Statutory Sick Pay for employers

Who qualifies for SSP

An employee qualifies for SSP if they meet all of these conditions:

• They are an employee (not self-employed) — agency workers also qualify through their agency
• They have done some work under their contract of service
• Their average weekly earnings are at or above the Lower Earnings Limit (£125 per week for 2026/27) — calculated over the 8-week period ending with the last normal payday before sickness started
• They have been sick for 4 or more consecutive days (including non-working days such as weekends) — this is called a Period of Incapacity for Work (PIW)
• They have told you they are sick within your notification deadline (or within 7 days if you have not set one)

When SSP does not apply

You do not have to pay SSP if the employee:

• Has already received 28 weeks of SSP from you
• Received Employment and Support Allowance within 12 weeks before their sickness
• Is on strike
• Is pregnant and within the disqualifying period (18 weeks before the expected week of childbirth to the end of maternity leave)
• Is in legal custody

If the employee does not qualify, you must give them form SSP1 immediately so they can claim Employment and Support Allowance or Universal Credit.

Qualifying days and waiting days

Qualifying days are the days an employee normally works, as agreed with you. If there is no agreement, qualifying days default to Monday to Saturday. There must be at least one qualifying day per week.

Waiting days: the first 3 qualifying days in a PIW are unpaid. SSP is payable from the 4th qualifying day onwards. Waiting days are waived if the employee received SSP from you within the last 8 weeks (56 days) and that earlier period already included waiting days.

From April 2026: the Employment Rights Act 2025 removes waiting days entirely — SSP will be payable from day one of sickness.

Calculating and paying SSP

Calculate the daily rate by dividing the weekly SSP rate by the number of qualifying days in the week.

Example: if an employee has 5 qualifying days, the daily rate is £123.25 ÷ 5 = £24.65. If they have 3 qualifying days, it is £123.25 ÷ 3 = £41.08.

Pay SSP for each qualifying day the employee is off sick, starting from the 4th qualifying day. Pay it through your normal payroll — SSP is treated as earnings and you must deduct tax and National Insurance as usual.

You cannot reclaim SSP from HMRC. The SSP Percentage Threshold Scheme was abolished in April 2014. Employers now bear the full cost of SSP.

Fit notes

For the first 7 calendar days of sickness (including non-working days), employees self-certify. You cannot demand a fit note during this period.

After 7 days, a fit note (Statement of Fitness for Work) is required. Since July 2022, fit notes can be issued by doctors, nurses, occupational therapists, pharmacists, and physiotherapists. They can be issued and provided electronically.

If the fit note says 'may be fit for work'

The healthcare professional may recommend adjustments such as:

• A phased return to work
• Altered hours
• Amended duties
• Workplace adaptations

You should discuss these with the employee. If you cannot accommodate the suggestions, treat the fit note as if it said 'not fit for work' and continue paying SSP.

If the employee is disabled under the Equality Act 2010, you have a legal duty to make reasonable adjustments.

Linked periods of incapacity

If an employee has two or more periods of sickness separated by 8 weeks (56 days) or less, they are linked and treated as one continuous PIW. This means:

• Waiting days from the first period are not repeated
• The 28-week SSP entitlement runs cumulatively across both periods

An employee loses SSP eligibility if a continuous series of linked periods lasts more than 3 years.

When SSP ends

SSP entitlement ends when any of these occur:

• 28 weeks of SSP have been paid (or across linked periods)
• The employee returns to work
• The employee's contract of employment ends
• The employee goes into legal custody
• The employee starts receiving Statutory Maternity Pay or Maternity Allowance
• A continuous series of linked periods exceeds 3 years

Form SSP1

You must give the employee form SSP1:

• No later than 7 days before SSP runs out — so they can apply for Employment and Support Allowance or Universal Credit in time
• Immediately — if the employee does not qualify for SSP at all
• On termination — if the employee's contract ends while they are still sick

Record keeping

Mandatory SSP-specific record keeping was removed in April 2014. However, you should still keep records of:

• Dates of sickness absence lasting 4 or more days
• SSP payments made
• Qualifying days agreed with employees
• Fit notes received

HMRC may ask to see these records if there is a dispute. Form SSP2 is available as an optional record-keeping template. General PAYE record-keeping rules still require you to keep payroll records for at least 3 years after the end of the tax year they relate to.

Occupational sick pay

You may choose to offer enhanced sick pay above SSP (sometimes called 'company sick pay' or 'contractual sick pay'). This is not a legal requirement, but if you offer it, the terms should be set out in the employment contract or staff handbook.

Key points:

• Occupational sick pay must be at least as much as SSP — you cannot pay less than SSP
• SSP is offset against occupational sick pay (you do not pay SSP on top of it)
• Common approaches include full pay for a set number of weeks, then half pay, then SSP only
• Once occupational sick pay ends, SSP continues until the 28-week maximum (if the employee still qualifies)

Managing long-term sickness absence

Before considering dismissal for long-term sickness, you should:

1. Keep in regular, proportionate contact with the employee
2. Obtain up-to-date medical information (with employee consent) — consider an occupational health referral
3. Consider reasonable adjustments if the employee is disabled under the Equality Act 2010
4. Explore options for a phased return, altered duties, or redeployment
5. Hold a formal review meeting (the employee may be accompanied)

Dismissal for capability (long-term sickness) may be fair if there is no realistic prospect of return within a reasonable timescale, all reasonable adjustments have been considered, and you have followed a fair procedure. Dismissing a disabled employee without making reasonable adjustments is likely to be discriminatory.

Disputes and penalties

If an employee disagrees with your SSP decision:

1. You must give them a written reason for your decision
2. The employee can contact the HMRC Statutory Payment Disputes Team on 03000 560 630
3. HMRC investigates and makes a formal decision
4. Either party can appeal the decision

If HMRC decides you should have paid SSP, you must pay it by the first payday after the decision (or the second if the first is not practicable). Failure to pay within this time limit may result in a civil penalty.