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Sickness is an inevitable part of life - and work. But it doesn't need to be complicated or difficult for SMEs to manage.
In this blog, we're covering what Statutory Sick Pay is, who qualifies for it, and current rates of sick pay.
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What is Statutory Sick Pay (SSP)?
Statutory Sick Pay was first introduced in the UK in 1983 when employers became responsible for paying sick pay for the first eight weeks of illness. This was extended to the current 28 weeks in 1985.
The idea behind SSP is to offer a safety net for staff who are off sick for four or more days so they can recover, safe in the knowledge they are still being paid some money even if they’re unable to work. This peace of mind can aid in recovery by reducing stress and worry over lack of income.
As long as your workers are eligible, they have a statutory right to receive SSP - regardless of the size of your business.
Does an employer legally have to pay SSP?
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Employers are required to pay SSP contributions for staff that meet the eligibility criteria.
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Employees qualify for SSP after 4 days off work sick (although from 6 April 2026, this becomes a day-one right, removing the 3-day waiting period).
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A medical or FIT note is required.
How much is Statutory Sick Pay?
The weekly rate of SSP in the UK for the 2025/26 tax year is £118.75.
For the 2026/27 tax year, the weekly rate of SSP in the UK is £123.25 or 80% of the worker's average weekly earnings, whichever is lower.
Average weekly earnings should be calculated based on the 8 weeks before the employee's sickness absence.
SSP is paid for up to 28 weeks and is paid in the same way as normal pay with tax and national insurance deducted by the employer.
You may still have to pay SSP even if you stop trading. An employee's entitlement to SSP only ends when their contract of employment ends so you remain liable for SSP payments up to the end of that contract. If you become insolvent you remain liable for SSP up to the date of insolvency. After that date, if an employee's contract of employment has not been terminated, then HMRC will make the payments.
You can't force your workers to take annual leave in place of SSP.
Not sure what SSP works out to for your employees? Use our free SSP calculator to check the figures quickly.
Transactional protection: what happens if a worker is already off sick on 6 April 2026?
If a worker's sickness started before 6 April 2026 and continues beyond that date, the rules around SSP are a little different.
Some workers will be transactionally protected, which means their sick pay won't go down as a result of the law change.
This applies to workers who:
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Earn between £125 and £154.05 per week
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Are already receiving Statutory Sick Pay before 6 April 2026
If both conditions aren't met they'll continue to receive the flat rate of £123.25 per week, rather than having their pay recalculated under the new 80% of average weekly earnings rule.
This protection stays in place until one of the following happens, whichever comes first:
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They return to work
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They've received Statutory Sick Pay for 28 weeks
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Their employment ends
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They start receiving Statutory Maternity Pay or maternity allowance
If they do return to work and then go off sick again within 8 weeks, the normal 2026/27 rules will apply for that second period. They'll receive whichever is lower: £123.25 per week or 80% of their average weekly earnings.
Who qualifies for SSP?
Currently, workers need to earn at least £125 a week to qualify for SSP. But from 6 April 2026, the Lower Earnings Limit will be removed entirely, meaning there is no minimum earning threshold for employees to qualify for SSP.
Here's what else they need to qualify:
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Be classed as an employee and have an up-to-date contract of employment.*
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Proof of completing work under that contract.
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Off work with ill-health for four or more consecutive days, including non-working days (the first three days are currently considered waiting days and are not eligible for SSP, but this is changing from 6 April 2026 under the Employment Rights Act, so that SSP will start from day-one).
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Earn an average of at least £123 a week (from 6 April 2026, the Lower Earnings Limit will be removed, extending SSP payments to the lowest-paid workers).
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Notify their employer of their sickness in-line with the company policy. If there is no defined policy on sickness notification, then they must notify you within seven days. You don't have to pay SSP for any days they were late in telling you unless there is a good reason for why they were late. You cannot insist they tell you in person or use a special form.
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Provide evidence of sickness only after seven days off. For the first seven days, self-certification suffices. After this point, you can ask for proof in the form of a fit note. Fit notes can be certified by doctors, nurses, occupational therapists, pharmacists and physiotherapists. Even if the employee is late in supplying proof, it's illegal to withhold SSP.
*Take note that zero-hours contract workers can still claim SSP if they meet eligibility criteria but workers on self-assessment are not eligible for SSP.
Paying staff who are off sick
Paying sick pay is a legal requirement for any UK business and provides employees with financial back up during recovery.
By law, employers are required to offer the minimum SSP to qualifying workers. At £118.75 per week - that's before tax and NI deductions - the minimum SSP doesn't exactly provide the financial security you'd hope.
Fortunately, there are some organisations that recognise this is behind the National Minimum Wage, not to mention National Living Wage. A sum so blunt it doesn't cut the mustard, let alone pay the bills. And don't worry, we're not moaning purely for whining's sake. It all comes back to your people. If you're not careful, employees who require SSP could find that the financial implications and increased stress only impacts them further.
It's not all doom and gloom. We've found that most people-focused organisations avoid high staff-turnover and safeguard their team by adding an higher entitlement wage for their occupational sick pay scheme.
What is occupational sick pay?
Statutory Sick Pay is the minimum amount employers must pay, while occupational sick pay can be more generous. This is when you choose to offer more than SSP to your staff as part of their benefits package and it's normally an amount based on their normal pay. For example, you might offer full pay for the first eight weeks of sick leave and then half pay or statutory pay only for the remaining 20 weeks. It is entirely up to you.
The qualifying criteria is up to you to decide (and will vary from business to business), but you might have a minimum period of service in place. You may also choose different schemes to suit each type of worker e.g. management/manual workers etc.
We suggest laying out the policy for your occupational health pay scheme in a worker’s employment contract and/or staff handbook. Explain the scheme, any qualifying period of service required, how sickness is recorded and how long the scheme operates for. It's also wise to explain what happens when occupational sick pay runs out and any exclusions, such as professional sports injuries or working for private gain for another company.
Using software to manage sickness
We've covered SSP basics in terms of employer and employee rights. But we all know that sickness is an inevitable hurdle for any person, family or business.
That's why it's good to have a system like Breathe where employees can log their own sickness and HR can track and report on sickness trends. Take a look for yourself.
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