This guide is maintained as a current resource for September 2026 and covers only the laws of England and Wales. Information is for general guidance, not legal advice. Consult a qualified solicitor for advice specific to your situation.
Understand how UK employers must administer Statutory Sick Pay (SSP) correctly, including eligibility checks, calculating qualifying days, payroll reporting, record‑keeping requirements, and resolving disputes. This practical guide helps employers meet their legal duties under current SSP rules in England and Wales.
Employers in England and Wales have a statutory obligation to manage and pay Statutory Sick Pay (SSP) when eligible employees are off work due to illness. Administering SSP correctly helps protect employers from disputes, financial penalties, and potential claims. This guide sets out clear steps and practical insights based on official guidance and standard payroll practice, showing employers what they must do, how to calculate SSP, and how to manage the process effectively.
Introduction
Statutory Sick Pay is a legal entitlement under UK law that employers must pay to qualifying employees. It exists to provide a minimum level of income support for workers who cannot work due to sickness. The duty to administer SSP correctly involves understanding eligibility, calculating entitlement, maintaining accurate records, and complying with reporting obligations. Errors in SSP administration can lead to employee disputes, tribunal claims, or scrutiny by HM Revenue & Customs (HMRC).
Understanding Statutory Sick Pay
What Is SSP?
Statutory Sick Pay is the minimum sick pay an employer must provide to qualifying employees who are off sick for a qualifying period. The current weekly rate for SSP is £118.75, and it can be paid for up to 28 weeks for each period of sickness. SSP is paid only for the days the employee would normally have worked, known as qualifying days.
Employers can choose to offer enhanced sick pay above the statutory minimum (known as contractual, occupational or company sick pay), but cannot offer less than the statutory entitlement.
Eligibility Criteria
An employer must first check if an employee qualifies for SSP. To be eligible:
- The worker must be classed as an employee with earnings taxed through PAYE.
- They must have done some work under their contract before sickness.
- They must have been sick for at least four days in a row (including non‑working days).
- They must meet the average earnings threshold (currently £125 per week).
An employee must also notify their employer of sickness within the employer's deadline or within seven days if no deadline is set. Employers may require proof of sickness, such as a fit note after seven days of absence, but must not impose unreasonable notification rules.
Step‑by‑Step SSP Administration
Step 1: Establish Sickness Reporting Procedures
Employers should have clear internal procedures detailing:
- How employees should report sickness.
- The timing required for notifications.
- Whether and when fit notes or proof of incapacity are needed.
While employers can set reasonable reporting rules, they cannot demand notification before the first qualifying sick day or insist notification be in person, on a specific form, or at a set time that contradicts statutory restrictions.
Step 2: Determine Eligibility
Once notified of sickness, assess whether the employee qualifies for SSP:
- Confirm the sickness period is long enough (four or more consecutive days).
- Check qualifying days - those on which the employee normally works.
- Verify average weekly earnings meet the minimum threshold.
If the employee does not qualify, the employer must provide them with an SSP1 form or a written explanation of why they do not qualify, within seven days of the first day of sickness. This helps the employee claim alternative benefits, such as Universal Credit or Employment and Support Allowance.
Step 3: Calculate SSP Amounts
Identify Qualifying Days
Only days the employee would normally have worked are qualifying days for SSP. If the employee has an irregular pattern or part‑time schedule, employers should agree qualifying days with them to ensure consistency. SSP is payable after the qualifying waiting period and only for those agreed qualifying days.
Apply Waiting Days
Under current rules, SSP is not payable for the first three qualifying days in a period of incapacity for work. These are waiting days and are based on qualifying days, not every calendar day. However, the government has announced changes that are expected from April 2026 which will remove waiting days and extend eligibility regardless of earnings, so employers should prepare for revised calculations.
Calculate Pay
SSP is paid at the weekly rate and pro‑rata'd for the number of qualifying days per week. Employers can use HMRC's SSP calculator or manual calculations to determine the correct amount. For irregular patterns, a daily rate calculated from the weekly rate can be applied.
Step 4: Process Through Payroll and Report to HMRC
SSP payments must be processed through the employer's payroll system with appropriate deductions for tax and National Insurance. SSP must be included in the Real Time Information (RTI) payroll submissions to HMRC on or before payday, ensuring that gross pay and statutory deductions reflect the SSP correctly.
Step 5: Record‑Keeping
Even though HMRC does not require a specific format for SSP records, employers must keep accurate documentation:
- Dates and duration of sickness periods.
- SSP amounts paid.
- Evidence of employee notifications and fit notes.
- Copies of SSP1 forms issued.
Records should be retained for at least three years from the end of the relevant tax year to support compliance and defend against any disputes or HMRC enquiries.
Common Administration Challenges
Linked Periods of Sickness
If separate sickness periods are within eight weeks of each other, they may be treated as linked for SSP purposes. This can affect waiting days and eligibility, especially when calculating how much SSP is payable.
Interplay With Contractual Sick Pay
Employers that offer enhanced contractual sick pay programmes must clearly distinguish these from statutory entitlements. Contractual sick pay terms do not replace SSP but may run concurrently or offer additional benefits. The employment contract should state how enhanced sick pay interacts with SSP.
Disputes and Corrections
If an employee believes they have not received SSP correctly, they can contact HMRC's Statutory Payment Disputes Team. Employers should respond promptly to resolve issues and correct underpayments. Overpayments should be handled in accordance with lawful deduction rules under the Employment Rights Act 1996.
Key Employer Responsibilities Summary
To administer SSP correctly, employers must:
- Understand and verify eligibility conditions.
- Set reasonable sickness reporting procedures.
- Accurately determine qualifying days and waiting periods.
- Calculate SSP correctly and run it through payroll.
- Report payments to HMRC via RTI.
- Keep detailed records for at least three years.
- Issue SSP1 forms when eligibility does not apply or when entitlement ends.
Key Takeaways
Administering Statutory Sick Pay correctly requires attention to detail, accurate record‑keeping, and compliance with statutory requirements. Employers must set clear sickness reporting rules that comply with legal limits, assess eligibility properly, calculate SSP based on qualifying days, and process payments through payroll. Maintaining comprehensive records helps protect against disputes and ensures compliance with HMRC reporting obligations. Employers should also be aware of upcoming changes to SSP rules which will broaden eligibility and simplify calculations. Proper administration reduces the risk of claims or disputes and supports fair and lawful treatment of sick employees.
