Employers’ guide to Statutory Sick Pay
Statutory Sick Pay (SSP) sets the legal minimum UK employers must pay workers unable to work due to illness. The rate is £123.25 per week or 80% of average weekly earnings, whichever is lower. Payments continue for up to 28 weeks, though eligibility rules have changed in recent years.
Who qualifies—and who doesn’t
Employees must hold a valid contract and notify their employer of illness within seven days, or sooner if the company requires it. Payments now start from the first full day of absence, a change introduced by the Employment Rights Act 2025. Before this update, workers waited until the fourth day.
Some workers remain ineligible. Those who’ve already received 28 weeks of SSP, are on maternity leave, or were in custody on their first sick day cannot claim. Employees receiving Employment and Support Allowance within 12 weeks of starting or returning to work are also excluded. Agency workers may qualify if they meet the same conditions.
The lower earnings threshold of £125 per week, which previously blocked some low-paid workers, will end on April 6, 2026. From that date, all employees earning above the National Insurance lower earnings limit will receive sick pay from their first full day off.
How payments work—and what employers must track
SSP follows the same payment schedule as regular wages, with income tax and National Insurance deducted where applicable. Employers cannot pay less than the statutory minimum but may offer more generous terms under their contracts. Some companies, for instance, pay full wages for the first two weeks of illness before switching to SSP.
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Absences separated by fewer than eight weeks for the same reason count as a single “linked period.” Average earnings from the initial period determine future payments. If an employee works even part of a day, that day does not count as sick leave.
While no law requires employers to record SSP payments, keeping absence records helps resolve disputes over pay or eligibility. Statutory holiday entitlement still accrues during sick leave, and unused days may be carried over if illness prevented the employee from taking them.
SSP supports businesses by ensuring their employees take the proper time to recover as well as preventing illnesses spreading through the workplace. For small businesses, the rules can feel unpredictable, especially with the 2026 changes approaching.
When an employee returns to work, their pay returns to the normal rate immediately. SSP does not require a grace period or phased return, though some companies offer these as part of their own sick pay policies.
