Statutory Sick Pay UK: Rates, Eligibility & 2026 Rules

Table of Contents

Who should read this?

UK employers, HR managers, and business owners employing staff, especially those with part-time or low-paid workers affected by 2026 SSP changes.

They'll gain clear guidance on new eligibility rules, payment calculations, record-keeping obligations, and preparation steps to avoid penalties and ensure fair sick leave policies.

Key Takeaways

From 6 April 2026, SSP is a day-one entitlement with no Lower Earnings Limit, qualifying more employees.
Weekly rate rises to £123.25 (or 80% earnings if lower), paid up to 28 weeks on qualifying days.
Employers must pay via payroll, maintain records, and update systems for compliance with Fair Work Agency.
No fit note required first 7 days; self-certification suffices.
Contractual sick pay exceeds SSP minimum; both taxable.

If you employ people in the UK, you are legally required to pay statutory sick pay to eligible employees who are too ill to work. The rules have recently changed significantly. From 6 April 2026, SSP became a day-one entitlement with no minimum earnings threshold, which means more employees will qualify and costs will begin accruing from the first day of absence.

This guide covers how statutory sick pay works, who qualifies, what you owe as an employer, and what the April 2026 changes mean in practice.

What is statutory sick pay?

Statutory sick pay (SSP) is the legal minimum amount an employer must pay an employee who is too unwell to work. It is paid by the employer through normal payroll, not by HMRC. SSP currently stands at £118.75 per week, rising to £123.25 from 6 April 2026, and can be paid for up to 28 weeks.

SSP applies to both physical and mental health conditions. There is no distinction in law between a physical illness and a mental health absence. If an employee meets the eligibility criteria, they are entitled to SSP regardless of the reason for their sickness.

Please note: SSP is a minimum floor. Many employers offer contractual (or occupational) sick pay on top of SSP, which must be set out in the employment contract. You can pay more than SSP, but you cannot pay less.

Who is eligible for SSP?

To qualify for SSP under the previous rules (before 6 April 2026), an employee must be classed as employed for tax purposes, earn at least £125 per week on average (the Lower Earnings Limit), have been off sick for at least four consecutive days including non-working days, and have notified their employer within any deadline set or within seven days.

Self-employed workers, those who pay their own tax through self-assessment, and employees earning below the Lower Earnings Limit are not currently eligible.

From 6 April 2026, two significant barriers are being removed under the Employment Rights Act 2025. The Lower Earnings Limit is abolished entirely, meaning all employees qualify regardless of how much they earn. The three waiting days are also removed, so SSP is payable from the first qualifying day of sickness absence.

In practice, this means: Even a one-day absence from 6 April 2026 will trigger an SSP payment. If you employ part-time or low-paid workers, review your absence procedures now to make sure you are ready.

How much is SSP and how long does it last?

SSP is currently paid at a flat rate of £118.75 per week for up to 28 weeks. From 6 April 2026, the rate rose to £123.25 per week, or 80% of the employee's average weekly earnings, whichever is lower. Most employees will still receive the flat rate; the 80% calculation only applies where 80% of average weekly earnings is lower than £123.25.

SSP is paid on qualifying days only, which are normally the days an employee is contracted to work. The daily rate is calculated by dividing the weekly rate by the number of qualifying days in the week. For example, an employee working five days a week would receive £24.65 per qualifying day from April 2026.

If an employee was sick for fewer than four days under the previous rules, no SSP was payable. From April 2026, this changed: SSP starts from day one, so any qualifying sickness absence triggers payment immediately.

The 28-week maximum has not changed. Once SSP is exhausted, the employer's obligation to pay ends and the employee may need to transition to other forms of support.

What are your obligations as an employer?

Employers must pay SSP to all eligible employees through their normal payroll. You cannot require a fit note for the first seven calendar days of absence. During this period, employees self-certify their sickness. After seven days, you can request a fit note from a qualifying healthcare professional, which includes GPs, registered nurses, occupational therapists, pharmacists, and physiotherapists.

You must keep accurate company records of all sickness absences, including dates, duration, and the reason given. If an employee is not eligible for SSP, or their SSP is about to end, you must issue them an SSP1 form so they can claim alternative benefits.

Author's tip: A fit note may say the employee is "not fit for work" or "may be fit for work" with adjustments. If the note suggests adjustments like reduced hours or lighter duties, discuss these with the employee before treating them as fully unfit. A phased return can benefit both sides, and from April 2026, SSP is payable on absent days during a phased return.

The Fair Work Agency launched on 7 April 2026 to enforce SSP compliance. Employers who fail to pay SSP correctly may face tax penalty triggers, so getting your payroll systems updated is worth prioritising.

Statutory annual leave continues to accrue while an employee is off sick, regardless of how long the absence lasts.

Get your sick pay policy ready for April 2026
Open Forest can help you review your employment contracts, update your payroll processes, and make sure your sick pay arrangements meet the new requirements before the deadline.
Get in touch to find out more

What happens when SSP runs out?

Once the 28-week SSP period ends, the employee may be able to claim New Style Employment and Support Allowance (ESA) or Universal Credit. Employees can apply for ESA up to three months before their SSP is due to end, and you should encourage them to do so early, as the application process takes time.

You must provide the employee with an SSP1 form to support their benefits application. If the employee also receives contractual sick pay, this does not affect their ESA entitlement.

For long-term sickness, you should consider occupational health referrals, reasonable adjustments, and return-to-work support. In our experience, formal capability procedures may be appropriate if a return is not foreseeable, but be aware that dismissal during sick leave must follow a fair process and take reasonable adjustments into account.

SSP and contractual sick pay: what is the difference?

Contractual sick pay (also called company or occupational sick pay) is any sick pay your business offers above the statutory minimum. It is entirely discretionary. There is no liability to offer it, but many employers do as part of their benefits package.

A common contractual scheme provides full pay for a set number of weeks, then half pay, before dropping to SSP only. For example, an employer might offer six weeks at full pay, six weeks at half pay, and SSP-only thereafter. Whatever you offer must be set out in the employment contract.

Both SSP and contractual sick pay are subject to income tax and National Insurance. If your contractual scheme pays at least as much as SSP, it satisfies the statutory requirement. You do not need to pay SSP on top of contractual sick pay if the contractual amount already meets or exceeds the SSP rate.

We recommend that when designing a sick pay policy, balance employee support with business sustainability. A competitive sick pay offering can improve retention and reduce presenteeism, where employees come to work while unwell and underperform or spread illness.

Getting your sick pay policy right

The April 2026 changes mean SSP will reach more employees and start from day one. For employers, the steps are clear: update your payroll systems to reflect the new rate and day-one entitlement, review your absence reporting procedures, and make sure your employment contracts clearly set out your sick pay arrangements.

If you are not sure whether your current policy meets the new requirements, now is the time to check. The Fair Work Agency is operational since7 April 2026, and getting it right from the start is easier than fixing it after the fact.

If you need help reviewing your sick pay policy or updating your contracts, Open Forest can point you in the right direction.

‍

About the Author:

Connect:

Laura Ryan is a practising Barrister at the Bar of Ireland. She graduated from the Honourable Society of King’s Inns in 2024, having previously qualified and practised as a Chartered Accountant in a big four accounting firm.

Legal

April 2026

Statutory Sick Pay in the UK: Rates, Eligibility & Obligations

Key Takeaways

Cookie Consent for Irish Websites

Cross-Border Data Transfers Under GDPR

Grievance Procedures for Small Irish Employers

ROPA: What Irish Businesses Must Document Under GDPR

Annual Leave and Public Holidays in Ireland

Subject Access Requests: How Irish Businesses Must Respond

GDPR Vendor Compliance for Irish Startups

Right to Erasure for Irish Businesses

Cap Table Management for Irish Founders

Subscription Agreements for Irish Founders

Frequently Asked Questions

What is statutory sick pay?

Who is eligible for SSP from 6 April 2026?

How is SSP calculated and paid?

What are employer obligations for SSP?

What happens after SSP ends?

Explore our other topics

Cookie Consent Ireland: ePrivacy & GDPR Rules

Founder Vesting Explained: How To Protect Your Startup Guide

GDPR Consent Requirements for Irish Companies