What Is Statutory Sick Pay? A Full Guide
Statutory Sick Pay is the legal minimum an employer must pay an employee who is too ill to work, set at £123.25 a week for the 2026-27 tax year and payable for up to 28 weeks [1]. Since 6 April 2026 it has been paid from the first day of sickness, and around 1.3 million lower-paid workers who previously received nothing now qualify [11].
SSP sits at the centre of every employer's absence process, yet it is widely misunderstood. It is not the same as company sick pay, it is not optional, and the conditions an employee must meet to receive it are precise. The rules also changed substantially on 6 April 2026, so guidance written before that date is now out of step.
This guide explains what Statutory Sick Pay is, who qualifies, how much it is worth, what the recent reform changed, and how the payment flows through an employer's payroll and Real Time Information returns.
Key takeaways
- Statutory Sick Pay is the legal minimum sick pay, worth £123.25 a week or 80% of average weekly earnings, whichever is lower.
- SSP is paid from the first qualifying day of sickness and can run for up to 28 weeks in a single or linked period.
- Every employee qualifies regardless of earnings, because the Lower Earnings Limit was removed on 6 April 2026.
- SSP is taxable and subject to National Insurance, and it is reported through Real Time Information like any other pay.
- Company or occupational sick pay is separate and usually more generous, and SSP can be offset against it.
What Statutory Sick Pay is
Statutory Sick Pay is a payment defined in law that an employer must make to a qualifying employee during sickness absence. It is the floor beneath any sick pay arrangement, the minimum every employer has to provide [1]. For the 2026-27 tax year the weekly rate is £123.25, or 80% of the employee's average weekly earnings where that figure is lower [2].
SSP is distinct from occupational sick pay, sometimes called company or contractual sick pay, which is whatever an employer chooses to offer above the statutory floor and which must be set out in the employment contract [14]. Where an occupational scheme exists, the employer can offset SSP against it for the same period, so an employee on full company sick pay does not receive SSP on top [4].
The payment is the employer's responsibility, not the state's. The employer pays SSP through payroll in the same way as wages, deducting income tax and National Insurance, and cannot reclaim the cost from HMRC [2]. This is what separates SSP from family-related statutory payments, where smaller employers recover the bulk of the outlay.
Who qualifies for Statutory Sick Pay
To receive SSP, a person must be an employee who has done some work under their contract, must be sick for at least four days in a row including non-working days, and must earn enough to count as an employed earner [3]. The four-day spell is the period of incapacity for work, and it includes weekends and bank holidays even though those may not be working days [8].
Crucially, the earnings test changed on 6 April 2026. An employee no longer has to earn above the Lower Earnings Limit to qualify, so the lowest-paid staff are now entitled to SSP for the first time, receiving 80% of their average weekly earnings rather than the flat rate [11]. The qualifying conditions otherwise remain a contract of service, some work performed, and proper notice of sickness [7].
Employment types and SSP
A common misconception is that only permanent, full-time staff receive SSP. In fact, casual, short-term, zero-hours and part-time workers all qualify provided they meet the standard conditions, because they are employees for SSP purposes [9]. Agency workers categorised as employed earners are also entitled, with specific rules where an overarching contract continues between assignments [9].
The table below summarises how the main employment types are treated.
| Employment type | SSP entitlement | Note |
|---|---|---|
| Full-time and part-time employees | Yes, if conditions met | Part-time daily rate spread across qualifying days |
| Zero-hours and casual workers | Yes, if classed as employees | Average weekly earnings drives the rate |
| Agency workers | Yes, if employed earners | Overarching contract rules apply |
| Genuinely self-employed | No | Not employees for SSP purposes |
Removing the earnings floor brought a large share of zero-hours and casual staff into entitlement, which is why employers with flexible workforces felt the reform most [13]. Modern UK payroll software assesses each worker's earnings over the relevant period so the right figure is applied automatically. A one-person business issuing the occasional payslip can produce a compliant record through a payroll service for sole traders.
Notice and fit notes
An employee must tell the employer they are unable to work, usually by a deadline the employer sets, or within seven days if none is set [6]. An employer cannot insist on being told earlier than the first qualifying day, and late notice can cost the employee some SSP [6].
For absences of seven calendar days or fewer the employee self-certifies, with no medical evidence required [16]. Beyond seven days the employee must provide a fit note, which can be issued by a doctor, nurse, pharmacist, physiotherapist or occupational therapist [16]. The fit note supports the absence but does not itself decide SSP entitlement, which rests on the qualifying conditions.
How much Statutory Sick Pay is worth
The weekly rate of £123.25 applies to most employees, while lower earners receive 80% of their average weekly earnings [10]. Average weekly earnings are worked out over the eight weeks ending with the last normal payday before the sickness began [15].
Because sickness is counted in days, the daily figure depends on how many days a week the employee works. The daily rate is the weekly rate divided by the number of qualifying days [15].
| Qualifying days per week | Daily rate |
|---|---|
| 5 | £24.65 |
| 6 | £20.55 |
| 7 | £17.61 |
A five-day worker therefore receives £24.65 for each qualifying sick day, up to the weekly cap of £123.25 [2]. The weekly total can never exceed the flat rate, and fractions of a penny are rounded up [15].
What changed on 6 April 2026
The Employment Rights Act 2025 reformed SSP from 6 April 2026, the most significant change to UK sick pay in a generation [11]. Two structural changes drive the difference.
Waiting days removed
SSP used to be payable only from the fourth day of sickness, with the first three treated as unpaid waiting days. From 6 April 2026 those waiting days were abolished, so SSP is due from the first qualifying day of absence [13]. Short absences of one to three days, which previously cost nothing in SSP, now carry a cost from day one [12].
A transitional protection applies to anyone already receiving SSP before 6 April 2026, who continues on the flat rate of £123.25 for the duration of that continuous absence so the new formula does not reduce their pay [13]. The protection ends when they return to work [12].
Lower Earnings Limit removed
Previously an employee had to earn at or above the Lower Earnings Limit to qualify for SSP at all, which excluded around 1.3 million low-paid and part-time workers [12]. That earnings floor was removed, so every employee now qualifies, with those earning below the flat rate receiving 80% of their average weekly earnings instead of nothing [11].
The combined effect is a meaningful extension of entitlement and a rise in employer cost, concentrated in sectors with high short-term absence and large flexible workforces [13].
The period of incapacity for work and the linking rule
SSP is built around the period of incapacity for work, the spell of four or more consecutive days of sickness, counting every day including weekends [8]. Two separate spells link into one continuous period if the gap between them is eight weeks or less [4].
The linking rule matters for the rate as well as the duration. In a linked period the average weekly earnings figure is taken from the first spell, so a pay rise between absences does not raise the SSP rate, and the 28-week maximum applies across the whole linked period rather than resetting [8]. When entitlement reaches 28 weeks, the employer issues form SSP1 so the employee can claim Employment and Support Allowance [5].
How SSP runs through payroll
Statutory Sick Pay is taxable and subject to National Insurance, so it is processed through payroll with the usual deductions and reported through Real Time Information on the Full Payment Submission [17]. It appears on the payslip as part of gross pay, not as a separate untaxed benefit [2].
Unlike family-related statutory payments, SSP cannot be recovered from HMRC, so there is nothing to reclaim through the Employer Payment Summary [18]. HMRC-recognised payroll software submits the FPS automatically and reflects SSP in the right fields without manual reconfiguration, which matters now that day-one payment makes short absences a routine payroll event [17]. Accountants handling sick pay across many client schemes typically run a multi-client payroll platform, while software platforms embedding UK payroll into their own products use an HMRC-recognised payroll API to apply the statutory rules at source. The companion SSP reform explained article sets out the day-one and earnings-floor changes in more depth.
Conclusion
Statutory Sick Pay is best understood as a floor rather than a scheme: the legal minimum an employer must pay during sickness, sitting beneath any more generous company arrangement. Its value depends on earnings and working pattern, its duration is capped at 28 weeks, and its conditions turn on the period of incapacity for work and the notice the employee gives.
The 6 April 2026 reform widened the floor and lifted the cost. Every employee now qualifies, payment starts on day one, and the lowest earners are inside the system for the first time. For employers, that turns SSP from an occasional line into a regular feature of payroll, and the businesses that manage it cleanly will be those whose small business payroll applies the earnings test, the daily-rate maths and the linking rule without manual intervention.
Frequently asked questions
Is statutory sick pay the same as company sick pay?
No. Statutory Sick Pay is the legal minimum every employer must pay, currently £123.25 a week, while company or occupational sick pay is a more generous arrangement an employer chooses to offer and sets out in the contract [14]. Where a company scheme exists, SSP can be offset against it for the same period, so the two do not stack [4].
Do zero-hours and part-time workers get statutory sick pay?
Yes. Casual, zero-hours and part-time staff qualify for SSP as long as they meet the standard conditions, because they count as employees for SSP purposes [9]. Since the Lower Earnings Limit was removed on 6 April 2026, even the lowest earners are entitled, receiving 80% of their average weekly earnings where that is below the flat rate [11].
When does statutory sick pay start?
SSP is payable from the first qualifying day of sickness, following the removal of the three waiting days on 6 April 2026 [13]. An employee still needs to be sick for at least four consecutive days, including non-working days, to establish a period of incapacity for work before SSP becomes due [3].
Is statutory sick pay taxable?
Yes. Statutory Sick Pay is treated as earnings, so income tax and National Insurance are deducted and the payment is reported through Real Time Information on the Full Payment Submission [17]. The employer cannot recover SSP from HMRC, unlike family-related statutory payments [18].
