Understanding Statutory Sick Pay (SSP)

When an employee falls ill and is unable to work, Statutory Sick Pay (SSP) is a legal right that provides financial support during their absence. For employers and payroll professionals, understanding how SSP works and how it fits into payroll processes is essential for compliance and employee wellbeing.

The government has announced plans that from April 2026, the main changes to SSP will be the abolition of the three-day waiting period, meaning SSP will be paid from day one of sickness, and the removal of the Lower Earnings Limit (LEL), making more employees eligible for SSP. Additionally, for those employees who earn below the current LEL, their SSP will be calculated at 80% of their usual weekly earnings, or the government-set flat rate, whichever is lower.

In this blog, we’ll break down the key elements of SSP, including eligibility, rates, duration, and your responsibilities as a business owner.

 

What Is Statutory Sick Pay (SSP)? 

Statutory Sick Pay is the minimum amount employers must pay employees who are off work due to illness. It’s a government-mandated payment, and employers are responsible for administering it through their payroll system.

 

Who Is Eligible for SSP? 

Employees must meet the following criteria to qualify for SSP:

• Be classed as an employee and have done some work for the employer
• Earn an average of at least £125 per week (as of the 2025/26 tax year)
• Have been off sick for 4 or more consecutive days (including non-working days)
• Employees on fixed-term, part-time, or zero-hours contracts may still qualify, as long as they meet the earnings and absence criteria

Currently the first three days of sickness are waiting days and are unpaid unless they’ve previously qualified for SSP in the same illness period – as mentioned above, this will change in April 2026.

 

How Much Is SSP? 

As of the 2025/26 tax year, the standard SSP rate is:

• £118.75 per week (up to 28 weeks)

SSP is paid by the employer in the same way as wages, on the usual payday, with deductions for tax and National Insurance where applicable.

 

Recording SSP in Payroll 

You should record SSP payments accurately within your payroll system. Most payroll softwares include SSP calculation features that automatically:

• Identify SSP-qualifying days
• Apply the correct waiting days
• Calculate SSP due and deduct it from gross pay
• Generate appropriate payslips and reports

Employers must keep records of SSP paid for at least 3 years, including dates of sickness, payments made, and medical evidence provided.

 

Evidence of Illness 

• For absences of 7 days or fewer: No medical evidence is required. Employers may ask for self-certification.
• For absences longer than 7 days: A “fit note” (previously known as a sick note) from a GP or hospital is required.

Employer Obligations and Good Practice 

Although SSP is statutory, many employers choose to offer Occupational Sick Pay (OSP) that is more generous than the statutory minimum. If so, your employment contracts or staff handbooks must outline the terms clearly. Employers cannot reclaim SSP from HMRC (except in rare circumstances, like COVID-related schemes which are now closed). Therefore, budgeting for employee sickness is a key part of payroll planning.

 

Final Thoughts

Statutory Sick Pay plays a crucial role in supporting employees during periods of illness and forms a vital component of UK payroll compliance. Whether you’re a small business owner running your own payroll or a large organisation with an in-house HR team, keeping your SSP processes accurate and up to date ensures legal compliance and promotes a healthy, supported workforce.

Need help managing SSP or payroll in general? Contact us today for expert payroll support tailored to your business needs.

CONTACT US