 28 weeks, the employee may be able to claim Employment and Support Allowance (ESA) from the government instead.

To qualify for SSP, the employee must be classed as an employee (not self-employed), must have done some work for you, must earn at least the Lower Earnings Limit for NI (£125 per week in 2025/26), and must have been ill for at least four consecutive days (including non-working days). Agency workers and fixed-term contract employees also qualify if they meet these conditions.

SSP is subject to normal income tax and National Insurance deductions through PAYE, just like regular wages. Many employers offer contractual sick pay that is more generous than SSP, in which case SSP is included within the contractual amount rather than paid on top of it. Your employment contracts should specify what sick pay arrangements apply.

Step by Step

When an employee notifies you they are sick, the SSP clock starts from the first day of incapacity (which can include non-working days like weekends). The first three 'qualifying days' (days the employee would normally work) are waiting days with no SSP. From the fourth qualifying day onwards, you pay SSP for each qualifying day the employee is off.

SSP is calculated as a weekly rate (£118.75) divided by the number of qualifying days in the week. For someone who works five days a week, the daily rate is £118.75 / 5 = £23.75 per day. You add SSP to the employee's payroll in the normal way and deduct income tax and NI.

The employee must notify you of their sickness within your company's notification deadline (or within seven days if you do not have a specific policy). For the first seven days, the employee can self-certify their absence. After seven days, they need a fit note (formerly a sick note) from their GP. If the employee does not provide evidence of incapacity, you can withhold SSP.

Practical Tips

  • Have a clear sickness absence policy in your employee handbook that specifies notification requirements, fit note requirements, and any contractual sick pay arrangements above SSP
  • Use your payroll software to track SSP entitlement and the 28-week maximum automatically rather than trying to calculate it manually
  • Keep records of all sickness absences for at least three years - HMRC and employment tribunals may request these records
  • Consider offering enhanced sick pay above SSP to attract and retain staff, but make sure the terms are clearly documented in employment contracts

Common Mistakes to Avoid

  • Forgetting that the three waiting days include non-working days - if an employee falls ill on Friday, Saturday and Sunday are counted as waiting days even though they do not normally work those days
  • Not paying SSP because the employee is on a zero-hours contract - employees on variable hours can still qualify for SSP if they meet the earnings threshold
  • Paying SSP on top of contractual sick pay rather than including it within the contractual amount, effectively double-paying
  • Not keeping records of SSP payments and sickness absence, which HMRC can request during a compliance check

Frequently Asked Questions

Can I reclaim SSP from HMRC?

Generally no. The Percentage Threshold Scheme that allowed small employers to reclaim SSP was abolished in April 2014. Employers now bear the full cost of SSP. There was a temporary COVID-19 SSP rebate scheme, but this has ended.

What if my employee earns less than £125 per week?

Employees earning below the Lower Earnings Limit (£125 per week in 2025/26) do not qualify for SSP. You should provide them with form SSP1 so they can claim Employment and Support Allowance from the government instead.

Do I pay SSP for weekends and bank holidays?

You only pay SSP for qualifying days, which are the days the employee would normally work. If they do not normally work weekends, those days are not qualifying days and no SSP is due for them, although they still count towards the waiting days and the overall period of incapacity.

Can I dismiss an employee who is on long-term sick?

This is an employment law question rather than a payroll one. In principle, long-term sickness can be a fair reason for dismissal, but you must follow a proper process, consider reasonable adjustments, and be mindful of disability discrimination laws. Take legal advice before dismissing a sick employee.

What happens after 28 weeks of SSP?

SSP stops after 28 weeks. You must send the employee form SSP1 at least four weeks before SSP runs out so they can apply for Employment and Support Allowance. You may also need to consider whether the employee's role can be held open or whether a fair dismissal process should begin.

Source: HMRC Statutory Sick Pay guidance - What you'll get; Employer guidance: Statutory Sick Pay (SSP) - Calculate your employee's SSP

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