How to calculate Statutory Sick Pay in 2026/2027?

The Statutory Sick Pay (SSP) rate got a boost for the tax year starting in April 2025. Here’s what employers should check regarding the amount and how it is calculated for staff up until at least April 2026.

What is the Statutory Sick Pay rate?

Statutory Sick Pay (often just called SSP) is the basic sum a UK worker gets when absent from duties due to ill health.

Be sure not to confuse SSP with Occupational Sick Pay (OSP). Note that while SSP is a basic right for every UK worker, it’s entirely up to you as a business if you’d also like to offer OSP. That said, we recommend that you set up an OSP scheme,  as it’s generally a good idea to have one.

Important changes from April 2026: The Employment Rights Act 2025 has introduced significant reforms to SSP, making it more accessible and beneficial for employees:

• Universal eligibility: All employees now qualify for SSP, regardless of their earnings level

• Day one entitlement: The three 'waiting days' have been abolished - employees receive SSP from the first day of sickness

• Enhanced protection: For employees earning below the flat rate, SSP is calculated as the lower of £123.25 or 80% of their average weekly earnings

These changes represent the most significant update to Statutory Sick Pay in decades and require immediate payroll system updates.

How is SSP calculated in the UK?

Put simply, how much a staff member gets in the UK depends on the number of ‘qualifying days’ they have worked each week.

From April 2026, SSP calculation has changed significantly:

No more waiting days: Employees receive SSP from the first qualifying day of sickness. The previous rule requiring a 4-day Period of Incapacity with 3 unpaid waiting days has been abolished.

Here are the two calculation methods:

1. For employees earning £123.25/week or more: Pay the full weekly rate of £123.25, divided by qualifying days worked per week

2. For employees earning less than £123.25/week: Pay the lower of:

   • £123.25 per week, OR

   • 80% of their average weekly earnings

This ensures all employees receive sick pay support, regardless of their earnings level.

What are the current SSP rates for 2026/2027?

The figures for the year 2026/27 are as follows:

These rates apply from 6 April 2026. Remember, with the abolition of waiting days, SSP is now payable from day one of illness, making accurate daily rate calculations even more critical for payroll compliance.

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How much is the weekly Statutory Sick Pay in the UK? 

The standard weekly figure for 2026/27 is £123.25, representing a 3.8% increase from the 2025/26 rate of £118.75. This increase is based on the September 2025 Consumer Prices Index (CPI). For the latest official rates, check the gov.uk SSP page.

Who has the right to Statutory Sick Pay?

From April 2026, SSP eligibility has been significantly expanded.

All employees now qualify for SSP if they:

• Have an employee contract with your company (i.e. are recognised as staff)

• Have already started duties under their contract

• Are genuinely ill for one or more days (no minimum period required)

• Notify you that they've been absent due to illness (and provide proof if requested)

⚠️ Critical changes:

• Lower Earnings Limit (LEL) removed: Previously, employees needed to earn at least £125/week. This barrier has been abolished - all employees now qualify regardless of earnings

• No waiting days: The requirement for 4 consecutive days of illness with 3 unpaid waiting days has been abolished - SSP is now payable from day one

• Low earner protection: For employees earning below £123.25/week, SSP is calculated as 80% of their average weekly earnings

These reforms, introduced via the Employment Rights Bill, represent a fundamental shift in UK sick pay entitlement.

When do employees not qualify for SSP?

A staff member isn’t entitled to funds in the UK if:

• They’ve already received SSP up to the 28-week limit;

• They’re receiving Statutory Maternity Pay or Allowance;

• They’re pregnant and off for any illness related to their pregnancy within four weeks before the one in which their baby is due;

• They spent the first day of their illness in custody or involved in a strike;

• They work outside the EU and are not liable for UK National Insurance contributions;

• They already received Employment and Support Allowance within their first 12 weeks in your employ.

You’ll need to give employees who are not eligible an SSP1 Form. Individuals can use this document to apply for Universal Credit and Employment and Support Allowance.

How do I calculate the SSP rate for my staff?

You can calculate the figure for your team in two ways: manually or by using payroll software.

With the abolition of waiting days from April 2026, SSP calculations are now simpler but require attention to low earner provisions.

How can software help?

Remember when we mentioned there were two ways to calculate SSP - one being manual and the other using software?

The latter is a much more convenient way to calculate SSP in the UK, and can save your team oodles of effort normally wasted on painstaking manual calculations.

Plus, payroll software automatically tracks and applies changes to SSP rates.

You can also use it to calculate your staff’s Statutory Sick Pay and Sickness deductions automatically when you indicate that a person is off sick. Now that’s pretty handy.

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