What is Statutory Sick Pay (SSP) for UK employers?

For growing UK businesses, managing Statutory Sick Pay (SSP) is a legal and financial challenge, and a key requirement that connects payroll and HR to staff welfare.

Getting SSP wrong risks non-compliance and labour tribunals. For HR and finance managers, understanding the rules is therefore essential.

This guide covers the rules of SSP, who is eligible, how to process it, and future reforms. And we’ll outline all the criteria to help you manage staff absences compliantly.

What are the fundamental rules of statutory sick pay?

Statutory sick pay is the legal minimum employers must pay a staff member who cannot work due to illness. It is a legal obligation set by the government and updated annually. Your duty, as an employer, is to check eligibility, process the pay via payroll, and make correct tax and NI deductions.

Who is eligible for SSP?

Employees are entitled to SSP if they:

1. Are classed as an ‘employee’ (including those on fixed-term or zero-hours contracts);

2. Have started their employment;

3. Are sick for 4 or more consecutive days (a ‘Period of Incapacity for Work’, or PIW), including non-working days;

4. Earn an average of at least the Lower Earnings Limit (LEL) - £125 per week for 2025/26;

5. Notify you of their absence per your policy (or within 7 days); and

6. Are able to provide proof of illness (such as a fit note after 7 days).

Who is not eligible for SSP?

Employees are not eligible if they:

• Earn less than the Lower Earnings Limit;

• Have exhausted their 28-week SSP allowance;

• Are receiving Statutory Maternity Pay or Maternity Allowance; or

• Are in legal custody (for example, detained by the police).

If ineligible, you must give them an SSP1 form, which they will need to claim other financial benefits like Universal Credit.

How much is statutory sick pay, and for how long is it paid?

Managing SSP requires precise calculations of the rate, waiting period, and duration.

What is the current SSP rate?

The SSP rate for 2025/26 is £118.75 per week. This flat rate is paid for ‘qualifying days’ (i.e. normal working days). You then pay a daily rate for each day they are off after the waiting period.

What are waiting days?

SSP is not paid for the first 3 qualifying days of an absence, called ‘waiting days’ (WDs). Payment then begins on the fourth day. This rule applies to each new absence, unless it’s ‘linked’ to a previous one.

What are linking periods?

Sickness periods are ‘linked’ if each lasts 4 or more days and they are 8 weeks (56 days) or less apart. Linked periods are treated as one. This means:

• The 3 waiting days are not needed again.

• All days count towards the 28-week limit.

Tracking linked periods is a major admin burden, making payroll software essential.

For how long can an employee claim SSP?

An employee can claim SSP for up to 28 weeks in a single or ‘linked’ period of absence, including what is classed as ‘long-term sick leave’. When this allowance ends, your obligation to pay stops. You must issue an SSP1 form by the 23rd week so that the worker has time to arrange other support.

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What are an employer’s responsibilities for managing SSP?

Your duties extend beyond payment to include proof of illness, payroll processing, and record-keeping.

What proof of sickness is required?

You need to make sure you have a clear absence reporting policy, including the following variable requirements:

• First 7 days: Self-certification, e.g. by phone, email, or using an internal form.

• After 7 days: A fit note is required, under UK sick pay entitlement rules. This note states whether the worker is ‘not fit for work’, or ‘may be fit for work’ with certain adjustments made.

You cannot demand a fit note before the eighth day of illness.

How do you process SSP payments through payroll?

SSP is paid on the normal payday, and is subject to PAYE and National Insurance. A modern payroll software automates all of these SSP calculations and deductions.

What records do employers need to keep?

You must keep detailed SSP and absence records for at least 3 years after the relevant tax year. As the Gov.UK guidance on employers’ responsibilities states, these must include:

• Dates of the leave.

• All fit notes and self-certification forms.

• Copies of any SSP1 forms issued.

• Records of all SSP payments.

HMRC can request these records at any time.

What is the difference between SSP and contractual sick pay?

SSP is the legal minimum you must pay. Contractual Sick Pay, also called Occupational Sick Pay (OSP), is an optional, more generous benefit in an employment contract (e.g. 4 weeks full pay).

Your contractual scheme must be at least as generous as SSP. The contractual payment usually includes the SSP amount (e.g. SSP plus a ‘top-up’ to equal full pay).

What happens when statutory sick pay ends?

When SSP ends (at 28 weeks, or if eligibility ceases), your responsibility shifts to providing information for state support.

 What is an SSP1 form?

You must give an SSP1 form to your staff member within 7 days of SSP ending unexpectedly, or by the 23rd week if the limit is approaching. They will need this form in order to claim state benefits.

 What other financial support is available?

When SSP ends, employees still unable to work may claim government support, such as Universal Credit (UC) or the ‘new style’ Employment and Support Allowance (ESA). You can find details on the official gov.uk page for ESA. Your key role is to provide the SSP1 form promptly.

What future reforms are planned for SSP?

The UK government is planning major reforms to statutory sick pay, expected to take effect in April 2026. The changes are part of the new Employment Rights Bill, and will significantly widen the SSP safety net.

The key proposals employers must prepare for are:

• Removal of the Lower Earnings Limit (LEL): This will make all employees eligible for SSP, regardless of how much they earn.

• Abolition of waiting days: The 3-day waiting period will be removed, meaning SSP will be payable from the first day of absence.

• New rate for low earners: Those earning below the LEL will receive a new statutory rate, likely 80% of their earnings (up to the flat SSP rate).

These reforms will, of course, significantly impact payroll processing and company costs.

How can payroll software help manage SSP compliance?

The SSP admin burden is significant. Manually tracking absences, linked periods, and calculations is risky. Automated tools and compliance checklists are therefore essential in order to ensure:

• Accuracy: A payroll system automates eligibility and pay calculations, including linked periods.

• Compliance: The software stays updated with statutory rates and tax rules.

• Record-keeping: It creates an automatic, auditable trail.

• Efficiency: It frees up HR and finance department time.

PayFit’s payroll software handles SSP complexities seamlessly. Understanding the intricacies of SSP and leave and absence management is the only first step, implementing a robust system is the next.