What Is Statutory Sick Pay?
Statutory Sick Pay, commonly abbreviated to SSP, is money an employer pays to an eligible employee who is unable to work because of illness. SSP is paid by the employer through the normal payroll system. It is generally treated in the same way as normal earnings for payroll purposes, meaning applicable deductions such as Income Tax and National Insurance are made through payroll. SSP is normally paid on the employee's usual payday. Employers can offer employees more generous sick pay through a contractual or occupational sick pay scheme. However, where an employee qualifies for SSP, an employer's scheme cannot provide less than the statutory entitlement.
What Is the Statutory Sick Pay Rate for 2026/27?
For the 2026/27 tax year, the weekly SSP rate is:
- £123.25 per week, or
- 80% of the employee's average weekly earnings
The employee receives whichever amount is lower.This is an important change from the previous system because lower-paid employees can now qualify for SSP even if they earn below the previous earnings threshold.For example, if 80% of an employee's average weekly earnings is less than £123.25, their SSP will be based on the lower 80% amount.The actual amount payable for an absence also depends on the employee's qualifying days.
Who Is Eligible for Statutory Sick Pay?
From 6 April 2026, an employee generally needs to meet several basic conditions to qualify for SSP.
They must:
- Have an employment contract
- Have completed some work under that contract
- Be unable to work because of sickness for at least one full working day
- Notify their employer about the sickness
- Provide appropriate evidence where required
The previous requirement to earn at least the Lower Earnings Limit no longer applies to new SSP entitlement under the post-April 2026 rules. This change considerably expands the number of employees who may qualify for statutory sick pay. Employers should therefore avoid relying on old payroll procedures or eligibility checklists that automatically reject employees because their earnings are too low.
Does SSP Start From the First Day of Sickness?
Yes, under the rules applying from 6 April 2026, SSP can be payable from the first qualifying day of sickness. Previously, employees generally had three waiting days before SSP became payable. Those waiting-day rules were removed as part of the changes introduced from April 2026. This means employers need to process sickness absence promptly. For example, if an employee normally works Monday to Friday and is unable to work on Monday because they are ill, Monday can now be an SSP qualifying day where the other eligibility requirements are met. However, an employee cannot generally count a day as a full sickness day if they have already carried out work that day before going home sick.
What Are Qualifying Days?
SSP is paid for an employee's qualifying days. These are usually the days the employee would normally be expected to work under their employment arrangements. For example, an employee who normally works Monday to Friday will usually have five qualifying days each week. The SSP daily rate depends partly on how many qualifying days the employee normally has.
For the standard £123.25 weekly SSP rate in 2026/27, HMRC's published unrounded daily amounts include:
- 1 qualifying day: £123.25
- 2 qualifying days: £61.625 per day
- 3 qualifying days: £41.0833 per day
- 4 qualifying days: £30.8125 per day
- 5 qualifying days: £24.65 per day
- 6 qualifying days: £20.5416 per day
- 7 qualifying days: £17.6071 per day
Employers should use the appropriate calculation for the employee rather than simply dividing the weekly SSP rate by five in every case.
How Is Statutory Sick Pay Calculated?
An employee's SSP calculation will depend on factors including:
- Average weekly earnings
- Number of qualifying days
- Length of sickness absence
- Whether the employee continues to qualify
- Whether the standard rate or 80% earnings calculation applies
Average weekly earnings are normally calculated using earnings over an eight-week period, although special rules can apply where an employee has been employed or paid for less than eight weeks. Employers can use HMRC's Statutory Sick Pay calculator or payroll software capable of applying the current SSP rules. Payroll software should also be updated for the 2026/27 tax year because calculations based on the old SSP waiting-day and earnings-threshold rules may produce incorrect results.
How Should SSP Be Processed Through Payroll?
Statutory sick pay payroll processing should normally form part of the employee's usual pay run. Employers should record the sickness absence and calculate the employee's entitlement before completing payroll.
A typical process includes:
- Recording the employee's first day of sickness
- Recording the qualifying days missed
- Checking SSP eligibility
- Calculating average weekly earnings where required
- Calculating SSP
- Adding any contractual sick pay
- Applying PAYE deductions
- Processing the payment on the normal payday
- Maintaining sickness records
SSP is paid like normal wages and may therefore be subject to Income Tax and National Insurance where applicable.
When Does an Employee Need a Fit Note?
Employers cannot normally require an employee to provide a fit note during the first seven consecutive days of sickness. An employer can request a fit note where an employee is absent for more than seven days in a row, including non-working days such as weekends.
A fit note may be issued by an authorised healthcare professional, including:
- A GP or hospital doctor
- Registered nurse
- Pharmacist
- Physiotherapist
- Occupational therapist
Employees should still follow the employer's normal sickness reporting procedure. Where the employer has not established a notification deadline, HMRC states that employees should normally notify the employer within seven days.
What Is an SSP1 Form?
Employers may need to issue an SSP1 form where an employee cannot receive SSP or their SSP entitlement is coming to an end. The form explains why SSP is not being paid and can help the employee when making a claim for another relevant benefit. Employers must complete the SSP1 where required and provide it to the employee.
Situations where an SSP1 may become relevant include when:
- An employee is not entitled to SSP
- SSP entitlement is coming to an end
- The employee has reached the maximum SSP period
Employers should use the current version of the SSP1 form because the document was updated following the SSP changes introduced from April 2026.
How Long Can Statutory Sick Pay Be Paid?
Eligible employees can normally receive SSP for up to 28 weeks.
SSP can end earlier if the employee:
- Returns to work
- Stops meeting the qualifying conditions
- Reaches the maximum entitlement period
Employers should monitor long-term sickness carefully and issue the appropriate documentation when SSP is coming to an end. Businesses should also remember that an employee continues to accrue statutory annual leave while they are absent because of sickness.
Can Employers Reclaim SSP From HMRC?
No. Employers cannot normally recover Statutory Sick Pay from HMRC. This differs from several other statutory payments, such as Statutory Maternity Pay, Statutory Paternity Pay and Statutory Adoption Pay, where employers may be able to recover some or all of the payment from HMRC. HMRC's 2026/27 employer guidance specifically confirms that SSP cannot be recovered. Employers should therefore take SSP costs into account when budgeting for payroll and employee absence.
Statutory Sick Pay vs Company Sick Pay
SSP and company sick pay are not necessarily the same thing. Statutory Sick Pay is the statutory minimum entitlement for eligible employees. Company sick pay, sometimes called contractual or occupational sick pay, is an additional benefit offered under the employee's employment contract.
A company scheme might provide:
- Full salary for a specified period
- Half pay after full sick pay expires
- Enhanced sick pay based on length of service
- Other contractual arrangements
Employers should clearly explain company sick pay arrangements in employment contracts or relevant workplace policies.
Common SSP Payroll Mistakes
The April 2026 changes mean employers should pay particular attention to outdated payroll practices.
Common mistakes can include:
- Applying the old three waiting-day rule
- Applying the old minimum earnings threshold
- Using an outdated SSP rate
- Calculating the wrong qualifying days
- Incorrectly calculating average weekly earnings
- Requesting fit notes too early
- Failing to provide an SSP1 when required
- Treating SSP as separate from normal payroll deductions
- Using outdated payroll software
- Failing to maintain suitable sickness records
Regular payroll checks can help businesses identify these issues before employees are underpaid or payroll records become inaccurate.
Final Thoughts
Statutory Sick Pay is a core payroll responsibility for UK employers, and the rules changed significantly from 6 April 2026.
For 2026/27, eligible employees can receive £123.25 per week or 80% of average weekly earnings, whichever is lower, for up to 28 weeks. The previous waiting days have been removed, meaning SSP can start from the first qualifying day of sickness, and employees no longer need to meet the previous minimum earnings threshold.
Employers should ensure payroll software, sickness policies and internal procedures reflect these rules.
Accurate sickness records, correct SSP calculations and timely payroll processing can help employers meet their responsibilities while ensuring employees receive the sick pay to which they are entitled.