What is Statutory Sick Pay?

1. What is Statutory Sick Pay?
2. What’s the difference between Statutory Sick Pay and occupational sick pay?
3. Does an employer legally have to pay SSP?
4. Who qualifies for SSP?
5. Who isn’t eligible for Statutory Sick Pay?
6. How much is Statutory Sick Pay?
7. How does Statutory Sick Pay work?
8. Upcoming changes to Statutory Sick Pay
9. Effortlessly manage Statutory Sick Pay with PeopleHR

Statutory Sick Pay (SSP) is a government-mandated payment that UK employers must provide to eligible employees who are unable to work due to illness. It serves as a safety net, ensuring that workers have some income during periods when they can’t perform their duties.

To qualify for SSP, employees must meet specific criteria, including being off sick for a certain number of consecutive days and earning above a minimum threshold. Employers are responsible for administering SSP and must adhere to the guidelines set out by the government.

While SSP is the minimum amount that employers are legally required to pay, some organisations offer occupational sick pay, which provides enhanced benefits. Occupational sick pay schemes are optional and may offer higher payments or longer durations of support. Employers should clearly outline any additional sick pay policies in employment contracts or handbooks.

Yes, employers are legally obligated to pay SSP to eligible employees. Failure to do so can result in legal consequences and damage to the employer’s reputation. It’s therefore essential for employers to fully understand their responsibilities and ensure compliance with SSP regulations.

To be eligible for SSP, employees must:

• Have an employment contract
• Have performed some work under their contract
• Be sick for at least 4 consecutive days (including non-working days)
• Earn an average of at least £125 per week
• Provide appropriate notice and proof of illness when required

Part-time and zero-hours workers can also qualify for SSP if they meet these criteria. Visit GOV.UK for detailed information on entitlement.

Employees are not eligible for SSP if they:

• Are self-employed
• Have already received SSP for 28 weeks and the 28 weeks ended within the last 8 weeks
• Are in legal custody
• Have received Employment and Support Allowance within 12 weeks of starting or returning to work

Understanding these exclusions helps employers to manage expectations and guide employees appropriately.

As of April 6, 2025, the Statutory Sick Pay rate is £118.75 per week. Employers cannot offer less than this amount but may choose to provide more generous sick pay through occupational sick pay schemes. Employers should specify sick pay rates in their HR policies to ensure clarity for employees.

How much is Statutory Sick Pay per day?

So how much is Statutory Sick Pay per day? SSP is set at a flat weekly rate. At the current rate of £118.75, the daily SSP amount would be approximately £23.75 for a five-day work week. If you’re unsure of how much to pay your employees when they’re off sick, you can use the government's SSP calculator for precise calculations.

Understanding how Statutory Sick Pay works is crucial for both employers and employees. The process involves determining eligibility, calculating the correct amount, and ensuring timely payment. It’s also important to note that the current SSP rules are set to change, and staying updated with the latest regulations is essential. We’ll explain these changes later in the article.

How to check employee eligibility

Employers should verify that the employee meets all SSP eligibility criteria, including the duration of sickness and average earnings. Maintaining accurate records and documentation is vital for compliance and auditing purposes.

When to start paying Statutory Sick Pay

SSP should start from the fourth consecutive day of sickness absence, including non-working days. However, the upcoming changes to SSP are set to remove this waiting period, so employers must stay informed about legislative updates and when they come into effect.

How to calculate Statutory Sick Pay

SSP is set at a flat weekly rate, so you’ll need to pro-rate it based on the employee’s usual working days. These are known as the qualifying days.

To calculate the SSP for eligible employees, you need to:

• Work out the number of qualifying days
• Deduct the 3 waiting days (until the proposed legislation change)
• Divide the weekly SSP rate by the number of days the employee usually works in a week
• Multiply this amount by the number of days off sick

For example, if an employee works 5 days a week, the daily SSP rate is approximately £23.75. You’d then need to multiply this by the number of qualifying days to determine the total SSP due. If you’re ever unsure, you can use the government's SSP calculator.

How to pay staff who are off sick

SSP should be paid on the same schedule as the employee’s regular wages, using the usual payment method. Employers must clearly indicate SSP payments on payslips and maintain accurate records for auditing purposes.

When to stop paying Statutory Sick Pay

SSP stops when:

• The employee returns to work
• The 28-week SSP entitlement period ends
• The employee’s contract ends

Employers should request a fit note from the employee's doctor to confirm their ability to return to work.

What to do if an employee exceeds their SSP entitlement

If an employee exhausts their SSP entitlement, they may be eligible for other benefits such as Employment and Support Allowance. Employers should provide the employee with a completed SSP1 form to support their application.

Significant changes to SSP have been outlined by the government, although the exact implementation date has not yet been set.

One major change is the removal of the three-day waiting period, allowing employees to receive SSP from the first day of absence. This aims to provide immediate financial support and reduce the spread of illness in the workplace.

Another proposed change is the elimination of the lower earnings limit, making SSP accessible to more low-income workers. Under this reform, employees earning below the previous threshold would receive 80% of their average weekly earnings or £118.75, whichever is lower.

Understanding how Statutory Sick Pay works is essential for both employers and employees. Staying compliant with SSP regulations ensures that employees receive the support they need during periods of illness, and that employers fulfill their legal obligations.

PeopleHR’s payroll software simplifies the management of SSP by automating calculations, tracking employee absences and ensuring compliance with the latest regulations. To see how our HR solutions can benefit your organisation, request a demo or get in touch with our friendly team.