United Kingdom
Make employment in the United Kingdom easy. Let us handle payroll, benefits, taxes and compliance. Benefit from a personalised service, and direct contact with our expert team.
UK Statutory Sick Pay (SSP): What Employers Must Know
When an employee in the UK calls in sick, you have a legal obligation to pay them Statutory Sick Pay, provided they meet the eligibility criteria. SSP is not optional. It is a statutory minimum that every UK employer must pay, and getting it wrong can land you in front of an employment tribunal.
The rules have changed too. From 6 April 2026, the three-day waiting period was removed, so employees are now entitled to SSP from the first day of sickness. This is a significant shift that international employers need to plan for.
This guide covers everything you need to know: the current SSP rate, who qualifies, how the April 2026 changes work, your obligations as an employer, and how an Employer of Record manages it all on your behalf.
Agility EOR handles SSP and all statutory pay obligations as part of our Employer of Record service. For the bigger picture on UK employment law, visit our employment law hub.
What Is Statutory Sick Pay and How Much Do You Have to Pay?
Statutory Sick Pay is the minimum amount UK employers must pay eligible employees when they are too ill to work. It is governed by the Social Security Contributions and Benefits Act 1992 (Part XI, Chapter I) and the Statutory Sick Pay (General) Regulations 1982.
The current SSP rate for the 2026/27 tax year is £123.25 per week (or 80% of the employee's average weekly earnings, if lower). SSP is payable for up to 28 weeks in any period of sickness.
That £123.25 figure is weekly, not daily. If an employee is sick for four days, they receive a proportion of the weekly amount, not four times a daily rate. SSP is calculated on a daily basis by dividing the weekly rate by the number of qualifying days in the week (typically the days the employee would normally work).
Here is a practical example.
An employee earns £40,000 per year and is off sick for two weeks. You must pay them £123.25 per week in SSP, regardless of their salary. For anyone earning above that level, SSP works as a flat rate, not a percentage of earnings (lower earners receive 80% of their average weekly earnings instead). Many employers top up SSP with company sick pay as part of their benefits package, but the statutory minimum is just that rate.
SSP is subject to tax and National Insurance contributions. It is paid through PAYE in the same way as normal wages.
The Old Waiting Period (Removed April 2026)
Until 6 April 2026, SSP did not kick in immediately. There was a three-day waiting period, often called "waiting days." This meant an employee had to be off sick for at least four consecutive days (including non-working days) before SSP became payable, starting from the fourth day of sickness.
So if someone is off sick for a Monday, Tuesday, and Wednesday and comes back on Thursday, they receive no SSP. If they are off Monday to Friday, they receive SSP for Thursday and Friday only.
This waiting period had been part of SSP since its inception and was one of the reasons SSP was often seen as inadequate by employees and unions. A three-day absence is common, which meant many short-term sicknesses resulted in no statutory pay at all.
What Are the April 2026 Changes to SSP?
The Employment Rights Bill 2024, which received Royal Assent on 18 December 2025 and is being implemented in stages, makes several changes to SSP. The most significant change, which took effect from 6 April 2026, is the removal of the three-day waiting period.
SSP is now payable from the first day of sickness, with no waiting days.
Day-one entitlement
An employee who calls in sick on Monday will be entitled to SSP from Monday, not from Thursday as currently.
No minimum absence length
Even a one-day absence will qualify for SSP, proportionally calculated.
Higher cost for employers
Every short-term sickness absence will now generate an SSP obligation. For companies with frequent short absences, this adds up.
The April 2026 changes also removed the earnings threshold for SSP eligibility. Previously, employees had to earn at least the Lower Earnings Limit (LEL) to qualify for SSP. That requirement no longer applies, so lower-paid workers who were previously excluded now qualify, receiving the lower of £123.25 per week or 80% of their average weekly earnings.
For international employers, these changes are important to factor into your UK employment budget. If you are planning to hire a UK team in 2026, the cost of sickness absence will be higher than in previous years.
Want to understand how SSP interacts with other statutory pay obligations? Read our guide on UK maternity leave and our overview of PAYE explained.
Who Is Eligible for SSP?
To qualify for SSP under the current rules, an employee must meet all of these criteria:
They must be classified as an employee or a worker who is subject to a contract of employment. Agency workers may qualify depending on the nature of their engagement.
There is no longer a minimum earnings requirement: the Lower Earnings Limit test was removed from 6 April 2026 (SSP is the lower of £123.25 per week or 80% of average weekly earnings).
There is no longer a minimum number of sick days: the old rule requiring at least four consecutive days of sickness was removed from 6 April 2026.
They must notify you of their sickness in accordance with your company's absence reporting procedure, or within seven days if you have no specific procedure.
If the sickness lasts more than seven consecutive days, the employee must provide a fit note (formerly called a sick note) from a healthcare professional. For absences of seven days or fewer, the employee can self-certify.
Some workers are excluded from SSP:
- Employees who have already received 28 weeks of SSP and have not returned to work
- Employees who are in receipt of certain maternity allowances
- Employees who are pregnant and within four weeks of their expected week of childbirth (they should be claiming Maternity Allowance instead)
- Employees serving a prison sentence
- Employees who are off sick during a period of statutory maternity, paternity, adoption, or shared parental leave
Linked Periods of Sickness
If an employee has repeated bouts of sickness, the rules around "linked periods" become relevant. Periods of sickness are linked if:
- Each period lasts four or more consecutive days (note: this rule changed with the April 2026 removal of the waiting period)
- There are eight weeks (56 days) or fewer between the end of one period and the start of the next
If periods are linked, they are treated as one continuous absence for the 28-week SSP entitlement. Once an employee has had 28 weeks of SSP across linked periods, they are no longer eligible and must have a break of at least eight weeks before their SSP entitlement resets.
What Are Your Obligations as an Employer?
Your obligations under SSP are straightforward but non-negotiable.
You must pay SSP on the employee's normal payday, in the same way you pay their normal wages. Delaying SSP payments is a breach of your obligations.
There is no longer a specific SSP record-keeping requirement (it was abolished in April 2014), but you must still keep general payroll records, including SSP payments, for at least three years after the end of the tax year to which they relate. Keeping a note of absence reasons and dates is good practice.
When an employee's SSP runs out (after 28 weeks), you must give them form SSP1 within seven days. This form allows the employee to apply for Employment and Support Allowance (ESA) from the government.
When an employee provides a fit note, you must keep it on file and follow its recommendations regarding the employee's fitness to work.
Pressuring a sick employee to return to work prematurely could give rise to a constructive dismissal claim under the Employment Rights Act 1996.
If the sickness relates to a disability under the Equality Act 2010, you may have a duty to make reasonable adjustments to support the employee's return to work.
Unlike some other countries where the state reimburses sick pay, in the UK the full cost of SSP falls on the employer. This is why some companies choose to offer enhanced company sick pay policies that provide more than the statutory minimum, often with a cap on duration.
How Does SSP Interact with Company Sick Pay?
Many employers offer company sick pay (also called contractual sick pay or occupational sick pay) on top of or instead of SSP. This is entirely voluntary, unless it is written into the employee's contract.
The typical arrangement looks like this:
- The company offers full pay for a set period of sickness (for example, four weeks per year)
- After the company sick pay period ends, the employee reverts to SSP only
- Once SSP runs out (after 28 weeks), the employee may be eligible for ESA from the government
If you do offer company sick pay, you must pay it in accordance with the terms of the employee's contract. You cannot unilaterally reduce or remove it during a period of sickness. Doing so would be a breach of contract.
You can, however, pay company sick pay less any SSP the employee is entitled to. In other words, SSP can be treated as part of your overall sick pay package rather than being paid on top of it. This is common and perfectly lawful, provided it is clearly stated in the employment contract.
Should you offer enhanced sick pay?
For competitive employers in the UK market, a generous sick pay policy is an attractive benefit. It signals that you care about employee wellbeing and can reduce the incentive for employees to come to work when they are genuinely ill (presenteeism), which costs businesses more in lost productivity than actual absence does.
How Does an Employer of Record Manage SSP?
When you use an Employer of Record like Agility EOR, SSP is handled entirely for you. The EOR is the legal employer of your UK workers. This means the obligation to pay SSP falls on the EOR, not on you. When an employee calls in sick, the EOR's HR and payroll team takes over the process.
Here is what that looks like in practice
The employee reports their absence to their manager (which may be you or someone on your team). The EOR handles the administrative side: recording the absence, calculating SSP payments, processing them through payroll, managing fit notes, and issuing SSP1 forms when required.
If the sickness is long-term, the EOR manages the absence process in compliance with UK employment law, including any reasonable adjustments if the absence relates to a disability. If the absence becomes a performance or capability issue, the EOR advises on the correct procedure, ensuring you do not fall foul of unfair dismissal rules.
For international employers unfamiliar with UK sick pay obligations, the EOR model removes the risk entirely. You do not need to understand the intricacies of the Social Security Contributions and Benefits Act 1992. You do not need to worry about the April 2026 changes. The EOR handles it.
And importantly, because the EOR is the employer, any tribunal claims related to sick pay or absence management are directed at the EOR, not at you.
For a full overview of how Agility EOR handles all UK statutory pay obligations, visit our EOR UK service page.
Agility EOR is far more than just a service provider. We’re flexible, innovative and focused on outstanding client service. Supporting you every step of the way – and valuing your people as the cornerstone of success.
Frequently Asked Questions
The current SSP rate for the 2026/27 tax year is £123.25 per week, or 80% of the employee's average weekly earnings if that is lower. SSP is payable for up to 28 weeks.
Yes. Since 6 April 2026 the three-day waiting period has been removed, so SSP is payable from the first day of sickness.
Yes, but most employers structure their company sick pay to include SSP rather than paying it on top. For example, if your company sick pay is £500 per week, you can pay the SSP element as part of that £500 rather than in addition to it. This must be clearly stated in the employment contract.
Once an employee has received 28 weeks of SSP, you must issue form SSP1 within seven days. The employee can then apply for Employment and Support Allowance (ESA) from the government. You are not required to continue paying SSP beyond 28 weeks.
For absences of seven consecutive days or fewer, the employee can self-certify their sickness. For absences longer than seven days, a fit note from a healthcare professional is required. You should keep fit notes on file.
Speak to an expert
Agility EOR makes UK statutory pay obligations simple. We handle SSP, maternity pay, holiday pay, and every other statutory requirement so you can focus on growing your team. Learn more about our UK EOR service.