Pay Statutory Sick Pay

Since 6 April 2026, Statutory Sick Pay (SSP) has been payable from the first full day of sickness absence, whatever the employee earns.

How SSP works

The SSP rules since 6 April 2026:

Who is eligible

Employees covered

• Employees who have done some work under their contract
• Part-time workers earning less than the old Lower Earnings Limit (£125/week in 2025/26)
• Casual workers with low hours
• Workers on variable pay

Who does not qualify

An employee does not get SSP if they:

• have already had 28 weeks of SSP
• get Statutory Maternity Pay or Maternity Allowance
• are off with a pregnancy-related illness in the 4 weeks before the week their baby is due
• were in custody or on strike on the first day of sickness
• got Employment and Support Allowance within 12 weeks of starting or returning to work for you

When SSP starts

• SSP is paid from the first full day of sickness, with no unpaid waiting days
• A day does not count if the employee did any work that day
• SSP is paid for up to 28 weeks

Payroll system requirements

Your payroll system must be configured to:

1. Pay SSP from the first full qualifying day: There are no waiting days
2. No minimum earnings test: There is no lower earnings limit for SSP eligibility
3. Calculate 80% rate: For each employee, calculate 80% of average weekly earnings
4. Apply the lower rate: Compare the 80% calculation to the flat rate and pay the lower amount

Rate calculation examples

Policy and procedure updates

Review and update:

• Sickness absence policy: Ensure there are no references to waiting days or a lower earnings limit
• Employee handbook: Update SSP entitlement section
• Manager guidance: Train managers on the current rules
• Payroll procedures: Document the calculation process

Compliance checklist

1. Confirm payroll system is correctly configured for current SSP rules
2. Identify any employees who may not be receiving SSP correctly
3. Update sickness absence policies
4. Communicate SSP entitlements to employees
5. Train payroll staff and line managers
6. Review impact on sickness absence budgets
7. Consider impact on occupational sick pay schemes

If you do not pay SSP correctly

HMRC deals with SSP disputes and penalties. These are civil penalties, not criminal fines.

• If an employee does not qualify: send them form SSP1 within 7 days of their first day off sick. An employee who thinks this is unfair can appeal to HMRC, which decides questions of entitlement. HMRC may ask to see your sickness absence records if there is a dispute.
• Refusing to pay: if you refuse, or repeatedly fail, to pay SSP to an employee as the regulations require, you are liable to a penalty of up to £3,000.
• Documents and information: if you do not produce a document or record, or give information, that the SSP regulations require, the penalty is up to £300, plus up to £60 for each day the failure continues after that penalty is imposed.
• Fraud or negligence: fraudulently or negligently making an incorrect statement about entitlement, or an incorrect payment of SSP, carries a penalty of up to £3,000.