Statutory Sick Pay Rules Explained for Employers

• For 2026/27, eligible employees receive £123.25 per week or 80% of average weekly earnings, whichever is lower.
• The £125 minimum weekly earnings threshold no longer applies to SSP.
• More low-paid and part-time workers can qualify, provided they meet the other eligibility conditions.
• Since 6 April 2026, SSP has been payable from the first qualifying day of sickness, with no three-day waiting period.

Statutory Sick Pay (SSP) is the minimum amount employers must pay eligible staff who are too ill to work.

You must pay SSP for up to 28 weeks if the employee is off sick and meets the eligibility criteria.

To qualify for SSP, an employee must have started work under their contract, be sick for at least one full working day and meet the notification and other eligibility requirements.

SSP can also apply to agency workers and other people classed as employed for tax purposes. It is not available for self-employment.

Payment begins on the first qualifying day of sickness. The three-day waiting period has been removed. Qualifying days are the days an employee normally works.

The SSP reforms under the Employment Rights Act 2025 took effect on 6 April 2026 and changed SSP in three main ways:

For the 2026/27 tax year, SSP is £123.25 per week or 80% of the employee’s average weekly earnings, whichever is lower.

For example, an eligible employee with average weekly earnings of £100 would receive £80 for a full week of sickness. If average weekly earnings are £300, the weekly SSP amount is £123.25.

The amount due depends on earnings and the number of qualifying days missed. Employers are free to offer more generous terms, both in terms of rate and duration, through a contractual sick pay scheme.

To qualify for SSP, employees must now earn at least £125 per week, up from £123. This applies to average gross earnings across the eight-week period before sickness begins.

SSP applies from the first full qualifying day of sickness. A day on which an employee does some work before going home sick does not count as a full sick day for SSP.

Ensure your payroll, policies and internal procedures reflect the current SSP rules. The following checks can help you apply them consistently.

Ensure your payroll software applies the 2026/27 weekly SSP rate of £123.25 or 80% of average weekly earnings, whichever is lower.

Check that payroll no longer uses the £125 minimum earnings test or the three-day waiting period. Eligible employees should receive SSP from their first qualifying day of sickness.

Use the correct average weekly earnings reference period, usually at least eight weeks ending with the last normal payday before the first full day of sickness. Employees with fewer than eight weeks’ earnings can still qualify. Follow HMRC’s calculation rules for new starters and employees who have not yet been paid.

Pay SSP through payroll on the normal payday, with tax and National Insurance deductions where applicable.

Update sickness absence policies, employee handbooks and any documentation that refers to SSP rates or eligibility rules.

Ensure employment contracts do not contain outdated references to SSP entitlements.

Employees should report sickness within your deadline, or within seven days if no deadline is set.

For SSP purposes, a fit note can only be requested after more than seven consecutive days of absence, including non-working days. Do not withhold SSP solely because a fit note arrives late.

Make sure line managers, HR teams and payroll officers understand the current SSP rate, earnings calculation and eligibility criteria. They should also understand the organisation’s sickness reporting procedures and know where to refer questions about entitlement.

Explain the current sick pay arrangements and how staff should report sickness absence. Make sure employees can easily find the relevant policy and know whom to contact with questions.

Review how expanded eligibility and payment from the first qualifying day affect sick pay costs. Coordinate with payroll providers to identify and correct underpayments. Employers cannot reclaim SSP from HMRC.

If you are reviewing SSP for an absence that began before 6 April 2026, check HMRC’s transitional guidance, including any rules affecting linked absences.

Record qualifying days and linked absences so SSP is paid correctly against the 28-week maximum. Sickness periods of at least one full working day can link if they are eight weeks or less apart.

If an employee is not eligible, give them form SSP1 within seven days of their first day off sick. If SSP is expected to end before the sickness absence does, issue the form on or before the start of week 23. If entitlement ends unexpectedly while the employee is still sick, issue it within seven days.

Use the current SSP1 form for Great Britain. Employers in Northern Ireland should use the Northern Ireland version.

The Employment Rights Act 2025 widened access to SSP, particularly for low-paid and part-time employees.

The government estimated that removing the earnings threshold would extend SSP eligibility to up to 1.3 million low-paid employees.

The change gives eligible low-paid workers access to sick pay that was unavailable under the previous rules. The earnings-based calculation means their payment may be below the flat weekly rate.

These reforms also have a wider aim: to tackle the UK’s longstanding productivity slowdown.

The government expects better financial support to help employees take time off to recover. Potential benefits include:

• Reduced presenteeism – employees may feel less financial pressure to work while sick, reducing the risk of mistakes and accidents.
• Faster, more complete recovery – employees may be more productive after taking time off to fully recover.
• Lower risk of infection spread – especially in roles where staff work closely together.
• Improved morale and loyalty – staff may feel supported during sickness, which can help retention.

Alongside paying SSP correctly, employers need managers who can discuss sickness absence sensitively, recognise issues affecting attendance and support employees’ return to work.

Human Focus’s Sickness Absence Management training course explains practical approaches to managing absence and supporting employees. It covers:

• Causes of sickness absence and the physical, psychological and social factors that can influence it.
• Keeping absence records and recognising patterns that may need attention.
• Maintaining supportive communication and conducting return-to-work interviews.
• Considering workplace adjustments and agreeing return-to-work plans.

The CPD-certified course is fully online, giving managers a flexible way to develop their understanding of sickness absence management.