Employer's Guide to Statutory Sick Pay

What is Statutory Sick Pay?

Statutory Sick Pay (SSP) is the legal minimum amount that employers must pay to eligible employees when they are off work due to illness. It is paid by the employer directly through payroll, not by the government. Unlike some other statutory payments, employers cannot reclaim SSP from HMRC. This means the cost sits entirely with your business, making it important to understand the rules and plan accordingly.

SSP exists to provide a basic safety net for workers who cannot attend work because of sickness. However, it is just the minimum. Many employers choose to offer enhanced company sick pay above this level, which we will cover later in this article.

Current SSP Rules (2026/27 Tax Year)

The Employment Rights Act 2025 changed SSP from 6 April 2026. These changes are part of a broader wave of employment law changes in 2026, and they apply to every sickness absence that starts on or after that date.

SSP is the lower of £123.25 per week or 80% of the employee's average weekly earnings, calculated over the previous 8 weeks. It is paid for up to 28 weeks in any single period of incapacity for work.

There are no waiting days. SSP is payable from the first qualifying day of sickness. The Period of Incapacity for Work is now just 1 day, so even a single day of sickness triggers an SSP entitlement.

There is no earnings threshold. The Lower Earnings Limit no longer applies to SSP, so every employee qualifies regardless of how much they earn. The government estimated this would bring around 1.3 million additional workers into eligibility, many of them part-time or low-paid.

For most employees on a standard wage, the £123.25 flat rate still applies. For low earners, 80% of their average weekly earnings may be lower than the flat rate, so they receive the 80% figure instead.

For absences of 7 calendar days or fewer, the employee can self-certify their sickness. From day 8 onwards, they must provide a fit note from a medical professional.

The government estimates these reforms cost employers around £450 million a year, roughly £15 per employee across the workforce.

What Changed on 6 April 2026

Before April 2026, SSP was a flat £118.75 per week, there were 3 waiting days before it became payable, the employee had to be off sick for at least 4 consecutive days, and only employees earning at least the Lower Earnings Limit (£125 per week in 2025/26) qualified.

One transitional rule still matters: employees whose absence began before 6 April 2026 stayed on the old flat rate for that absence. The new rules apply to absences that begin on or after that date.

Who Qualifies for SSP?

To be eligible for SSP, a person must be an employee (not self-employed or a contractor). They must be genuinely off sick or incapacitated. There is no minimum earnings requirement for absences starting on or after 6 April 2026. They must also notify their employer of their absence in line with the company's reporting procedures.

When SSP Is Not Payable

There are several situations where SSP does not apply. When SSP has been exhausted after 28 weeks. When the employee is outside the UK, unless they are in the EEA. During a trade dispute at the employee's workplace. When the employee is in legal custody.

If SSP is not payable, the employee may be able to claim Employment and Support Allowance (ESA) from the Department for Work and Pensions instead.

Fit Notes Explained

From day 8 of any sickness absence, the employee must provide a fit note (formally called a Statement of Fitness for Work). Fit notes can be issued by GPs, hospital doctors, nurses, occupational therapists, pharmacists, and physiotherapists.

A fit note will state one of two things. Either the employee is "not fit for work", meaning they should not return yet. Or they "may be fit for work" with recommended adjustments. These adjustments might include a phased return, altered hours, amended duties, or workplace adaptations.

As an employer, you are not legally obliged to provide the recommended adjustments. However, if you cannot accommodate them, the employee remains classified as "not fit for work" and SSP continues. It is always worth exploring what adjustments are feasible, as getting people back to work sooner benefits everyone.

Company Sick Pay

Many employers choose to offer enhanced sick pay above the statutory minimum. A typical arrangement might be full pay for a set number of weeks, followed by half pay, and then SSP only.

Your company sick pay can count towards your SSP obligations. For example, if you pay full pay for the first 4 weeks of absence, you do not need to pay SSP on top of that, because your company sick pay already exceeds the SSP rate.

Your absence management policy should clearly state what sick pay you offer, when it starts, how long it lasts, and what happens when it runs out. Ambiguity in this area causes confusion and disputes.

Practical Tips for Managing Sick Pay

Have a clear absence reporting policy. Employees should know exactly who to contact, by what time, and how (phone call, not text message, for example). A well-drafted absence management policy reduces confusion and ensures consistency.

Track absence accurately. Use HR software to record all sickness absence, trigger alerts for patterns, and generate reports. Manual tracking on spreadsheets is error-prone and time-consuming. For spotting frequent short absences early, the Bradford Factor calculator gives you a quick score and typical UK trigger levels.

Conduct return-to-work interviews. A brief, supportive conversation when the employee returns helps you understand the reason for absence, identify any workplace factors, and demonstrate that absence is monitored. It is one of the most effective tools for reducing short-term absence, and our guide to managing employee absence covers this process in more detail. During winter peaks when flu, norovirus and respiratory illness drive claim volumes up, our advice on protecting employees from the quad-demic covers vaccination, presenteeism and workplace hygiene.

Consider occupational health referrals. For long-term or recurring sickness, an occupational health assessment can provide medical insight into whether the employee is likely to return, what adjustments might help, and whether the condition qualifies as a disability under the Equality Act 2010.

Check your policies reflect the April 2026 rules. Any sickness policy or handbook written before then may still mention waiting days or the Lower Earnings Limit. Update it, budget for day-one SSP costs, and make sure managers and payroll apply the new calculation.

Getting Support

Managing sickness absence effectively requires clear policies, consistent processes, and a good understanding of the law. If you are unsure whether your current approach is compliant, or if you need help preparing for the April 2026 changes, we can help.

Our retained HR support service gives you access to expert advice whenever you need it. We can review and update your absence policies, set up tracking systems, and guide you through complex cases.

Book a free consultation to discuss your sick pay arrangements and make sure your business is ready for the changes ahead.