Section A: SSP Rate in 2026
Statutory Sick Pay is the legal baseline for sick pay in the UK, but for employers it is rarely just a payroll figure. SSP sits at the point where pay, absence management and legal risk meet. Errors tend to surface not because the rules are unknown, but because they are applied inconsistently or relied on too heavily as an administrative process rather than a legal one.
That distinction matters more from April 2026. Changes to when SSP starts, who qualifies and how it is calculated mean that liability arises earlier and applies more widely. Employers who continue to treat SSP as a back-office task risk avoidable cost and dispute.
In terms of what the SSP rate is, for 2025–26, the rate was £118.75 per week. From 6 April 2026, the SSP weekly rate is £123.25.
| Tax year | SSP weekly rate | Effective dates | Employer notes |
|---|---|---|---|
| 2025–2026 | £118.75 per week | 6 April 2025 to 5 April 2026 | Waiting days apply and SSP is usually payable from the fourth qualifying day, subject to eligibility rules in force during that period. |
| 2026–2027 | £123.25 per week | From 6 April 2026 | Day-one SSP applies and the earnings threshold is removed. SSP is payable at the lower of £123.25 or 80% of Average Weekly Earnings for lower-paid employees. |
1. What SSP is and the statutory framework
SSP is governed by statute and detailed regulations that leave employers with little discretion. The rules determine who qualifies, how SSP is calculated, how long it can be paid and when it is excluded. Employers fund SSP in full and administer it through payroll. There is no recovery mechanism and limited scope to correct mistakes once payment has been mishandled.
For SSP to arise, an employee must be incapable, due to sickness or injury, of carrying out the work they are employed to do. Under the current regime, SSP is linked to a period of incapacity for work, which is triggered after four consecutive days of sickness, including non-working days. Waiting days then delay payment further. These structural features have historically softened short-term cost exposure.
That position changes from 6 April 2026. SSP becomes payable from the first qualifying day of sickness. Waiting days fall away and a period of incapacity for work is established by a single qualifying day. For employers, that shifts SSP from a delayed obligation to an immediate one.
2. Who qualifies for SSP
Under the current rules, SSP eligibility depends on meeting a set of statutory conditions. These include employee status for payroll purposes, incapacity lasting at least four consecutive days and average weekly earnings at or above the Lower Earnings Limit during the statutory reference period.
From 6 April 2026, that framework widens. The Lower Earnings Limit no longer applies to SSP. Eligibility no longer turns on earnings level. Any employee who is absent due to sickness and meets reporting and evidence requirements can qualify. This brings a much broader section of the workforce into SSP entitlement, including part-time, casual and lower-paid staff who previously sat outside the system.
Sickness reporting rules continue to apply. Employers can delay SSP where notification procedures are not followed, but only until proper notice is given. Individuals who are genuinely self-employed remain outside SSP, and statutory payments such as Statutory Maternity Pay continue to override SSP for the same period.
Agency workers may qualify where they are treated as employees and work under the supervision and direction of the hirer. In those cases, contractual terms and payroll arrangements need to align with SSP treatment to avoid gaps or duplication.
3. SSP rate & calculations
SSP is paid at a fixed statutory weekly rate set for each tax year. For 2025–26, the rate was £118.75 per week. From 6 April 2026, the SSP weekly rate is £123.25. That figure represents the maximum amount payable. From that point, SSP is calculated as the lower of £123.25 or 80 per cent of the employee’s Average Weekly Earnings. Average Weekly Earnings continue to be assessed using the statutory eight-week reference period and only earnings subject to National Insurance are taken into account.
In practice, that means lower-paid employees may receive SSP below the flat rate. Employers need to understand this distinction, as it affects payroll accuracy and employee expectations.
For payroll purposes, the weekly SSP figure is converted into a daily rate based on qualifying days. Qualifying days are the days the employee normally works or is contractually expected to work. Applying the wrong qualifying day pattern is one of the most common causes of SSP error.
Employers cannot pay less than the statutory entitlement, but may enhance it through contractual sick pay, provided the SSP element is clearly identified and not duplicated.
4. When SSP starts and how long it lasts
Under the current rules, SSP starts only after the first three waiting days in a period of incapacity for work. Where periods of sickness occur within 56 days of each other, they are linked and waiting days do not need to be served again if already exhausted.
From 6 April 2026, waiting days are removed entirely. SSP becomes payable from the first qualifying day of sickness. A period of incapacity for work is established immediately. For employers, this accelerates liability and increases exposure to short, sporadic absence that previously fell below the SSP threshold.
For employers, this means SSP liability can arise from a single day’s absence, rather than being filtered out by waiting days as under the previous regime.
SSP remains capped at 28 weeks in any one period of sickness or series of linked periods. Starting earlier does not extend the overall entitlement. Once SSP is exhausted, employers need to shift focus to next steps, including contractual sick pay, benefit transitions and longer-term capability management.
DavidsonMorris Strategic Insight
Sickness absence affects every employer, which means the changes to Statutory Sick Pay from April 2026 will be felt across all sectors. Existing SSP processes and absence policies that relied on waiting days or earnings thresholds will no longer hold up under the post-April rules and will start to fail quickly once tested in practice.
SSP now demands immediate action. With no waiting days, entitlement arises from the first qualifying day of sickness, and delays in issuing SSP1 forms once SSP is not payable or ends are far more likely to trigger complaints. Employers who do not update payroll controls, manager guidance and SSP1 handling risk turning routine sickness absence into avoidable disputes.
Section B: SSP Eligibility and Employer Duties
SSP eligibility decisions are rarely neutral. For employers, they determine not only whether sick pay is due, but how absence is perceived, how managers respond and how defensible later decisions become. Most SSP disputes arise because eligibility is assessed informally or inconsistently, rather than because the law itself is unclear.
From April 2026, eligibility widens and payment starts earlier. That removes several historic gatekeepers and places greater weight on employer process, evidence handling and timing.
In effect, two of the main eligibility gatekeepers that previously limited SSP exposure are removed.
1. Qualifying conditions: earnings, sickness evidence and waiting days
Under the current regime, SSP entitlement depends on meeting all statutory conditions. These include average weekly earnings at or above the Lower Earnings Limit, sickness lasting at least four consecutive days and compliance with the employer’s reporting and evidence requirements.
The first three qualifying days of a period of incapacity for work are waiting days during which SSP is not payable. Where a further period of sickness begins within 56 days of a previous one, the periods are linked and waiting days do not need to be served again if they were already used. In practice, this often brings SSP entitlement forward more quickly than employers expect.
That structure changes from 6 April 2026. The Lower Earnings Limit no longer applies to SSP and waiting days are removed. SSP becomes payable from the first qualifying day of sickness and eligibility no longer turns on earnings level. Employers should expect SSP liability to arise earlier and across a broader range of roles, particularly among part-time and lower-paid staff.
2. Fit notes and verification requirements
Employers are entitled to require medical evidence, but the statutory framework limits how and when this can be done. Employees may self-certify for the first seven consecutive days of sickness. From day eight onwards, a fit note may be required.
Fit notes can be issued by a range of authorised healthcare professionals and may be provided digitally. A fit note may confirm that an employee is not fit for work or may be fit for work with adjustments. Where adjustments are suggested, employers should consider them carefully and document the reasoning where they are not adopted.
Where illness may amount to a disability, dismissing fit note recommendations without objective justification increases legal risk. SSP compliance alone does not protect against Equality Act exposure.
3. Employer obligations when refusing SSP
Where SSP is not payable, employers are required to issue an SSP1 explaining the statutory reason for refusal. The SSP1 should be issued within seven days of the decision, or within seven days of the sickness starting where non-entitlement is clear from the outset.
Where SSP entitlement ends because the 28-week limit is reached, the SSP1 must be issued on or before the beginning of the 23rd week of SSP. This timing allows the employee to apply for New Style Employment and Support Allowance without an avoidable gap in income.
From April 2026, SSP1 handling becomes more exposed. Day-one SSP and expanded eligibility increase the number of cases where SSP ends or is refused. Delays that were previously tolerated are more likely to trigger complaints, grievances or escalation. As such, under the April 2026 rules, late SSP1 issuance is more likely to escalate quickly into complaints or formal disputes rather than remaining a technical payroll issue.
4. Interaction with contractual sick pay
Many employers offer contractual sick pay alongside SSP. Where this applies, policies need to be clear about how the two interact. In most cases, contractual sick pay is inclusive of SSP, meaning the statutory element forms part of the overall payment.
Payroll systems must record the SSP component accurately to avoid duplication or underpayment. Where an employee does not qualify for SSP but remains entitled to contractual sick pay, payments must follow the contract strictly.
Employers should also ensure SSP is not paid during periods covered by Statutory Maternity Pay or Maternity Allowance, as those payments override SSP entitlement for the same period.
DavidsonMorris Strategic Insight
Prior to 6 April 2026, the SSP eligibility rules acted as a filter, as only certain categories of workers qualified. But, from 6 April 2026, the removal of the earnings threshold also removes that filter. As a result, the main source of complaints and confusion is likely to shift away from worker eligibility towards employer process. The pressure will be on how employers respond on day one of sickness, rather than whether SSP is payable at all.
Section C: Calculating and Paying SSP Correctly
SSP errors most often arise at the calculation stage. Not because the rate is unknown, but because qualifying days are unclear, earnings data is incomplete or payroll systems are not configured to reflect how SSP actually operates. From April 2026, those weaknesses become more costly, as entitlement starts earlier and applies to more employees.
For employers, accurate SSP calculation is not simply a compliance exercise. It underpins defensible absence management and limits the risk of underpayment disputes and HMRC intervention.
1. Determining qualifying days
Qualifying days are the days an employee normally works or is contractually expected to work. They determine both when SSP becomes payable and how the weekly rate is converted into a daily amount.
Employers should identify qualifying days by reference to the employment contract or an established working pattern. Where patterns are unclear, qualifying days can be agreed with the employee. If agreement cannot be reached, the statutory fall-back rule applies and all seven days of the week are treated as qualifying days. That default position significantly increases SSP exposure and usually reflects a documentation failure rather than a genuine working arrangement. Employers should treat unclear qualifying days as a documentation risk rather than a neutral ambiguity.
From April 2026, qualifying days take on greater significance. SSP becomes payable from the first qualifying day of sickness, which means any uncertainty around working patterns is more likely to result in immediate cost and dispute.
2. Applying the SSP rate and daily calculation
SSP is paid at a statutory weekly rate set for each tax year. For the 2025–26 tax year, the rate is £118.75 per week. From 6 April 2026, the rate increases to £123.25.
From April 2026, SSP is no longer always paid at the flat weekly rate. It is payable at the lower of £123.25 or 80 per cent of the employee’s Average Weekly Earnings. Average Weekly Earnings are calculated using the statutory eight-week reference period and only earnings subject to National Insurance are included.
This distinction is often missed in payroll setups and is a common source of SSP underpayment or challenge for lower-paid staff.
For payroll purposes, the applicable weekly amount is divided by the number of qualifying days to produce a daily rate. That daily rate is then multiplied by the number of payable sick days in the pay period. Employers should expect greater scrutiny of calculations for lower-paid employees, where the 80 per cent earnings cap applies and SSP may fall below the headline rate.
3. SSP for part-time and variable-hours workers
Part-time employees are entitled to SSP on the same basis as full-time employees. The difference lies in qualifying days, not the statutory rate itself.
For employees with variable hours or irregular working patterns, employers must calculate Average Weekly Earnings using the statutory eight-week reference period. Clear and accurate earnings records are essential. SSP is not calculated by reference to hours worked on a particular day, but by applying the statutory rate to qualifying days.
From April 2026, the removal of the earnings threshold means that more part-time and lower-paid workers qualify for SSP. For employers, that increases the importance of getting both earnings data and qualifying day patterns right from the outset.
4. Payroll administration, RTI and record-keeping
SSP must be processed through PAYE and reported to HMRC via Real Time Information. Payroll systems should be reviewed to ensure they apply the correct SSP rate, recognise qualifying days accurately and, from April 2026, apply the 80 per cent Average Weekly Earnings cap where relevant.
Employers are required to keep SSP records for at least three years. These records should include sickness dates, qualifying days, SSP payments made, medical evidence and SSP1 forms. In practice, these records often become critical evidence in grievance, capability or tribunal proceedings.
Medical information used for SSP purposes should be handled in line with UK GDPR. Employers should limit access, retain information securely and ensure data is not kept longer than necessary.
5. Overpayments, underpayments and corrections
SSP is a fixed statutory entitlement and is not pro-rated by hours worked. Where SSP has been underpaid, employers should correct the error promptly and issue amended payslips. Overpayments should be handled carefully and in accordance with lawful deduction rules to avoid further dispute.
Good communication and accurate documentation reduce the risk of escalation. Employers should also remember that statutory holiday entitlement continues to accrue during periods of sickness absence, including where SSP is paid.
DavidsonMorris Strategic Insight
SSP calculations are only as accurate as the information they are using. Sickness dates, earnings data and payroll system settings all need to be correct, and assumptions or guesswork avoided altogether. The pace of the April 2026 SSP regime leaves little room for error. With entitlement crystallising from day one of absence, mistakes that might previously have gone unnoticed will surface immediately.
Employers with part-time or variable-hours staff are particularly exposed. They should take steps now to ensure their payroll processes and systems are capable of applying the new SSP rules accurately from 6 April 2026.
Section D: Managing SSP in HR Practice
SSP rarely causes problems on its own. Issues arise when sick pay decisions bleed into absence management, capability processes or equality obligations without a clear framework holding them together. For employers, SSP is often the first formal step in a longer decision chain, and mistakes made early are difficult to unwind later.
From April 2026, that risk increases. SSP applies sooner, to more people, and for some employees at a different rate. That places greater pressure on policies, manager training and record-keeping.
1. SSP within sickness absence management policies
A well-drafted sickness absence policy is the primary control for SSP risk. Policies should set out how sickness is reported, what evidence is required, how SSP interacts with contractual sick pay and how repeated short-term absence is managed.
From April 2026, policies and manager guidance need to reflect that SSP starts from the first qualifying day and no longer depends on earnings level. References to waiting days or earnings thresholds that remain in circulation are a common source of confusion and inconsistent treatment.
Where policy wording does not reflect the April 2026 rules, employers should expect inconsistency in manager decisions and greater exposure to challenge.
Absence triggers require careful handling. Where illness may amount to a disability, applying trigger points mechanically can expose the organisation to discrimination risk. Managers should understand when discretion is required and when cases need to be escalated for HR input rather than handled informally.
2. Record-keeping duties for SSP
Employers are required to retain SSP records for at least three years. These records should include sickness dates, qualifying days, SSP payments, medical evidence and any SSP1 forms issued.
In practice, these records do more than satisfy HMRC. They often become central evidence in grievances, capability processes and tribunal claims. From April 2026, as SSP entitlement arises earlier and across a wider group of employees, gaps or inconsistencies in records are more likely to be exposed.
Medical information used for SSP purposes must be processed lawfully under UK GDPR. Employers should restrict access, store information securely and ensure retention periods are proportionate.
3. Managing long-term absence and SSP beyond 28 weeks
SSP remains capped at 28 weeks in any one period of sickness or series of linked periods. Once that limit is reached, SSP entitlement ends.
Where SSP is not payable or is about to end, employers are required to issue an SSP1. Where entitlement will end due to the 28-week limit, the SSP1 must be issued on or before the beginning of the 23rd week of SSP to allow the employee time to apply for New Style Employment and Support Allowance.
From April 2026, SSP1 handling carries greater exposure. Day-one SSP and expanded eligibility increase the number of cases reaching the end of entitlement. Late SSP1 issuance is more likely to result in income gaps, complaints and escalation, particularly among lower-paid staff newly brought into SSP.
4. Equality Act considerations and disability-related sickness
Where an employee’s illness amounts to a disability, employers are required to consider reasonable adjustments to support continued employment. Adjustments may include changes to hours, duties, working arrangements or temporary redeployment.
Correct SSP payment does not remove Equality Act obligations. Employers that focus narrowly on statutory compliance without addressing adjustment duties expose themselves to discrimination risk. Decisions taken around absence triggers, SSP cessation or capability dismissal should be supported by medical evidence and a clear audit trail.
Managers should be trained to recognise when sickness absence may engage disability protections and to pause before taking action that could have wider legal consequences.
DavidsonMorris Strategic Insight
From 6 April 2026, earlier SSP entitlement means earlier scrutiny. Late SSP1s or outdated absence policies are more likely to be used as evidence of poor sickness management. Employers who align payroll, absence processes and manager behaviour early are far better placed to contain risk before absence patterns turn into disputes.
Section E: Summary
Statutory Sick Pay is a fixed legal obligation, but the way it operates in practice has changed materially. From April 2026, SSP starts earlier, applies more widely and, for some employees, is calculated differently. For employers, the risk is no longer limited to getting the weekly rate wrong. Eligibility decisions, qualifying days, SSP1 timing and record-keeping now carry greater weight, particularly where absence is short term, repeated or linked to disability. Employers that update payroll systems, align absence policies and train managers on the new rules are far better placed to manage cost, avoid disputes and maintain a defensible approach to sickness absence.
Ultimately, the employers most exposed under the new SSP rate rules are those relying on informal absence handling rather than documented payroll and policy controls.
Section F: Need Assistance?
If you need advice on how the SSP rate changes from April 2026 affect your payroll, absence policies or wider employment risk, our lawyers can help. We advise employers on SSP eligibility, calculation errors, SSP1 obligations and managing sickness absence lawfully and proportionately. To discuss your position and get clear, practical guidance, call us to arrange a confidential telephone consultation.
Section G: FAQs
What is the current SSP rate?
The Statutory Sick Pay rate for the 2025–26 tax year is £118.75 per week. This rate applies until 5 April 2026 and is used to calculate the daily SSP amount based on an employee’s qualifying days.
What will the SSP rate be from April 2026?
From 6 April 2026, the SSP rate increases to £123.25 per week. This is the maximum weekly amount payable. From that date, SSP is paid at the lower of £123.25 or 80 per cent of the employee’s Average Weekly Earnings.
Does SSP still depend on earnings from April 2026?
No. From 6 April 2026, the Lower Earnings Limit no longer applies to SSP. Employees qualify for SSP regardless of earnings level, although the earnings threshold continues to apply to most other statutory payments.
When does SSP start to be paid?
Under the current rules, SSP is payable from the fourth qualifying day of sickness, with the first three days treated as waiting days. From 6 April 2026, waiting days are removed and SSP is payable from the first qualifying day of sickness.
How long can SSP be paid for?
SSP can be paid for a maximum of 28 weeks in any one period of sickness or series of linked periods. This limit does not change from April 2026, even though SSP will start earlier.
How is SSP calculated for part-time or variable-hours workers?
SSP is not based on hours worked. The statutory weekly rate is converted into a daily rate using qualifying days. From April 2026, SSP may be capped at 80 per cent of Average Weekly Earnings, which is calculated using the statutory eight-week reference period.
What happens when SSP entitlement ends?
When SSP ends, either because the employee does not qualify or because the 28-week limit has been reached, the employer must issue an SSP1 form. This allows the employee to apply for New Style Employment and Support Allowance.
Can an employee be dismissed while receiving SSP?
Dismissal is possible, but employers must follow a fair capability process, consider medical evidence and assess reasonable adjustments where applicable. Dismissing an employee for asserting a right to SSP would be unlawful.
Section H: Glossary
| Term | Definition |
| Statutory Sick Pay (SSP) | The statutory minimum sick pay employers pay to eligible employees who are absent from work due to sickness. |
| SSP rate | The statutory weekly amount used to calculate SSP. It is £118.75 per week for 2025–26 and rises to £123.25 per week from 6 April 2026, subject to the 80 per cent Average Weekly Earnings cap from that date. |
| Average Weekly Earnings (AWE) | The statutory earnings figure used in SSP calculations. It is based on earnings subject to National Insurance over the eight-week reference period before the relevant date. |
| Qualifying days | The days an employee normally works or is contractually expected to work. SSP is payable only for qualifying days and the weekly SSP rate is converted into a daily rate using the number of qualifying days. |
| Period of Incapacity for Work (PIW) | A statutory period of sickness used to assess SSP entitlement. Under the current rules, a PIW is at least four consecutive days of sickness, including non-working days. From 6 April 2026, a PIW is treated as one qualifying day. |
| Waiting days | The first three qualifying days of sickness in a PIW that are unpaid under the current rules. Waiting days are removed from 6 April 2026 and SSP becomes payable from day one. |
| Linked periods of sickness | Separate sickness absences treated as one continuous period where they occur within 56 days of each other. Linking affects waiting days under the current rules and applies to the 28-week SSP maximum. |
| Lower Earnings Limit (LEL) | An earnings threshold used for National Insurance and many statutory payments. The LEL no longer applies to SSP from 6 April 2026, although it continues to apply to most other statutory payments. |
| Fit note | Medical evidence issued by an authorised healthcare professional stating an employee is not fit for work or may be fit for work with adjustments. Fit notes can be digital and can be issued by GPs, nurses, occupational therapists, pharmacists and physiotherapists. |
| SSP1 | The statutory form an employer issues when SSP is not payable or when SSP entitlement ends. It supports an employee in applying for New Style Employment and Support Allowance. |
| Contractual sick pay | Employer-provided sick pay that enhances SSP. Policies should explain whether contractual sick pay is inclusive of SSP and payroll should avoid duplication of the SSP element. |
| Real Time Information (RTI) | HMRC’s PAYE reporting system. SSP payments are processed through payroll and reported to HMRC via RTI. |
| New Style Employment and Support Allowance (ESA) | A state benefit an employee may claim when SSP is not payable or after SSP entitlement ends, subject to eligibility rules. |
Section I: Additional Resources & Links
| Resource | What it covers | Link |
|---|---|---|
| GOV.UK – Statutory Sick Pay overview | Official government guidance on SSP entitlement, rates, eligibility and employer obligations | https://www.gov.uk/statutory-sick-pay |
| GOV.UK – Calculate Statutory Sick Pay | HMRC’s SSP calculator to help employers work out SSP payments and qualifying days | https://www.gov.uk/calculate-statutory-sick-pay |
| GOV.UK – Employer guide to SSP records | Record-keeping requirements for SSP, including evidence retention and HMRC compliance | https://www.gov.uk/employers-sick-pay/keeping-records |
| ACAS – Managing sickness absence | Practical guidance for employers on handling short-term and long-term sickness absence | https://www.acas.org.uk/managing-sickness-absence |
| ACAS – Fit notes and medical evidence | Guidance on fit notes, self-certification and employer responsibilities | https://www.acas.org.uk/fit-notes |
| GOV.UK – Employment and Support Allowance | Information on New Style ESA for employees whose SSP has ended or is not payable | https://www.gov.uk/employment-support-allowance |
