Most employees fall ill at some point. Managing Statutory Sick Pay UK obligations correctly matters more than ever, following the Employment Rights Act 2025 reforms to how SSP is calculated. In 2024 alone, the Office for National Statistics reported that 148.9 million working days were lost to sickness or injury in the UK. As an employer, you need to know your obligations around time off, when SSP kicks in, how much employees are entitled to, and what happens when entitlement runs out.
Table of Contents
- Key Facts
- What Is Statutory Sick Pay?
- How Much Is Statutory Sick Pay in the UK?
- Who Pays For Statutory Sick Pay?
- How Much Does SSP Cost An Employer?
- Who Can Claim Statutory Sick Pay?
- When Does Statutory Sick Pay Kick In?
- What Happens When SSP Ends?
Key Facts
- As reported by GOV.UK, SSP is the UK’s government-mandated minimum sick pay, currently £123.25 a week for up to 28 weeks, paid by employers to eligible employees too ill to work.
- The Office for National Statistics reported that the UK sickness absence rate stood at 2.0% in 2024, with employees averaging 4.4 days of sickness absence each.
- Employment Rights Act 2025 reforms are estimated to raise employer SSP costs by around £450 million a year.
- Since 6 April 2026, SSP applies from an employee’s first day of sickness absence with no minimum earnings threshold.
It is also a good idea to track and monitor sick leave in your company to help you get a bigger picture of what’s going on with your workforce. You might uncover potential problem areas that you can address for the benefit of your employees and the business as a whole.
Purpose-built holiday and absence management software can automate this tracking, flagging qualifying days and calculating SSP entitlement automatically so your payroll team spends less time on manual sick-leave calculations.
The first step is making sure you are clear on all the basics. This includes your obligations as an employer, and what to do when one of your employees takes sick leave.
What Is Statutory Sick Pay?
Statutory Sick Pay (SSP) is a government-mandated payment that certain employees are entitled to when they are too sick to work. SSP is the minimum legal requirement employers must pay any eligible employee, regardless of contract type, who is off work due to illness, from their first day of sickness absence and for up to 28 weeks, according to GOV.UK. Since 6 April 2026, this first-day rule now applies to all qualifying sickness absences, not only COVID-19 cases, following the Employment Rights Act 2025 reforms confirmed by legislation.gov.uk. Self-employed individuals are not entitled to SSP.
If your company has implemented its own company sick leave policy, you must make sure that any sick pay terms meet minimum SSP requirements. Failure to do so could result in one of your employees filing an HMRC Statutory Payment Dispute notice.
How Much Is Statutory Sick Pay in the UK?
Statutory sick pay in the UK can be paid for up to 28 weeks, starting from an employee’s first day of absence, after the Employment Rights Act 2025 abolished the previous three-day waiting period. Employees only receive payment for ‘qualifying days’ (days they would have worked had they not been ill), and sick pay must be included in their regular payslip.
Following the 2025 reforms, eligible employees are now entitled to a maximum of £123.25 SSP per week, or 80% of their average weekly earnings if that figure is lower. This amount might be higher if you offer an enhanced occupational sick pay scheme, but it must never fall below the minimum statutory sick pay rate. You can use this handy government Statutory Sick Pay Calculator to work out exactly how much your employees are entitled to.
Most companies these days opt for their own occupational sick pay policy. They also offer a higher rate of sick pay to their employees. This is because most companies are now aware that the health and wellbeing of their employees has a direct impact on their business. Employees are a company’s most important asset, after all. Plus, offering perks such as an enhanced sick pay policy can help you attract and retain top talent. Something worth considering as an employer.
Who Pays For Statutory Sick Pay?
According to the Statutory Sick Pay (General) Regulations 1982, SSP is paid by the employer. You should include all SSP payments in an employee’s regular weekly or monthly payslip. You also need to make sure you deduct the necessary tax and national insurance contributions.
The only exceptions where you are not obliged to pay SSP are if an employee:
- Has been off sick for less than one full qualifying day, since SSP is now payable from the first day of absence.
- Has already exceeded their 28-week SSP allowance.
- Is already receiving Statutory Maternity Pay, or is off work for a pregnancy-related illness in the 4 weeks prior to their due date.
- Is working outside the EU and you are not liable for their National Insurance contributions.
- Has received Employment and Support Allowance within 12 weeks of starting or returning to work for you.
- Did not notify you of their absence in line with your internal procedures for absences.
- Has failed to supply you with evidence of their illness (self-certification for absences of less than 7 days, or a doctor’s fit note for absences over 7 days).
How Much Does SSP Cost An Employer?
All employers must pay Statutory Sick Pay. If an employee is eligible for SSP, you must pay them a maximum of £123.25 SSP per week, or 80% of their average weekly earnings if lower, from their first qualifying day of sickness, for up to 28 weeks.
Previously, you could recover some SSP costs if you paid a certain amount out in a month under the Percentage Threshold Scheme. However, the scheme was scrapped in 2014. Funding was diverted into schemes that help employees on long-term sick leave return to work quicker.
The temporary COVID-19 SSP Rebate Scheme has since closed. There is currently no general mechanism for employers to reclaim SSP costs from the government.
Employers looking to manage long-term sickness costs can instead signpost staff to occupational health support or Access to Work, since SSP itself is not currently recoverable from HMRC.
Who Can Claim Statutory Sick Pay?
Any employee, whether full-time, part-time, or on a fixed-term contract, can claim statutory sick pay provided they meet the eligibility criteria set by the UK Government.
First and foremost, in order to qualify for SSP, an employee must be able to demonstrate that they are ill. Employees can self-certify an illness for up to seven days. Any sick leave that lasts longer than a week must be backed up with a doctor’s sick note.
Secondly, employees must follow all your established internal procedures. This includes reporting their absence through the right channels, in a timely manner. Make sure your employees and managers are aware of all policies and procedures relating to sickness and time off. This will also make it easier for your HR department to calculate payroll when an employee is sick.
Finally, an employee’s right to claim statutory sick pay will depend whether they are deemed eligible by law. An employee is eligible for statutory sick pay UK if they:
- Are classed as an employee for tax purposes, regardless of contract type.
- Have been off sick for at least one full qualifying day, since the four-day waiting period was abolished under the Employment Rights Act 2025.
When Does Statutory Sick Pay Kick In?
Since 6 April 2026, SSP kicks in from an employee’s first day of absence, known as the first ‘qualifying day’, after the Employment Rights Act 2025 abolished the previous three-day ‘waiting days’ rule.
Employers are now legally obligated to pay SSP from an employee’s first day of sickness absence, regardless of how short the absence turns out to be, provided the employee meets the eligibility criteria.
What Happens When SSP Ends?
If an employee has taken long-term sick leave and they have reached the 28-week limit for statutory sick pay, then there are a number of options that your employees might want to consider, especially if your company doesn’t offer extended sick pay.
First things first, you can encourage your employees to apply for Employment and Support Allowance or Universal Credit (ESA). You will need to send an SSP1 form to your employee for this. You need to send this form at least 7 days before their SSP entitlement ends (unless they are returning to work). It’s a good idea to get things moving much sooner though, as applications for ESA can take a while. At least 3 months before SSP expiry is a good idea.
Finally, it is important to remember that even when an employee’s SSP entitlement runs out, there is still an employment contract between both parties. This means that the employee should continue to keep you updated on their sickness and estimated return to work. Keep lines of communication open, and make sure you are clear about all requirements of your sickness policy and procedures. This will help you avoid any confusion or potential disputes.
FAQ
How much is Statutory Sick Pay in the UK?
The current rate for Statutory Sick Pay (SSP) in the UK is £96.35 per week for eligible employees. This can be paid for up to 28 weeks, starting from the fourth consecutive day of an employee’s absence due to illness.
Do I get full pay if I am off sick?
Not necessarily. You are entitled to the legal minimum of Statutory Sick Pay (SSP) if you qualify. Some companies offer a more generous contractual sick pay policy that might provide full pay for a certain period, so you should check your employment contract for details.
Do companies legally have to pay sick pay in the UK?
Yes, UK companies are legally required to pay Statutory Sick Pay (SSP) to eligible employees who are off sick for four or more consecutive days. However, payment is not required for the first three “waiting days” of sickness unless it’s a linked period of absence.
Who actually pays Statutory Sick Pay?
The employer pays Statutory Sick Pay directly to the employee through their regular payroll. It is processed like a normal wage, with tax and National Insurance contributions deducted. Using an all-in-one business management software like Factorial can help automate these calculations and ensure compliance.
What is the difference between sick pay and SSP?
Statutory Sick Pay (SSP) is the minimum amount legally required by the government for employers to pay eligible employees. “Sick pay” can also refer to a company’s own contractual or enhanced policy, which often provides more generous pay than the statutory minimum.
