Payroll

What is Statutory Sick Pay (SSP)?

SSP is the minimum amount employers must pay employees who are off sick. Since 6 April 2026 it is paid from the first day of sickness, and every employee qualifies whatever they earn.

Current Rate (2026/27)

£123.25/week, or 80% of average weekly earnings if lower (2026/27)

Example

An employee on £600 a week, working five days, is off sick for 10 working days. 80% of £600 is £480, more than £123.25, so the full rate applies: £123.25 / 5 = £24.65 a day, and SSP for 10 days = £246.50.

Key Dates

Payable from the first day of sickness for up to 28 weeks (waiting days removed on 6 April 2026)

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 2026/27, SSP is £123.25 a week, or 80% of the employee's average weekly earnings if that is lower. Since 6 April 2026, under the Employment Rights Act 2025, it is payable from the first day of sickness: the three unpaid 'waiting days' have been removed. 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 under their contract, and must have been sick for at least one full working day. There is no longer any minimum earnings test: the Lower Earnings Limit condition was removed on 6 April 2026, so lower earners now get 80% of their average weekly earnings instead of nothing. 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, SSP is due from their first qualifying day off (a qualifying day is a day they would normally work). There are no waiting days since 6 April 2026.

Work out the weekly rate first: the lower of £123.25 and 80% of the employee's average weekly earnings. Divide that by the number of qualifying days in the week to get the daily rate. For someone on £600 a week who works five days, 80% of £600 is £480, so the £123.25 rate applies and the daily rate is £123.25 / 5 = £24.65. For someone on £120 a week, 80% is £96, so they get £96 a week instead. 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

Still applying the three waiting days, which were removed on 6 April 2026: SSP is now due from the first day of sickness
Not paying SSP because the employee is on a zero-hours contract or low pay: since 6 April 2026 there is no earnings threshold, and lower earners get 80% of their average weekly earnings
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 a week?

They still qualify. The Lower Earnings Limit condition was removed on 6 April 2026, so every employee gets SSP. If 80% of their average weekly earnings is less than £123.25, they get that 80% figure instead of the full rate.

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 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

Confused by accounting jargon?

AccountsOS explains everything in plain English. Ask any question about your books and get a clear, jargon-free answer.

Try Free for 14 Days

View full glossary