UK Statutory Sick Pay (SSP) 2026: Eligibility, Amount & Rules

Section A: What is Statutory Sick Pay?

Statutory Sick Pay is the legal minimum sick pay that UK employers are required to provide when an employee is unable to work due to illness. It operates as a statutory baseline rather than a discretionary benefit and applies regardless of sector or workforce size. For employers, SSP is not just a payroll issue. It sits alongside absence management, record-keeping duties and wider employment law risk, including unlawful deduction from wages, discrimination and unfair dismissal risks.

The SSP framework remained largely unchanged for many years before significant reforms took effect on 6 April 2026.

The rules governing when SSP starts, who qualifies and how it is calculated have been amended in ways that materially affect employer exposure. Employers should ensure absence policies, payroll systems and manager guidance reflect the current rules.

1. Overview of Statutory Sick Pay in the UK

Statutory Sick Pay forms part of the UK’s wider statutory welfare framework and is governed by legislation rather than contract. It is designed to provide a minimum level of income during periods of sickness absence, with employers bearing the full cost and responsibility for administration.

SSP is paid at the statutory weekly rate unless the employee’s average weekly earnings produce a lower entitlement under the post-April 2026 calculation.

SSP is paid at a statutory weekly rate set by the government and normally reviewed each April. For the 2026-2027 tax year, the SSP rate is £123.25 per week. SSP is payable only for qualifying days and remains subject to the statutory rules on linked periods of incapacity for work.

Employers are responsible for paying SSP directly through payroll. SSP is treated as earnings for PAYE purposes and subject to Income Tax and Class 1 National Insurance contributions where applicable. There is no general mechanism for reclaiming SSP from the government and limited scope to correct errors once underpayments or delays have occurred.

2. SSP Rules 2026

Since 6 April 2026, SSP now becomes payable from the first qualifying day of sickness. SSP entitlement arises immediately, including for short absences that would previously have fallen below the SSP threshold.

The earnings threshold for SSP has also been removed. Eligibility no longer depends on whether an employee earns above the Lower Earnings Limit. Eligible employees are no longer excluded from SSP because of low earnings, provided the remaining statutory conditions are met. This significantly expands coverage, particularly for part-time, casual and lower-paid workers.

The SSP rate is now £123.25 per week. SSP is calculated as the lower of £123.25 or 80 per cent of the employee’s Average Weekly Earnings, assessed over the relevant period using earnings subject to National Insurance.

Where 80% of Average Weekly Earnings exceeds the statutory weekly maximum, the statutory weekly rate applies.

The April 2026 changes effectively moved SSP from a delayed, filtered entitlement to an immediate and broader obligation. For employers, that altered both cost exposure and the margin for procedural error.

3. SSP and contractual sick pay

SSP represents the minimum level of sick pay required by law. Many employers offer enhanced sick pay through contractual sick pay schemes, which may provide full or partial salary for a defined period.

Where contractual sick pay applies, employers need to be clear how it interacts with SSP. In most cases, contractual sick pay is inclusive of SSP, meaning the statutory amount forms part of the total payment rather than being paid in addition. Employers cannot pay less than SSP to an eligible employee, but they can choose to pay more under their own arrangements.

Policies and contracts should also make clear whether the first days of sickness absence are paid or unpaid, particularly in light of the removal of SSP waiting days from April 2026.

Section B: Eligibility criteria for Statutory Sick Pay

Eligibility depends on satisfying the statutory conditions. The April 2026 reforms widened eligibility by removing the Lower Earnings Limit and abolishing waiting days.

Employers therefore need to understand both the current eligibility framework and how it will operate once the new rules take effect, as most disputes arise from assumptions carried over from the old regime.

1. Who qualifies for SSP

From 6 April 2026, the eligibility framework is simplified but significantly widened.

The Lower Earnings Limit no longer applies to SSP. Eligibility is no longer restricted by the Lower Earnings Limit, so eligible employees are not excluded from SSP because of low earnings, provided they are an employee for SSP purposes, are incapable of work because of illness, satisfy the notification requirements and have a qualifying period of incapacity.

SSP is payable from the first qualifying day of a qualifying sickness absence following the removal of waiting days.

In practice, this removes two of the main filters that previously limited SSP exposure. Employers should expect SSP entitlement to arise earlier and across a broader range of roles, particularly among part-time, casual and lower-paid staff.

2. Notification requirement

Sickness notification rules continue to apply post-April 2026.

Employees are expected to notify their employer of sickness absence within the time required by the employer’s sickness reporting procedure or, where none exists, within seven days.

SSP can be delayed where notification requirements are not met, but only until proper notice is provided.

3. Who does not qualify for SSP

Individuals who are genuinely self-employed cannot receive SSP. Workers paid through PAYE may qualify even where they work irregular hours or describe themselves as casual workers.

Agency workers can qualify for SSP where they satisfy the statutory conditions and are treated as employees for SSP purposes. Responsibility for paying SSP generally falls on the organisation operating PAYE, although liability depends on the contractual arrangements and employment status.

Employees receiving certain other statutory payments, such as Statutory Maternity Pay, cannot receive Statutory Sick Pay for the same period because those statutory payments take precedence.

4. Zero-hours workers, casual staff and directors

The removal of the Lower Earnings Limit from Statutory Sick Pay has significantly widened eligibility, but it has not created an automatic entitlement for every worker.

Employees working part time, on zero-hours contracts or under other casual arrangements may now qualify for SSP provided they satisfy the remaining statutory conditions. Employers should avoid assuming that irregular hours or fluctuating earnings prevent entitlement. Instead, eligibility should be assessed by reference to employment status, the existence of a qualifying sickness absence and the employee’s average weekly earnings for SSP calculation purposes.

Company directors may also qualify for SSP where they are treated as employees for PAYE purposes and meet the statutory conditions. The same rules on sickness absence, qualifying days and maximum entitlement apply, although calculating average weekly earnings may be more complicated where remuneration consists of irregular salary payments. Directors paid annually or irregularly may require particular care when calculating Average Weekly Earnings.

Where working arrangements are atypical, employers should document how SSP entitlement has been assessed and retain sufficient payroll records to support the calculation if questioned later.

Section C: Employer responsibilities for paying Statutory Sick Pay

For employers, SSP is not optional or discretionary. It is a statutory obligation that has to be administered accurately, consistently and on time. Most SSP disputes arise not because employers refuse to pay, but because payments start late, are calculated incorrectly or are not supported by clear records.

From April 2026, those risks increase. SSP entitlement arises earlier, applies to more employees and, in some cases, requires a different calculation method. Employers who rely on informal processes or outdated payroll settings are likely to feel the impact quickly.

1. Paying SSP through payroll

Employers are responsible for paying SSP directly to eligible employees through payroll. SSP is paid in the same way as wages and is subject to tax and National Insurance in the usual way.

Employers need to ensure payroll systems apply the correct rate depending on the period of sickness.

2. When SSP payments start and stop

Since 6 April 2026, waiting days have been removed. SSP becomes payable from the first qualifying day of sickness. This means payment obligations arise immediately, including for short absences that would previously have attracted no SSP liability.

SSP can be paid for a maximum of 28 weeks in any one period of sickness or series of linked periods. That limit does not change from April 2026. Employers must monitor entitlement carefully and ensure payments stop at the correct point.

3. SSP1 forms and notification duties

Where an employee does not qualify for SSP, or where SSP entitlement comes to an end, employers are required to issue an SSP1 form explaining the reason.

If SSP is not payable from the outset, the SSP1 should be issued within seven days of the sickness absence starting. Where SSP entitlement ends because the 28-week maximum has been reached, the SSP1 must be issued on or before the beginning of the 23rd week of SSP.

Employers should issue SSP1 forms promptly whenever SSP cannot be paid or entitlement ends, as delays can affect an employee’s entitlement to other benefits.

Day-one entitlement and wider eligibility mean SSP1s will arise more frequently. Delays that might previously have gone unnoticed are more likely to trigger complaints, particularly where employees experience a gap in income.

Failure to issue an SSP1 does not itself create entitlement to SSP but may delay a claim for Employment and Support Allowance.

4. Record-keeping and compliance

Employers are required to keep SSP records for at least three years.

These records should include dates of sickness absence, qualifying days, SSP payments made, medical evidence received and any SSP1 forms issued. Records should alsl include calculations showing how Average Weekly Earnings were determined where the reduced-rate calculation applies.

Employers are no longer required to keep SSP records on a prescribed HMRC form but must retain sufficient records to demonstrate compliance.

Accurate records are essential for HMRC compliance and often become critical evidence in grievances, absence reviews and employment tribunal proceedings. From April 2026, earlier entitlement increases the likelihood that records will be scrutinised sooner.

Medical information used for SSP purposes must be handled in line with UK GDPR. Employers should ensure there is a lawful basis for processing, that access is restricted and that information is retained only for as long as necessary.

5. When can Statutory Sick Pay be withheld?

Although Statutory Sick Pay is a statutory entitlement, employers are not required to make payments in every case. SSP can lawfully be withheld where the statutory qualifying conditions are not met or where a statutory disqualification applies.

For example, SSP may not be payable where an employee fails to notify the employer of their sickness absence within the required timescale without good reason, does not provide medical evidence when reasonably requested after the self-certification period or has already exhausted the maximum 28 weeks of SSP entitlement.

Where SSP is not payable, employers should explain the reason clearly and issue an SSP1 form where required. Decisions to withhold SSP should be supported by contemporaneous records, as disputes often arise where employees believe payments have been stopped incorrectly or without adequate explanation.

Employers should also distinguish carefully between disciplinary issues and entitlement to SSP. Concerns about attendance or conduct do not, in themselves, remove a statutory entitlement to sick pay where the legal conditions remain satisfied.

6. Fit notes and medical evidence

Statutory Sick Pay does not depend solely on an employee reporting that they are unwell. Employers are entitled to request evidence of incapacity where the statutory requirements are met, although they should avoid asking for medical evidence earlier than the law allows unless they are prepared to meet any associated costs.

Employees can self-certify sickness absence for the first seven consecutive calendar days. From the eighth day onwards, employers can normally require a fit note issued by an authorised healthcare professional. Fit notes may be provided in paper or digital format and can be issued by GPs, nurses, occupational therapists, pharmacists, physiotherapists and certain other healthcare professionals.

A fit note stating that an employee may be fit for work does not automatically bring SSP entitlement to an end. Instead, employers should consider the adjustments recommended by the healthcare professional, such as amended duties, altered hours or workplace adaptations. If suitable adjustments cannot reasonably be accommodated, the employee should generally be treated as not fit for work for SSP purposes, provided the statutory eligibility conditions continue to be met.

Employers may choose to accept other medical evidence where appropriate but cannot insist upon a fit note before the statutory point unless prepared to reimburse any associated costs.

Medical information collected during sickness absence is likely to constitute special category personal data under UK GDPR. Employers should restrict access to those who need it, retain records only for as long as necessary and ensure fit notes and other medical evidence are handled confidentially.

Section D: SSP rates, payment periods and calculation

For employers, getting the SSP rate right is about more than applying a headline figure. The rate interacts with qualifying days, payment start points and, from April 2026, earnings-based calculations. Errors here tend to surface quickly and often form the basis of complaints, particularly where employees compare treatment across the workforce.

1. SSP rate

For the 2026–27 tax year, the statutory weekly SSP is payable at the lower of £123.25 or 80 per cent of the employee’s Average Weekly Earnings, calculated using the relevant period and earnings subject to National Insurance.

Average Weekly Earnings are calculated under the statutory relevant period rules rather than using a simple average of recent wages.

2. How long SSP can be paid

SSP can be paid for a maximum of 28 weeks in any one period of sickness or series of linked periods. This limit applies under both the current rules and the post-April 2026 regime.

Periods of sickness are treated as linked where they occur within 56 days of each other. Any SSP paid during linked periods counts towards the same 28-week maximum. Once the limit is reached, SSP entitlement ends.

Starting SSP earlier from April 2026 does not extend the overall entitlement. Employers still need to track cumulative payments carefully to ensure SSP stops at the correct point.

3. Calculating SSP in practice

SSP is calculated by reference to qualifying days, not hours worked. Qualifying days are the days an employee normally works or is contractually expected to work.

To calculate SSP, 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 relevant pay period.

This calculation now has to take account of the 80 per cent Average Weekly Earnings cap where applicable. Employers with part-time or variable-hours staff are particularly exposed to calculation errors if earnings data or qualifying day patterns are unclear.

Section E: SSP and other schemes and benefits

Statutory Sick Pay does not operate in isolation. For employers, SSP often overlaps with contractual sick pay, state benefits and National Insurance rules. Misunderstanding how these interact is a common source of error and employee dissatisfaction, particularly where payments change or end.

From April 2026, earlier SSP entitlement and wider coverage increase the likelihood that these interactions come into play sooner.

1. Interaction with contractual sick pay

Many employers offer contractual sick pay that goes beyond the statutory minimum. Where contractual sick pay applies, employers need to be clear whether SSP is included within that payment or paid in addition.

In most schemes, contractual sick pay is inclusive of SSP. This means the statutory amount forms part of the total paid rather than being paid on top. Payroll systems must identify the SSP element accurately to avoid duplication or underpayment.

Where an employee does not qualify for SSP but remains entitled to contractual sick pay, payment must be made strictly in line with the contract or policy wording. Employers should review sick pay policies ahead of April 2026 to ensure references to waiting days or earnings thresholds do not conflict with the updated SSP rules.

2. Interaction with Universal Credit and other benefits

SSP is treated as income for the purposes of means-tested benefits such as Universal Credit. Where an employee receives SSP, that income is taken into account when calculating benefit entitlement and may reduce the amount payable.

Universal Credit calculations normally take SSP into account through HMRC Real Time Information, although claimants remain responsible for complying with DWP reporting requirements. Employers are not required to administer benefits, but delayed or incorrect SSP payments can have a knock-on effect on an employee’s wider financial position, increasing the likelihood of complaints or disputes.

3. National Insurance treatment of SSP

SSP is treated as taxable earnings and must be processed through PAYE. Income tax and National Insurance contributions are calculated in the normal way based on the employee’s total earnings during the relevant pay period rather than SSP in isolation.

4. SSP and other statutory payments

Certain statutory payments override SSP entitlement for the same period. Employees who are entitled to Statutory Maternity Pay or Maternity Allowance cannot receive SSP at the same time, even if they are unwell.

The April 2026 reforms apply only to SSP. Other statutory payments, including Statutory Maternity Pay, continue to have separate qualifying conditions and earnings requirements. Employers should be careful not to assume that changes to SSP eligibility apply more widely across all statutory schemes.

5. Statutory Sick Pay and annual leave

Sickness absence does not prevent statutory annual leave from continuing to accrue. Employees continue to build up their statutory holiday entitlement while receiving SSP, including during long-term sickness absence.

Where an employee becomes unwell during a period of annual leave, they may be entitled to treat the affected days as sickness absence instead of holiday, provided the employer’s reporting procedures are followed and appropriate evidence is supplied where required. The annual leave can then normally be taken at another time.

Employers should ensure absence policies explain how sickness during annual leave should be reported and recorded. Clear procedures reduce the risk of disputes over holiday entitlement while maintaining accurate payroll and absence records.

Section F: Common issues and challenges for employers

Statutory Sick Pay is often treated as a routine payroll matter, but most employer difficulties arise from process rather than principle. Errors tend to surface when absence is short term, recurring or poorly documented, or where payroll and HR processes are not aligned. From April 2026, those pressure points become more acute as SSP entitlement arises earlier and applies to a wider group of employees.

1. Applying outdated eligibility rules

One of the most common problems is reliance on outdated eligibility assumptions. Under the current regime, earnings thresholds and waiting days have acted as filters. From April 2026, those filters fall away.

Employers who continue to assume that lower-paid or casual staff do not qualify, or that SSP only becomes relevant after several days of absence, are likely to underpay SSP or delay payment unintentionally. These errors are more likely to trigger complaints because entitlement now arises immediately.

2. Inaccurate qualifying day patterns

Unclear or poorly documented working patterns remain a significant source of SSP error. Where qualifying days are not clearly defined, employers risk defaulting to the statutory fall-back position that treats all seven days of the week as qualifying days.

From April 2026, this risk increases. With SSP payable from the first qualifying day, any uncertainty around working patterns is more likely to result in immediate cost and dispute rather than being absorbed by waiting days.

3. Payroll systems not configured for the current SSP rules

Many payroll systems are configured on the assumption that SSP is a flat-rate payment. From April 2026, that assumption is no longer safe.

Employers will need systems that can apply the lower of the statutory maximum or 80 per cent of Average Weekly Earnings. Where systems default to the flat rate, underpayments for lower-paid employees are likely to occur and will be difficult to defend once identified.

4. SSP1 timing and communication failures

SSP1 handling is an area where small delays can have disproportionate consequences. Where SSP is not payable, or where entitlement ends, employers are required to issue an SSP1 promptly so the employee can access alternative support.

From April 2026, SSP1s will arise more frequently due to day-one entitlement and wider coverage. Late issuance is more likely to result in income gaps and complaints, with employers blamed for process failure rather than technical oversight.

5. Managing repeated short-term absence

Repeated short-term absence has always been difficult to manage, but the removal of waiting days changes the dynamics. Absences that previously attracted no SSP liability now trigger payment from day one.

Employers who do not review absence patterns proactively may find SSP cost escalating quietly, while managers struggle to apply trigger points consistently without breaching Equality Act obligations where health conditions may amount to a disability.

6. Reviewing policies after the April 2026 reforms

Many sickness absence procedures were drafted when Statutory Sick Pay only became payable after three waiting days and applied to a narrower group of employees. Those assumptions are no longer reflected in the current legal framework.

Employers should review sickness absence policies, employee handbooks, payroll settings and manager guidance to ensure references to waiting days, earnings thresholds and SSP eligibility remain accurate. Payroll systems should also be capable of calculating SSP correctly where employees receive the lower of the statutory weekly rate or 80% of their average weekly earnings.

Managers responsible for recording sickness absence should understand when SSP becomes payable, what evidence may be requested and when an SSP1 form must be issued. Administrative errors made during the first stages of an absence are often more difficult to correct once payroll has been processed.

Regular reviews of absence procedures can also help employers identify recurring short-term absence, maintain consistent decision-making and reduce the risk of payroll disputes or unlawful deduction from wages claims.

Summary

Statutory Sick Pay now operates under a substantially different framework following the reforms introduced on 6 April 2026. Waiting days have been abolished, eligibility has widened and lower-paid employees may receive SSP calculated by reference to average weekly earnings rather than the full statutory rate.

For employers, the risk is no longer confined to knowing the weekly rate. Eligibility assumptions, qualifying day patterns, payroll configuration and SSP1 timing now carry greater weight. Errors that might previously have been absorbed by waiting days or earnings thresholds are more likely to crystallise immediately and escalate into complaints or disputes.

Need Assistance?

If you need advice on how the Statutory Sick Pay rules apply to your organisation, including applying the current SSP rules, our employment lawyers can help. We advise employers on SSP eligibility, rate calculations, SSP1 obligations and aligning payroll and absence processes to reduce risk. To discuss your position and get clear, practical guidance, call us to arrange a confidential telephone consultation.

Statutory Sick Pay FAQs

What is Statutory Sick Pay?

Statutory Sick Pay is the minimum level of sick pay that UK employers are required to pay to eligible employees who are unable to work due to illness. It is a statutory obligation rather than a contractual benefit and is administered and funded entirely by the employer.

What is the current SSP rate?

For the 2026–27 tax year, the current statutory weekly rate is £123.25. Employees receive the lower of this amount or 80% of their average weekly earnings.

Does SSP apply from the first day of sickness?

Since 6 April 2026, waiting days have been abolished and SSP is payable from the first qualifying day, provided the employee satisfies the statutory eligibility conditions.

When does SSP start to be paid?

SSP is payable from the first qualifying day of sickness, provided the employee meets the statutory eligibility conditions.

Can employers reclaim Statutory Sick Pay?>/strong>

No. Employers generally fund SSP themselves and there is currently no general SSP reimbursement scheme.

Who qualifies for SSP?

From 6 April 2026, the earnings threshold is removed for SSP, so eligible employees are no longer excluded because of low earnings, provided the remaining conditions are met.

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.

How is SSP calculated for part-time or variable-hours staff?

SSP is calculated by reference to qualifying days, not hours worked. SSP is capped at 80 per cent of Average Weekly Earnings, which is calculated using the relevant period. As a result, lower-paid employees may receive SSP below the headline rate.

What is an SSP1 form and when is it required?

An SSP1 form must be issued where SSP is not payable or where entitlement ends. Where SSP ends due to the 28-week limit, the SSP1 must be provided on or before the beginning of the 23rd week of SSP to allow the employee to apply for New Style Employment and Support Allowance.

Can SSP be paid alongside contractual sick pay?

Yes. Contractual sick pay can enhance SSP, but employers should ensure that the SSP element is included within the total payment rather than duplicated. Policy wording and payroll treatment need to be aligned.

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. Taking action because an employee has asserted a right to SSP would expose the employer to legal risk.

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