What Is Statutory Sick Pay (SSP)?
Statutory Sick Pay (SSP) is the legal minimum amount that UK employers must pay eligible employees who are unable to work because of illness. From 6 April 2026, SSP is payable from the first day of sickness absence at a rate of £123.25 per week or 80% of the employee's average weekly earnings, whichever is lower.
SSP is a statutory obligation, not a discretionary benefit. It applies to employers of all sizes and across all sectors. The employer funds SSP directly through their payroll. There is no mechanism for employers to reclaim SSP costs from the government.
The framework for SSP is set out in the Social Security Contributions and Benefits Act 1992 and was substantially reformed by the Employment Rights Act 2025, with key changes taking effect on 6 April 2026. These reforms represent the most significant overhaul of SSP since the system was introduced in 1983.
This guide covers the current SSP rules as they apply from April 2026 onwards, including eligibility, rates, employer obligations, and the enforcement powers of the new Fair Work Agency.
What Changed on 6 April 2026
The Employment Rights Act 2025 introduced three fundamental changes to how SSP works. All three took effect on 6 April 2026 and apply to every employer in the UK.
Day-One Entitlement
SSP is now payable from the first qualifying day of sickness absence. The previous three unpaid "waiting days" have been abolished. Employees no longer need to be absent for four consecutive days before SSP begins.
Lower Earnings Limit Removed
The previous requirement to earn at least £125 per week (before tax) has been scrapped. All employees are now eligible for SSP regardless of their income level, including part-time workers, zero-hours contract workers, and lower earners.
Earnings-Based Rate
SSP is now calculated as the lower of 80% of the employee's average weekly earnings or the flat statutory rate of £123.25 per week. This replaces the previous flat-rate-only system and means some lower earners may receive less than the flat rate.
Transitional Protection
Employees who were already off sick before 6 April 2026 may have transitional protection. If they were receiving SSP at the flat rate before the change, they continue at that rate for their current absence (up to 28 weeks). The new 80% calculation only applies if they return to work and then begin a new period of sickness. Full details are set out in HMRC's transitional arrangements guidance on GOV.UK.
The government estimates that these combined changes will increase employer SSP costs by approximately £450 million per year across the UK economy, according to ACAS.
Who Is Eligible for SSP
Every employee who meets the following criteria is entitled to SSP from the first day they are unable to work because of illness. There is no minimum length of service and no minimum earnings threshold from 6 April 2026 onwards.
- Has an employment contract and is classed as employed for tax purposes. This includes anyone whose employer deducts tax through PAYE, such as permanent employees, fixed-term contract workers, and agency workers. Workers who pay their own tax through self-assessment (including most gig economy workers) are not eligible.
- Has done some work under their contract. Even a single shift completed is sufficient. An employee who falls ill before their first day of work does not qualify.
- Has been too ill to work for at least one full qualifying day. The employee must be incapacitated for the work they are employed to do. A qualifying day is any day they would normally be required to work.
- Has notified their employer of their absence. Notification must be given within any deadline the employer has set in their absence policy, or within 7 calendar days if the employer has not set a specific deadline.
Who Does Not Qualify
Self-employed workers who pay their own tax through self-assessment are not eligible for SSP. This includes many workers in the gig economy who are classified as self-employed rather than employees.
Employees who are already receiving Statutory Maternity Pay or Maternity Allowance cannot receive SSP at the same time. Workers who have already received 28 weeks of SSP in a single period of sickness (or linked periods) have exhausted their entitlement.
Scenario: Zero-Hours Contract Worker
Aisha works on a zero-hours contract at a warehouse and is paid through PAYE. She has completed several shifts and earns an average of £85 per week. Before April 2026, Aisha would not have qualified for SSP because her earnings fell below the lower earnings limit of £125 per week. Under the new rules, she is entitled to SSP from day one of her sickness. Her SSP is calculated at 80% of her average weekly earnings, which is £68 per week.
How Much Is SSP and How It Is Calculated
The SSP rate for the 2026/27 tax year is £123.25 per week or 80% of the employee's average weekly earnings (AWE), whichever is lower. This dual-rate system was introduced by the Employment Rights Act 2025 to provide a fairer calculation for lower earners.
Calculating the Daily Rate
SSP is paid only for qualifying days, which are the days the employee would normally have been required to work. The daily rate is calculated by dividing the weekly SSP amount by the number of qualifying days in the employee's normal working week.
| Working Pattern | Weekly SSP | Daily SSP Rate |
|---|---|---|
| 5 days per week (Mon to Fri) | £123.25 | £24.65 |
| 4 days per week | £123.25 | £30.81 |
| 3 days per week | £123.25 | £41.08 |
| 6 days per week | £123.25 | £20.54 |
Average Weekly Earnings (AWE)
AWE is calculated based on the employee's earnings over the 8 weeks immediately before the start of their sickness absence. For employees paid monthly, this is typically calculated using the last two monthly payslips.
If 80% of the employee's AWE is lower than the flat statutory rate of £123.25, the employee receives the lower figure. For most employees earning above approximately £154 per week, this makes no practical difference. The 80% rate primarily affects workers earning less than this threshold.
Scenario: Lower Earner SSP Calculation
Ravi works part-time and earns an average of £110 per week. His SSP entitlement is calculated at 80% of £110, which is £88 per week. This is lower than the flat rate of £123.25, so Ravi receives £88 per week in SSP. If Ravi works 3 days per week, his daily SSP rate is £88 divided by 3, which is £29.33 per day.
Maximum Duration
SSP is payable for up to 28 weeks in any single period of sickness or across linked periods of sickness. Periods of sickness that are 8 weeks (56 days) or less apart are treated as linked for the purpose of the 28-week limit.
SSP vs Contractual Sick Pay
Many employers offer contractual (also called occupational) sick pay that is more generous than the statutory minimum. The comparison below sets out the key differences employers should understand.
| Feature | Statutory Sick Pay (SSP) | Contractual Sick Pay |
|---|---|---|
| Who sets the rate | Government (reviewed annually) | Employer (written in contract or policy) |
| Minimum amount | £123.25/week or 80% of AWE | Must be at least the SSP rate |
| When payment starts | First qualifying day of absence | Varies by employer (often day one) |
| Maximum duration | 28 weeks | Varies by employer (commonly 3 to 6 months) |
| Eligibility | All employees (contract, done some work, PAYE) | Per contract terms (may include probation exclusions) |
| Can employer reclaim costs? | No | N/A (employer's own scheme) |
| Payable during notice period | Yes, if eligibility criteria are met | Per contract terms |
| Legal framework | Social Security Contributions and Benefits Act 1992, Employment Rights Act 2025 | Employment contract and company policy |
Employers who already offer contractual sick pay from day one at a rate equal to or above the SSP rate may see minimal cost impact from the April 2026 changes. Employers who previously relied on SSP only, with three unpaid waiting days and earnings thresholds, are likely to see the largest increase in costs.
Employer Obligations
UK employment law places specific responsibilities on employers when an employee reports a sickness absence. Failure to meet these obligations can result in complaints to HMRC, enforcement action by the Fair Work Agency, and employment tribunal claims.
Step-by-Step: Managing an SSP Claim
- Confirm the employee is eligible. Check that they have an employment contract, are classed as employed for tax purposes, have done some work under their contract, and have notified you of their absence within the required timeframe.
- Identify qualifying days. Determine which days the employee would normally be required to work. These are the days for which SSP is payable. If the employee has no regular pattern, agree qualifying days with them.
- Calculate the SSP rate. Work out 80% of the employee's average weekly earnings based on the 8 weeks before their absence. Compare this to the flat rate of £123.25. Pay whichever is lower, divided by the number of qualifying days.
- Pay SSP through payroll. SSP is paid on the employee's normal pay day, subject to tax and National Insurance deductions. It must appear on the employee's payslip.
- Request medical evidence if needed. For absences of 7 calendar days or less, employers may accept self-certification. For absences exceeding 7 days, employers may ask for a fit note (Statement of Fitness for Work) from a registered healthcare professional.
- Issue form SSP1 when required. If SSP is ending unexpectedly, issue SSP1 within 7 days of SSP ending. If SSP is expected to end before the sickness does, issue SSP1 on or before the beginning of the 23rd week. If the employee does not qualify for SSP at all, issue SSP1 within 7 days of their first day off sick.
Record-Keeping
Employers must keep records of all SSP payments made, including start and end dates of sickness absence, qualifying days, and amounts paid. HMRC may request these records during a compliance check. Medical information collected for SSP purposes must be handled in line with UK GDPR, with access restricted and retention limited to what is necessary.
Fit Notes and SSP: When Medical Evidence Is Needed
A fit note is the standard form of medical evidence for sickness absence in the UK. Officially called the Statement of Fitness for Work (Med3 form), it is issued by a registered healthcare professional and sets out whether the employee is "not fit for work" or "may be fit for work" with adjustments.
Self-Certification (Days 1 to 7)
For the first 7 calendar days of sickness absence, employees can self-certify their illness. This means they notify their employer of the reason for their absence without needing a doctor's note. Some employers ask employees to complete a self-certification form (SC2) on their return, although this is not a legal requirement.
Fit Note Required (Day 8 Onwards)
If sickness absence continues beyond 7 consecutive calendar days (including non-working days such as weekends), the employer can require the employee to provide a fit note from a healthcare professional before continuing to pay SSP. A fit note can only be required after more than 7 calendar days of sickness. SSP cannot be withheld simply because a fit note is late.
Fit notes can be issued by GPs, hospital doctors, nurses, occupational therapists, physiotherapists, and pharmacists. NHS fit notes are free of charge when the employee has been off sick for more than 7 days. If the employer requests medical evidence during the first 7 days, the healthcare professional may charge a fee, as this falls outside standard NHS provision.
Private Medical Certificates and SSP
Employers may accept appropriate private medical evidence for absence documentation and SSP purposes, although the statutory fit note rules still apply. Private certificates issued by GMC-registered doctors can provide medical evidence where an NHS fit note is not yet available, where the employee cannot get a timely GP appointment, or where medical evidence is needed during the first 7 days of absence.
MedicalCert provides certificates reviewed and signed by GMC-registered doctors, typically delivered same day or by 9AM the next morning.
Get a Sick Note for Your Employee
What the Fit Note Tells the Employer
A fit note provides the employer with specific information: the medical condition affecting the employee's fitness for work, the period of the assessment, and whether the healthcare professional recommends adjustments such as altered hours, amended duties, or a phased return. Employers should treat the fit note as expert medical evidence and respond to its recommendations appropriately, particularly where the Equality Act 2010 duty to make reasonable adjustments may apply.
When SSP Ends and What Happens Next
SSP stops being payable when one of the following occurs: the employee returns to work, 28 weeks of SSP have been paid, or the employee's employment contract ends.
The SSP1 Form
Form SSP1 confirms that SSP has ended or is not payable, and allows the employee to claim state benefits such as Employment and Support Allowance (ESA) or Universal Credit. Employers must issue SSP1 in the following situations:
- If SSP is ending unexpectedly, issue SSP1 within 7 days of SSP ending.
- If SSP is expected to end before the sickness does (approaching the 28-week limit), issue SSP1 on or before the beginning of the 23rd week.
- If the employee does not qualify for SSP at all, issue SSP1 within 7 days of their first day off sick.
Linked Periods of Sickness
If an employee returns to work and then falls ill again within 8 weeks (56 days), the second absence is treated as a linked period. In a linked period, the 28-week SSP clock continues from where it left off rather than resetting. The employer uses the AWE from the initial period of sickness for the linked absence.
Scenario: Linked Periods
Tom is off sick for 10 weeks, returns to work for 5 weeks, and then falls ill again. Because the gap between his two absences is less than 8 weeks, the second absence is linked to the first. Tom has already used 10 weeks of his 28-week SSP entitlement, so he has 18 weeks remaining. The employer does not need to recalculate AWE for the second absence.
After SSP Ends
If the employee is still too ill to work after 28 weeks of SSP, they may be eligible for state benefits. The employer's responsibility at this stage is to issue form SSP1 promptly and, where appropriate, to consider whether a return-to-work plan or reasonable adjustments under the Equality Act 2010 could support the employee's eventual return.
Fair Work Agency: SSP Enforcement from April 2026
The Employment Rights Act 2025 established the Fair Work Agency (FWA), a new government body with enforcement powers over SSP compliance. The FWA launched on 7 April 2026 and takes over SSP enforcement responsibilities that were previously handled by HMRC.
The Fair Work Agency has the power to investigate complaints from employees who believe their employer has failed to pay SSP correctly. Employers found to be non-compliant face penalties and enforcement action. The creation of the FWA signals a more active approach to SSP enforcement than the previous HMRC-led system, according to guidance published by ACAS.
Practical Implication for Employers
Day-one SSP entitlement and the removal of earnings thresholds mean there is now very little room for employer error. Incorrect calculations, missed payments, or failure to issue SSP1 forms are more likely to trigger complaints and enforcement action than under the previous system. Employers should ensure their payroll processes are accurate and that SSP is paid correctly from the first day of absence.
Common Employer Scenarios
Employee Calls in Sick on Their First Week
A new employee who has an employment contract, has completed at least one shift, and is paid through PAYE is entitled to SSP from day one of their sickness absence. There is no minimum length of service required. If the employee has not yet been paid, the employer should use the employee's contracted rate or expected earnings to calculate 80% of AWE.
Employee on a Phased Return Falls Ill Again
An employee returning on reduced hours after a period of illness is entitled to SSP for each qualifying day they are absent due to sickness during the phased return, even if they are attending work on other days. Under the pre-April 2026 rules, the pattern of part-time attendance would often break the consecutive day requirement. The removal of waiting days means SSP is now payable on a day-by-day basis during phased returns.
Employer Suspects Absence Is Not Genuine
Employers are entitled to ask for evidence of sickness. For absences of 7 days or less, self-certification is sufficient. For longer absences, a fit note provides the medical evidence. If an employer has reasonable grounds to doubt the validity of a fit note, they can request an occupational health assessment. However, overriding a fit note without strong justification carries significant legal risk, including potential claims for unfair dismissal or disability discrimination under the Equality Act 2010.
Employee's Contract Ends During Sickness
SSP entitlement ceases when the employment contract ends. However, employers must ensure that any dismissal during sickness absence follows a fair process. Dismissing an employee solely because they are receiving SSP could give rise to an unfair dismissal claim. Employers should take legal advice before ending employment during a period of sickness absence.
Frequently Asked Questions About Statutory Sick Pay
SSP for the 2026/27 tax year is £123.25 per week or 80% of the employee's average weekly earnings, whichever is lower. The daily rate depends on how many qualifying days the employee normally works. For a 5-day worker, the daily rate is £24.65.
Yes. From 6 April 2026, SSP is payable from the first qualifying day of sickness absence. The previous three unpaid waiting days have been abolished under the Employment Rights Act 2025. This applies to all new sickness absences starting on or after 6 April 2026.
No. SSP is a statutory entitlement, not discretionary. If an employee meets the eligibility criteria, the employer must pay SSP. Refusal to pay SSP when it is due can result in the employee raising a complaint with HMRC or the Fair Work Agency, which launched on 7 April 2026 with enforcement powers. If the employee does not qualify, the employer must issue form SSP1 with written reasons within 7 days of their first day off sick.
No. There is no current provision for employers to reclaim SSP costs. The employer bears the full cost of SSP payments. This has been the case since the SSP Percentage Threshold Scheme was abolished in 2014. The temporary Covid-19 SSP Rebate Scheme has also ended.
Yes. From 6 April 2026, all employees classed as employed for tax purposes are eligible for SSP regardless of their earnings level. The previous lower earnings limit of £125 per week has been removed. Part-time workers, zero-hours contract workers, and casual workers who have an employment contract and have done some work for their employer all qualify.
SSP is payable for up to 28 weeks in a single period of sickness or across linked periods. Periods of sickness that are 8 weeks or less apart are linked, and the 28-week clock continues from where it left off. When SSP is expected to end before the sickness does, the employer should issue form SSP1 on or before the beginning of the 23rd week so the employee can apply for state benefits.
Not for the first 7 calendar days. Employees can self-certify their illness for absences of 7 days or less. For absences exceeding 7 consecutive calendar days, employers may request a fit note (Statement of Fitness for Work) from a registered healthcare professional. Employers may also accept appropriate private medical evidence, though the statutory fit note rules still apply and SSP cannot be withheld simply because a fit note is late.
The Fair Work Agency is a new enforcement body established by the Employment Rights Act 2025. It launched on 7 April 2026 and has taken over responsibility for state enforcement of SSP from HMRC. The FWA can investigate complaints from employees about unpaid or incorrectly calculated SSP, and employers found to be non-compliant face penalties. Employers should ensure their payroll systems are accurately calculating SSP under the new rules.
When 28 weeks of SSP have been paid, the employer must issue form SSP1 to the employee. This form allows the employee to apply for government benefits such as Employment and Support Allowance (ESA) or Universal Credit. The employer should issue SSP1 on or before the beginning of the 23rd week if the employee is still off sick, or within 7 days if SSP ends unexpectedly. Statutory annual leave continues to accrue during sickness absence regardless of SSP status.
Yes. SSP is treated as earnings and is subject to income tax and National Insurance contributions. Employers must deduct tax and NI from SSP payments through the normal payroll process. SSP should appear as a separate item on the employee's payslip.
