Calculating sick pay in the UK can seem complicated, especially when you need to consider an employee’s earnings, working pattern and length of absence.
The rules changed on 6 April 2026. Statutory Sick Pay (SSP) is now available from the first full day an eligible employee is off sick, and the previous earnings threshold has been removed. For the 2026/27 tax year, SSP is paid at £123.25 per week or 80% of the employee’s average weekly earnings, whichever is lower.
This guide explains what you need to calculate SSP, how to work out an employee’s entitlement and how the rules apply in common workplace situations.
Before calculating Statutory Sick Pay
First, before you start calculating SSP, you need to check that the employee is eligible. In general, they must:
- Be classed as an employee
- Have done some work for your business
- Be unable to work because of illness for at least one full working day
- Tell you about their sickness within your company’s deadline, or within seven days if you have not set one
Before starting your calculations, understand these few key terms and check that the employee is eligible. Below you will find an explanation of the terms. To learn more, read our full guide on Statutory Sick Pay in the UK.
Be classed as an employee
An employee is someone who works for your business under an employment contract. This can include full-time, part-time and some casual workers. SSP rules do not usually apply to genuinely self-employed people.
Have done some work for your business
The employee must have started working for you. They do not usually qualify for SSP before their first day of work.
Unable to work because of illness
The employee must be ill or injured and unable to carry out their normal work. To qualify for SSP, they must be off work for at least one full working day.
Tell you about their sickness
The employee must let you know that they are ill and cannot work. They should follow your company’s sickness reporting procedure, such as contacting their manager by phone or using an absence system.
If your company has not set a reporting deadline, the employee should tell you within seven days of the first day of sickness.
From 6 April 2026, UK GOV says there is no minimum earnings threshold for SSP. A minimum earnings threshold is the lowest amount an employee must earn to qualify for a payment. The changes to SSP mean lower-paid eligible employees can receive pay too.
Information you need to calculate sick pay
Once you have verified that the employee is eligible, you can then start calculating sick pay. You will have to collect some basic information regarding the employee first. Collecting information of this sort is easiest when you store everything in an employee portal, making it easy to search for important documents and other data.
The employee’s average weekly earnings
SSP is based on the employee’s average weekly earnings, often shortened to AWE. Employers will usually calculate this using earnings over an eight-week period before the sickness absence begins.
The employee’s qualifying days
Qualifying days are the days the employee would normally work.
For example, if an employee normally works Monday to Friday, they have five qualifying days each week. Saturday and Sunday would not normally count towards their SSP calculation.
The employee’s weekly SSP rate
For the 2026/2027 tax year, the maximum weekly SSP rate is £123.25.
However, employees do not automatically receive £123.25. Their weekly SSP is whichever is lower:
- either £123.25
- or 80% of their average weekly earnings
For example, if an employee’s average weekly earnings are £100:
£100 x 80% = £80
Their weekly SSP rate would therefore be £80, rather than £123.25.
If their average weekly earnings are £500:
£500 x 80% = £400
Because £123.25 is lower than £400, their weekly SSP rate would be £123.25.
You should also check whether the employee is entitled to contractual sick pay through your company’s own sick leave policy. Contractual sick pay can be more generous than SSP, so check the employee’s contract and your sickness policy. In your company policy, you may even outline other options for employees who want to work from home instead of taking sick leave.
Step-by-step instructions for calculating SSP entitlement
Once you have the employee information above, you can calculate SSP in a few simple steps.
Step 1: Check the dates of the sickness absence
Find the first full working day the employee was unable to work because of illness.
Under the rules introduced on 6 April 2026, SSP is payable from the first full qualifying day of sickness. The previous three waiting days no longer apply.
If an employee works for part of a day before going home sick, that day does not normally count as a full sickness day for SSP purposes.
Step 2: Work out the employee’s average weekly earnings
Average weekly earnings are usually based on earnings paid during a relevant period of at least eight weeks before the first full day of sickness.
For a weekly paid employee, this will usually mean adding together their earnings during the relevant eight-week period and dividing the total by eight.
There are different calculations for monthly paid employees and people who have only recently started their job.
Step 3: Find the employee’s weekly SSP rate
Calculate 80% of the employee’s average weekly earnings:
Average weekly earnings x 0.8
Then compare the result with the standard weekly SSP rate of £123.25.
Use whichever amount is lower.
For example:
Average weekly earnings: £300
80% of £300: £240
Maximum SSP rate: £123.25
Weekly SSP entitlement: £123.25
Step 4: Count the employee’s qualifying days
Next, work out how many qualifying days the employee normally has each week.
- Someone working Monday to Friday normally has five qualifying days.
- Someone who normally works Monday, Wednesday and Friday would usually have three.
SSP is paid for full sickness days on which the employee would normally have worked.
Step 5: Calculate the daily SSP rate
Next, divide the employee’s weekly SSP rate by the number of qualifying days in the week.
The formula is:
Weekly SSP rate ÷ number of qualifying days = daily SSP rate
For an employee entitled to the full £123.25 weekly rate who normally works five days:
£123.25 ÷ 5 = £24.65 per day
Step 6: Multiply the daily rate by the number of qualifying sickness days
Finally, count how many qualifying days the employee was off sick and multiply this by the daily SSP rate.
For example, if the employee was entitled to £24.65 per day and missed three qualifying days:
£24.65 x 3 = £73.95 SSP
HMRC publishes daily SSP rates for different working patterns. For irregular working patterns or more complicated cases, employers can also use the government’s SSP calculator.
Example scenarios of calculating sick pay
Here are three simple SSP calculations using an employee who normally works Monday to Friday and qualifies for the full £123.25 weekly SSP rate.
SSP Calculation Example 1
In scenario one, an employee normally works Monday to Friday each week. They fall ill on Monday and are absent for the entire working week, returning to work the following Monday.
The weekly SSP rate is £123.25.
To calculate the daily SSP rate:
£123.25 ÷ 5 = £24.65 per day
Because SSP now applies from the first full qualifying day of sickness absence, all five working days qualify for SSP.
The employee is absent from Monday to Friday.
Total SSP payable:
5 x £24.65 = £123.25
The employee should therefore receive £123.25 in SSP for the week.
SSP Calculation Scenario 2
In scenario two, the same employee falls ill on Saturday and remains unwell throughout the following working week, returning to work the next Monday.
Although the sickness started on a Saturday, the employee does not normally work weekends. Their qualifying work days are therefore Monday to Friday.
The weekly SSP rate remains £123.25.
Daily SSP rate:
£123.25 ÷ 5 = £24.65 per day
As SSP is payable from the first full qualifying day of sickness absence, all five working days qualify.
Total SSP payable:
5 x £24.65 = £123.25
The employee receives £123.25 in SSP.
SSP Calculation Scenario 3
In scenario three, the same employee takes another period of absence due to sickness two weeks after their previous absence. This time, they are absent from Wednesday until the following Monday, returning to work on Tuesday.
The employee’s qualifying work days during this absence are:
- Wednesday
- Thursday
- Friday
- Monday
The weekly SSP rate is £123.25.
Daily SSP rate:
£123.25 ÷ 5 = £24.65 per day
Because SSP is payable from the first full qualifying day of absence, all four qualifying work days are included in the calculation.
Total SSP payable:
4 x £24.65 = £98.60
The employee should therefore receive £98.60 in SSP for this period.
Because this period of sickness starts within eight weeks of the previous period, the two absences may be treated as linked periods. Linking does not bring back waiting days, but it can matter when tracking the employee’s overall SSP entitlement.
After calculating SSP
Once you have calculated the correct SSP amount, it should be processed through payroll. SSP is normally paid on the employee’s usual payday, in the same way as their normal wages. Income Tax and National Insurance are deducted where applicable. Learn all about tax codes and what a payslip includes in our other articles.
Employers should also make sure they:
- Keep accurate records of the sickness absence and SSP calculation
- Check whether the absence links to an earlier period of sickness
- Apply any contractual sick pay provided by the company
- Ask for appropriate evidence if the employee is off for more than seven consecutive days
- Monitor how much SSP the employee has received
An employer can only ask for a fit note when an employee has been off work for more than seven days in a row, including days they would not normally work.
SSP can normally be paid for a maximum of 28 weeks. If an employee is not entitled to SSP or their entitlement is coming to an end, the employer may need to provide them with an SSP1 form.
Simplify your payroll with Factorial
Calculating SSP is only one of the variables payroll teams need to manage every month. Keeping sick leave, working hours, expenses, benefits and salary information in separate spreadsheets can quickly make payroll more complicated. Factorial helps eliminate manual work and reduce payroll errors by centralising compensation data and automating payroll variable management.
With the new Compensation module, preparing payroll becomes faster and more reliable. You can now:
- Automatically collect payroll variables from other Factorial features like Time Tracking, Expenses and Benefits
- Validate compensation data to detect missing or incorrect amounts before payroll calculation
- Export payroll data easily, either as a standard file or directly through API integrations
- Import payslips back into Factorial to consolidate data and help ensure accuracy
With Compensation, you gain greater control over your payroll process in one connected platform. Request a free demo of Factorial to see the platform for yourself.
Frequently Asked Questions about Calculating Statutory Sick Pay
For the 2026/27 tax year, SSP is £123.25 per week or 80% of the employee's average weekly earnings, whichever is lower. SSP can normally be paid for up to 28 weeks.
From 6 April 2026, the lower earnings threshold for SSP was removed and SSP became payable from the first full day of qualifying sickness absence. Employees receive 80% of their average weekly earnings or the standard £123.25 weekly rate, whichever is lower.
First, calculate the employee's average weekly earnings. Take 80% of this figure and compare it with £123.25. The lower amount is the employee's weekly SSP rate. For a simple working pattern, divide this weekly amount by the number of qualifying days the employee normally works, then multiply the daily rate by the number of qualifying days they were off sick.
An employer cannot simply refuse to pay SSP if an employee meets the eligibility requirements. However, SSP may not be payable in certain circumstances. For example, an employee could lose SSP for some days if they fail to tell their employer about their absence within the required time without a good reason. There are also specific situations where an employee is not eligible for SSP.
There is no single legal limit on the number of days an employee can be off sick. However, SSP is normally available for a maximum of 28 weeks. Separate periods of sickness can also be linked if they are eight weeks or less apart, which can affect how the 28-week SSP limit is calculated. An employer's own absence and sick pay policies may also apply.
