Updated October 2026: rewritten for the Statutory Sick Pay changes that took effect on 6 April 2026.
Introduction
When employees in the UK are too ill to work, they may be entitled to Statutory Sick Pay (SSP) from their employer. SSP changed significantly on 6 April 2026 under the Employment Rights Act 2025: it is now paid from the first day of sickness, and the minimum earnings test has been removed. This guide explains the current rules for employers and employees.
Who qualifies for Statutory Sick Pay
From 6 April 2026, to qualify for SSP a worker must:
- be classed as an employee for tax purposes (this includes most agency workers, but not the self-employed)
- have started work for the employer
- tell the employer they are sick within any deadline the employer sets, or within 7 days if there is none
The old rules no longer apply. Employees no longer need to earn at least the Lower Earnings Limit, and they no longer need to be off sick for at least four days in a row before SSP is due.
How much is Statutory Sick Pay?
For 2026/27, SSP is the lower of:
- £123.25 per week, or
- 80% of the employee’s average weekly earnings
Average weekly earnings are normally worked out over the 8 weeks before the sickness began. For employees on lower pay, the 80% figure will usually apply.
Calculating Statutory Sick Pay
The calculation of SSP works like this:
1. Identify qualifying days
Qualifying days are the days the employee would normally work, usually as set out in their contract.
2. Work out the weekly rate
Compare £123.25 with 80% of the employee’s average weekly earnings, and use the lower figure.
3. Work out the daily rate
Divide the weekly rate by the number of qualifying days in the week. For example, an employee who works five days a week and is entitled to the full rate receives £123.25 ÷ 5 = £24.65 for each day of sickness.
4. Pay from the first day
SSP is paid for each qualifying day of sickness absence from the first day. There are no longer any unpaid “waiting days”.
Tax, National Insurance and how long SSP lasts
SSP is paid through payroll and is subject to income tax and National Insurance in the usual way. It can be paid for up to 28 weeks. If an employee is still unable to work after that, they may be able to claim Employment and Support Allowance or Universal Credit.
Absences that started before 6 April 2026
Transitional rules apply to sickness that began before 6 April 2026 and continued after that date. HMRC explains these in its guidance on sickness absences that span 6 April 2026.
Employer responsibilities
Employers must calculate and pay SSP correctly through payroll, keep records of sickness absence and SSP paid, and check that their sickness absence policies and payroll software reflect the April 2026 changes. Employers cannot reclaim SSP from HMRC.
Enhanced sick pay schemes
Some employers offer contractual sick pay that is more generous than SSP. Employees should check their contract or company handbook. Employers should check that any enhanced scheme still pays at least as much as SSP under the new rules.
Conclusion
The 2026 reforms mean more employees qualify for SSP and it is paid sooner. If you run payroll for staff, make sure your processes and software are up to date. For specific cases, consult HR professionals, payroll experts or GOV.UK.
Need help with payroll? See our payroll service, contact us or call 0845 862 6009.