Statutory Sick Pay: Entitlements and Eligibility

Statutory Sick Pay (SSP) is the minimum amount employers must pay employees who are off work because of illness, provided they meet specific eligibility criteria. It is separate from contractual or occupational sick pay schemes, which some employers offer in addition to SSP. This article explains who qualifies for SSP, how it is calculated, when it starts and ends, notification requirements, exceptions and practical considerations for employees and employers.

What Is Statutory Sick Pay?

Statutory Sick Pay is a legally mandated payment that employers must provide to qualifying employees when they are unable to work due to sickness. SSP gives basic financial support during periods of incapacity for work and is payable up to a maximum period set by law. Employers cannot reduce SSP below the statutory minimum but may offer a more generous sick pay policy in a contract or workplace scheme.

Eligibility Criteria for SSP

To qualify for SSP, an employee must meet several conditions:

1. Employment Status

The person must be classed as an employee under UK law, typically working under a contract and paid through PAYE (Pay As You Earn). Agency workers and those on zero‑hours contracts can qualify as long as they meet the other conditions. Workers taxed through self‑assessment are not eligible for SSP.

2. Work and Contractual Conditions

The individual must have done some work under the contract of employment, even if only for a short time. This means they must have actually started working under the employment contract before sickness begins.

3. Average Weekly Earnings

Employees must earn on average at least £125 per week (before tax) in the relevant period immediately before sickness. This threshold is tied to National Insurance lower earnings limits and is crucial for eligibility.

4. Period of Incapacity for Work (PIW)

SSP is payable only when an employee has a period of incapacity for work of more than three days in a row, including non‑working days. This is often called the waiting period. SSP begins on the fourth qualifying day of sickness.

5. Notification and Proof

Employees must notify their employer that they are sick within any deadline set by the employer, or generally within seven days of the sickness starting. Employers may also request medical evidence (for example, a fit note) for sickness lasting more than seven days.

Amount and Duration of SSP

Weekly Rate

For the tax year 6 April 2025 to 5 April 2026, the SSP rate is £118.75 per week. This is paid for qualifying days - the days the employee would normally have worked - and is treated like wages for tax and National Insurance purposes.

How Much You Get:
SSP is usually worked out by dividing the weekly rate by the number of qualifying days an employee usually works. For example, a five‑day‑a‑week employee would receive £23.75 for each qualifying day they are off sick.

Maximum Duration

SSP can be paid for up to 28 weeks in a period of sickness. After 28 weeks, entitlement generally ends unless exceptional circumstances apply.

Qualifying and Waiting Days

• Qualifying days are the days an employee normally works and can attract SSP if sick.
• The first three qualifying days in a period of sickness are waiting days where SSP is not payable unless the sickness links to a recent period of incapacity for work within eight weeks.

Periods of incapacity separated by eight weeks or less may be linked, reducing the waiting days in subsequent sickness periods.

Special Rules for Different Employment Types

All types of employees who meet the basic eligibility are entitled to SSP, including those on:

• Casual or zero‑hours contracts;
• Short‑term and fixed‑term contracts.

However, rules on how long SSP is paid can vary depending on whether the employee has completed at least three months' continuous employment with the same employer. When an employee has less than three months' continuous service, SSP may only be payable until the end of the agreed working period or assignment.

Reporting Sickness and Fit Notes

Employees must tell their employer they're sick and unable to work in line with the employer's procedures (often within seven days of sickness start). For sickness periods of longer than seven days, a fit note from a registered healthcare professional may be requested by the employer as evidence of incapacity for work. This helps confirm the employee's entitlement to SSP.

When SSP Is Not Payable

Employees do not qualify for SSP if they:

• Have already received the maximum 28 weeks of SSP;
• Are receiving Statutory Maternity Pay or Maternity Allowance (special rules may apply);
• Are off sick in the four weeks before the week their baby is due (pregnancy‑related illness);
• Are in custody or on strike on the first day of sickness;
• Work outside the UK where the employer is not liable for UK National Insurance contributions;
• Have received Employment and Support Allowance within 12 weeks of starting or returning to work.

If an employee is not entitled to SSP or their entitlement ends, an employer must provide form SSP1 to support applications for benefits such as Employment and Support Allowance.

Contractual Sick Pay and Enhanced Schemes

Some employers offer contractual or occupational sick pay that is more generous than SSP and may provide full pay or higher percentages for a set period. These schemes must be included in the employee's contract. Contractual sick pay can run concurrently with SSP, but cannot reduce SSP entitlement. If a contract promises enhanced sick pay, the employer is obliged to honour it.

Interaction With Holiday Pay

Employees continue to accrue statutory annual leave while off sick, including SSP periods. Holiday can be taken during sickness or after return to work, subject to employer procedures.

Practical Considerations and Disputes

Employers should communicate sickness reporting and evidence requirements clearly in employee handbooks. If an employer fails to pay SSP to an eligible employee, the employee can raise the issue with HM Revenue and Customs (HMRC), which handles statutory payment disputes.

Future Reform

The UK Government has proposed reforms to SSP that are expected to expand eligibility and improve support by:

• Removing the three‑day waiting period so sick pay is payable from day one of absence; and
• Removing the lower earnings limit so low‑paid workers become eligible.

These changes are part of broader employment rights reforms, though they were subject to parliamentary processes at the time of writing and not yet law.

Key Takeaways

Statutory Sick Pay provides basic financial support for employees who are too ill to work, subject to eligibility requirements including earning an average of at least £125 per week and having a period of sickness lasting more than three days. Eligible employees can receive SSP at the statutory weekly rate - £118.75 for 2025/26 - for up to 28 weeks. Employers must follow correct reporting and pay procedures and may offer enhanced contractual sick pay in addition to SSP. Understanding entitlements, calculation methods, and eligibility helps both employees and employers manage sickness absence fairly and in compliance with UK employment law.