Statutory Sick Pay (SSP) is a legal requirement for UK employers, ensuring workers receive financial support during illness while reducing workplace transmission. Employers must pay eligible employees £123.25 per week—or 80% of their average weekly earnings, whichever is lower—from the first full day of absence for up to 28 weeks.
Eligibility and payment details
Employees qualify for SSP if they hold an employment contract and notify their employer within seven days of falling ill, or sooner if the company sets its own deadline. Payments start on the first full day off, with partial days excluded. Repeated absences within eight weeks for the same reason may be treated as a single period, with payments based on initial earnings.
Payments follow the same schedule as regular wages, subject to income tax and National Insurance deductions. Normal pay resumes immediately upon return. While tracking SSP isn’t mandatory, keeping absence records helps prevent disputes.
Some workers are excluded. Those who have already received 28 weeks of SSP, are on Statutory Maternity Pay, or were in custody or on strike on their first sick day cannot claim it. The same applies to employees receiving Employment and Support Allowance within 12 weeks of starting or returning to work. Pregnancy-related illnesses within four weeks of the due date are also ineligible.
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Agency workers may qualify, depending on their contract terms. The rules don’t cover employees not liable for National Insurance contributions.
Upcoming changes in 2026
From April 6, 2026, the £125 weekly earnings threshold will be abolished, extending SSP to workers previously excluded due to low wages. The Employment Rights Act 2025 also reduces the waiting period to the first full day of illness. The 28-week maximum and weekly cap remain unchanged.
This expansion means more part-time and low-wage workers will gain coverage. Holiday entitlement rules stay the same—employees continue accruing leave while off sick and can carry over unused days.
The adjustment acknowledges that short-term illnesses can create financial pressure, especially for lower earners. Small businesses may need to update payroll systems, though the core calculation—80% of average earnings or £123.25, whichever is lower—stays the same.
Employer obligations and best practices
Employers can offer more generous sick pay through contractual schemes but cannot pay less than the statutory minimum. Any enhanced scheme must be clearly stated in employment contracts.
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SSP doesn’t affect holiday pay. Workers accrue leave while on sick leave, and unused holiday due to illness can be carried over. This protects employees from losing time off because of illness.
The 2026 changes may add complexity for some businesses. The removal of the earnings threshold could increase claims, particularly in industries with many part-time or hourly workers. Employers should prepare by updating payroll systems and training managers on the new rules.
Reviewing employment contracts now—especially those referencing the old £125 threshold—can prevent confusion later. Clear communication with staff, particularly those previously ineligible, will help avoid misunderstandings when the rules change. Small businesses may find the adjustments easier with advance planning.
While SSP records aren’t legally required, detailed absence logs can resolve disputes. The aim is to balance compliance with fairness for both workers and employers.
