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 (2025/26 Tax Year)
For the current tax year, the key figures and rules are as follows.
The SSP rate is £118.75 per week, effective from 6 April 2025. It is paid for up to 28 weeks in any single period of incapacity for work.
There are 3 waiting days before SSP becomes payable. These are the first 3 qualifying days of absence, where qualifying days are the days the employee would normally work. No SSP is paid during this waiting period.
To qualify, the employee must earn at least £123 per week on average. This is known as the Lower Earnings Limit (LEL). Employees who earn below this threshold are not entitled to SSP.
The employee must be off sick for at least 4 consecutive calendar days (including weekends and non-working days) before SSP kicks in. A shorter absence does not trigger SSP at all.
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 April 2026 Reforms
The Employment Rights Act 2025 introduces significant changes to SSP from 6 April 2026. These are part of a broader wave of employment law changes taking effect in 2026, and every employer needs to prepare.
Waiting days are removed. SSP will be payable from day one of sickness absence. The Period of Incapacity for Work drops from 4 days to just 1 day. This means even a single day of sickness will trigger an SSP entitlement.
The Lower Earnings Limit is abolished. All employees will be eligible for SSP regardless of how much they earn. The government estimates this will bring approximately 1.3 million additional workers into eligibility, many of them part-time or low-paid.
A new calculation method applies. SSP will be the lower of two amounts: 80% of the employee's Average Weekly Earnings (calculated over the previous 8 weeks), or the flat weekly rate (expected to be around £123.25 per week, subject to Parliamentary approval).
For most employees earning a standard wage, the flat rate will continue to apply as it does now. However, for low earners, 80% of their average weekly earnings may work out at less than the flat rate. This means some employees will receive less per week than the current headline figure.
The government estimates these reforms will cost employers around £450 million annually, which works out at roughly £15 per employee across the workforce.
One important transitional rule: employees who are already on SSP before 6 April 2026 will continue to receive the existing flat rate for their current absence. The new calculation only applies 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. They must earn at or above the Lower Earnings Limit (until April 2026, when this requirement is removed). 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. During the first 3 waiting days of absence (until April 2026). When the employee earns below the LEL (until April 2026). 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.
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.
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.
Prepare now for April 2026. Review your budgets to account for day-one SSP costs. Update your policies and employee handbooks. Communicate the changes to your team so they understand the new rules.
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.
