Statutory Sick Pay: the post-reform employer guide
Statutory Sick Pay is worth £123.25 a week or 80% of average weekly earnings, whichever is lower, for the 2026-27 tax year [1]. From 6 April 2026, two structural changes reshaped it: the three unpaid waiting days were removed, so SSP is now due from the first day of sickness, and the Lower Earnings Limit was removed, so every eligible employee qualifies regardless of earnings [5]. The government estimates the reform extends sick pay to around 1.3 million low-paid workers who previously got nothing [8].
This is the biggest change to UK sick pay in a generation, and it lands squarely on the employer. SSP cannot be reclaimed from HMRC, so every pound paid is a cost the business absorbs. The reform widens who is entitled and brings payment forward, which raises that cost for most employers.
This article sets out the current rate and how it is calculated, the two reforms in detail, the eligibility tests that remain, the 28-week limit, the rules on fit notes, and the reason SSP behaves differently from every other statutory payment.
Key takeaways
- Statutory Sick Pay is £123.25 a week or 80% of average weekly earnings, whichever is lower, for the 2026-27 tax year.
- From 6 April 2026, SSP is paid from the first qualifying day of sickness; the three waiting days have gone.
- The Lower Earnings Limit no longer applies, so all eligible employees qualify regardless of how much they earn.
- SSP runs for a maximum of 28 weeks, after which the employer issues form SSP1.
- SSP is not recoverable from HMRC, so the employer carries the full cost.
What Statutory Sick Pay is
Statutory Sick Pay (SSP) is the legal minimum payment an employer must make to an eligible employee who is too ill to work [2]. An employer can offer a more generous contractual sick pay scheme, but never less than SSP. It is paid through payroll and treated as earnings, so PAYE income tax and Class 1 National Insurance are deducted in the normal way [4].
SSP sits apart from the family-related statutory payments in one decisive respect: it cannot be recovered from HMRC [12]. Family payments such as Statutory Adoption Pay are reclaimed at 92% or more, but the cost of SSP stays entirely with the employer. That is why the post-reform changes matter to cash flow rather than just to compliance.
The two reforms from 6 April 2026
The Employment Rights Act 2025 made two changes to SSP that came into force on 6 April 2026, both designed to widen access for lower-paid and short-term-absent workers [6]. The wider context of the change is covered in the guide to the 2026 SSP reform.
Waiting days removed
SSP was previously unpaid for the first three qualifying days of any absence, known as waiting days, and only became payable from the fourth day [7]. From 6 April 2026, those waiting days were abolished, so SSP is payable from the first qualifying day of sickness, including single-day absences where the employee is otherwise eligible [5]. The previous rule that an employee had to be off for four or more days before any SSP was due no longer applies [6].
Lower Earnings Limit removed
SSP used to be available only to employees earning at or above the Lower Earnings Limit [2]. From 6 April 2026, that earnings floor was removed, so every eligible employee qualifies regardless of earnings, with lower earners receiving 80% of their average weekly earnings rather than the flat rate [5]. The government's impact assessment puts the additional employer cost of both changes at around £450 million a year [14].
How much SSP is and how it is calculated
The headline rate is a weekly figure, but SSP is paid for qualifying days, so the calculation turns the weekly rate into a daily amount. The table below sets out the figures for the 2026-27 tax year.
| Item | 2026-27 figure |
|---|---|
| Weekly SSP rate | £123.25 or 80% of average weekly earnings, whichever is lower |
| First day paid | Day 1 of sickness (waiting days removed) |
| Earnings threshold | None (Lower Earnings Limit removed) |
| Maximum duration | 28 weeks |
The daily rate is the weekly rate divided by the number of qualifying days in the week, which are usually the employee's normal working days [4]. For an employee with five qualifying days, the daily rate is £123.25 divided by five, which is £24.65 [1]. The arithmetic is straightforward in principle but error-prone by hand, especially for part-time and variable patterns, which is why HMRC-recognised payroll software for SMEs calculates the qualifying-day rate automatically each payrun.
Who is eligible for SSP
The earnings test has gone, but the rest of the eligibility framework remains. An employee qualifies if they have done some work under their contract, are off sick, and have told the employer within the employer's notification deadline [15]. There is no minimum length of service for SSP.
Periods of incapacity for work
SSP relates to a period of incapacity for work, and two periods of sickness separated by eight weeks or less are linked and treated as a single period for the purposes of the 28-week limit [10]. Linking prevents an employee resetting the 28-week clock by returning briefly between long absences. Payroll teams managing several employers at once usually track linked absences inside a multi-client payroll dashboard so the running total is never lost.
Notification and evidence
An employee can self-certify for the first seven calendar days of sickness, after which the employer can ask for a fit note from a healthcare professional [7]. The fit note can come from a GP, a nurse, a pharmacist, a physiotherapist or an occupational therapist, which widens the range of evidence an employer may receive [6].
When SSP ends: the 28-week limit and SSP1
SSP is payable for a maximum of 28 weeks in a single or linked period of incapacity for work [11]. When that limit is reached, or when SSP is going to end before the employee is fit to return, the employer must issue form SSP1 so the employee can claim Employment and Support Allowance or another benefit instead [3].
The timing of SSP1 matters. The employer must send it within 7 days of SSP ending if it ends unexpectedly, or on or before the beginning of the 23rd week if the absence is expected to run past the 28-week limit [3]. Software vendors and HR platforms can build this entire workflow, including the linked-period count and the SSP1 trigger, through an HMRC-recognised payroll API rather than coding statutory sick pay logic from scratch.
Absences that span 6 April 2026
A transitional rule covers sickness that began before the reform and continued after it. For an absence that started before 6 April 2026 and ended on or after that date, waiting days that fell before 6 April 2026 do not become payable retrospectively, so the new day-one rule applies only from the changeover date forward [9]. Employers running payroll across that boundary need to apply the old and new rules to the correct portions of a single absence.
Conclusion
Statutory Sick Pay has shifted from a payment many lower-paid and short-term-absent workers never saw to one that reaches from the first day of any qualifying sickness. The rate itself, £123.25 a week or 80% of earnings, is the least of the change. The removal of waiting days and the earnings floor widens entitlement and pulls cost forward, and because SSP is the one statutory payment an employer cannot reclaim, that cost lands in full on the business, which makes accurate payroll for SMEs more important than ever.
The reform sits alongside the wider package of day-one rights introduced by the Employment Rights Act 2025, and further detail continues to arrive through HMRC's Employer Bulletin [13]. Employers who have updated their absence policies and payroll settings to pay from day one, drop the earnings check and track linked periods will be on the right side of the rules as the rest of the reform programme rolls out.
Frequently asked questions
How much is Statutory Sick Pay for the 2026-27 tax year?
It is £123.25 a week, or 80% of the employee's average weekly earnings if that figure is lower [1]. The amount is paid for qualifying days, so the weekly rate is divided by the number of days the employee normally works to give a daily rate [4].
Is Statutory Sick Pay now paid from the first day of sickness?
Yes. From 6 April 2026, the three unpaid waiting days were removed, so SSP is payable from the first qualifying day of sickness for an eligible employee [5]. The old rule requiring four or more consecutive days of absence before any SSP was due no longer applies [6].
Can an employer reclaim Statutory Sick Pay from HMRC?
No. Unlike maternity, paternity and adoption pay, SSP cannot be recovered from HMRC, so the employer absorbs the full cost [12]. This is why the removal of waiting days and the earnings limit raises real costs for employers rather than simply shifting them to the state.
How long does Statutory Sick Pay last?
SSP is payable for up to 28 weeks in a single or linked period of incapacity for work [11]. When it ends, or is about to end before the employee can return, the employer must issue form SSP1 so the employee can apply for Employment and Support Allowance or another benefit [3].
