Understanding the Statutory Sick Pay (SSP) Rules for Employers in the UK

/Published:21st October 2025/inBusiness, Limited Company, Running a business
Accounting Wise - understanding statutory sick pay (SSP) rules

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As an employer in the UK, you’re legally required to provide Statutory Sick Pay (SSP) to eligible employees who are off work due to illness. But with qualifying conditions, payment thresholds, and HMRC reporting obligations, it’s crucial to understand the SSP rules for employers to ensure compliance and fair treatment of your staff.

In this post, we cover everything UK employers need to know about SSP – who qualifies, how much to pay, how long to pay it for, and your reporting responsibilities.

What Is Statutory Sick Pay (SSP)?

Statutory Sick Pay (SSP) is a legal obligation for UK employers. It is a fixed-rate payment that must be provided to eligible employees who are off work due to illness for at least four consecutive days, including non-working days such as weekends and bank holidays. These four days are known as a “Period of Incapacity for Work” (PIW).

Unlike some benefits, SSP is not reimbursed by the government. As an employer, you are solely responsible for paying it, and it must be processed through your payroll system and reported to HMRC via Real Time Information (RTI).

SSP Rate for 2025/26

For the 2025/26 tax year, the standard SSP rate is £118.75 per week. This applies regardless of the employee’s salary or contracted hours, provided they meet the earnings threshold.

You must pay SSP:

  • From the fourth qualifying day of sickness (the first three are unpaid, unless your company offers enhanced sick pay)
  • For a maximum of 28 weeks per period of sickness (or linked periods)

SSP should be included in your regular payroll, subject to both income tax and National Insurance deductions.

For the latest government guidance and rates, visit the official GOV.UK Statutory Sick Pay page.

Who Qualifies for SSP?

To qualify for Statutory Sick Pay (SSP) in the UK, an individual must meet several key conditions. These criteria apply regardless of the size of your business or the type of employment contract in place.

Employees Must:

  • Be classed as an employee
    The individual must be working under an employment contract and have already started work. This includes full-time, part-time, agency workers, casual staff, and zero-hours workers.
  • Have been off sick for at least four consecutive days
    This period—called a Period of Incapacity for Work (PIW) must include non-working days (e.g. weekends). The employee must be genuinely unable to work due to illness or injury during this time.
  • Earn a minimum of £123 per week (2025/26 threshold)
    This is calculated before tax, and applies to average weekly earnings over the previous 8 weeks. Employees earning below this threshold are not eligible for SSP, but may be able to claim other benefits such as Universal Credit or Employment and Support Allowance (ESA).
  • Notify their employer appropriately
    Employees must inform you of their sickness within your stated company deadline—usually within 7 days unless your policy allows longer. Failure to notify in time may mean they lose entitlement to SSP for that period.
  • Provide medical evidence
    For absences longer than 7 calendar days, employees must provide evidence of incapacity – typically in the form of a fit note (formerly known as a sick note) from a GP or NHS practitioner.

Who Is Covered?

SSP applies to most categories of workers, including:

  • Full-time and part-time employees
  • Fixed-term contract workers
  • Agency workers and temporary staff
  • Casual and zero-hours employees (if average earnings meet the threshold)
  • Agricultural workers (if paid via PAYE)

What About Company Directors?

Company directors can also qualify for SSP if:

  • They are paid through PAYE
  • Their earnings meet or exceed the £123 weekly threshold
  • They meet all other criteria (e.g. they’ve performed work, meet notification deadlines, and are sick for at least 4 days)

It’s important to note that directors on annual payroll schemes may find it harder to meet the weekly earnings threshold, so additional planning may be needed.

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How Much SSP Should Employers Pay?

As of April 2025, the weekly Statutory Sick Pay (SSP) rate remains set at £118.75. This amount is fixed, regardless of the employee’s usual pay rate or working hours, and must be paid for each full week of eligible sickness absence. If the employee is off for part of a week, the payment is pro-rated based on the number of qualifying days.

Payment Frequency

SSP should be paid on the same schedule as the employee’s normal wages – whether that’s weekly, fortnightly, or monthly. It is processed through your usual payroll system and should be clearly itemised on their payslip.

Deductions and Tax

Statutory Sick Pay is treated as regular earnings. This means it is:

  • Subject to income tax
  • Subject to Class 1 National Insurance contributions (if earnings reach the appropriate thresholds)

Employers should continue to make the usual PAYE and NI deductions through RTI (Real Time Information) submissions to HMRC.

Offering More Than SSP

While employers are only legally required to pay the statutory minimum, many choose to offer enhanced or occupational sick pay (OSP) as part of their employment package. OSP terms are set by the employer and can vary widely – some companies offer full pay for a set number of weeks, others offer a staged reduction over time.

Important: If you offer occupational sick pay, it must not be less than the SSP entitlement. You must still pay at least the statutory rate for eligible employees and clearly outline any additional entitlement in the employee’s contract or staff handbook.

How Long Does SSP Last?

Employers are required to pay Statutory Sick Pay (SSP) for a maximum of 28 weeks per qualifying period of illness. This period is known as the “period of entitlement”, and it applies to any eligible employee who meets the SSP criteria.

Linked Periods of Sickness

In some cases, sickness absences can be linked. This happens when:

  • There are two or more separate periods of sickness, and
  • They are no more than 8 weeks (56 days) apart

If the conditions above are met, the separate absences are treated as one continuous period of incapacity for work. This means the total number of SSP weeks across all linked absences cannot exceed 28.

For example: If an employee is off sick for 10 weeks, returns to work for 4 weeks, and then goes off sick again for another 10 weeks with a related illness, the total time off is treated as one 20-week period. You would continue paying SSP until the 28-week cap is reached.

When SSP Ends

After 28 weeks of SSP payments, you are no longer legally required to pay statutory sick pay, even if the employee remains unwell and unable to return to work.

At this stage, the employee may be eligible to claim Employment and Support Allowance (ESA) or Universal Credit, depending on their financial situation.

As an employer, you must:

  • Issue an SSP1 form to the employee before their SSP ends
    • This should be done:
      • On or before the 23rd week of sickness if it’s clear SSP will run out
      • Within 7 days of SSP ending, if it ends unexpectedly
  • The form will allow the employee to apply for ESA through the Department for Work and Pensions (DWP)

You can download and complete the SSP1 form from: SSP1 form (GOV.UK)

Employer Responsibilities and Compliance

To meet your legal obligations under the Statutory Sick Pay (SSP) scheme, you must ensure that your business remains fully compliant with HMRC rules and UK employment law. Failing to follow correct procedures can lead to disputes, penalties, or even tribunal claims.

Here’s what employers in the UK must do:

  1. Keep Accurate Records

Accurate and up-to-date records are essential in the event of an HMRC audit or employee dispute. You should maintain:

  • Dates of sickness absence
    Including start and end dates, and whether the absences qualify for SSP
  • SSP payments made
    Document amounts paid, dates of payment, and the relevant payroll period
  • Medical evidence provided
    Such as fit notes from a GP or hospital for absences over seven days, or self-certification for shorter periods

HMRC recommends keeping SSP records for at least 3 years after the end of the tax year they relate to.

  1. Communicate Policies Clearly

You must ensure employees are aware of their rights and responsibilities around SSP by:

  • Including clear SSP policies in employment contracts or your employee handbook
    This should outline eligibility, notification procedures, and any enhanced sick pay provisions
  • Explaining how to report sickness
    For example, requiring employees to notify their line manager by a certain time on the first day of absence

Clear policies reduce confusion, promote fairness, and help protect your business legally.

  1. Report Through Payroll

All SSP payments must be processed through your payroll system and reported to HMRC via Real Time Information (RTI) submissions.

There is no separate form to notify HMRC about SSP, but it must be included in your regular payroll data. Ensure your software is up to date and capable of calculating SSP in line with current thresholds.

  1. Avoid Discrimination

It is unlawful to apply SSP rules inconsistently or unfairly. All employees who meet the eligibility criteria regardless of contract type, hours worked, or personal circumstances must be treated equally.

Inconsistent application of SSP can:

  • Breach equality and discrimination laws
  • Damage staff morale and trust
  • Result in employment tribunal claims

Make sure your managers understand the rules and that your policies are applied fairly across the board.

For further guidance, visit the official employer support page:  GOV.UK – SSP: Employer Guide

Can Employers Reclaim SSP?

In most cases, no UK employers are no longer able to reclaim Statutory Sick Pay (SSP) from the government under normal circumstances.

COVID-19 Rebate Scheme (Now Closed)

During the COVID-19 pandemic, the government introduced a temporary SSP rebate scheme that allowed small and medium-sized employers (with fewer than 250 employees) to reclaim up to two weeks’ worth of SSP per eligible employee for COVID-related absences.

This scheme applied to:

  • Employees off due to COVID-19 illness or self-isolation
  • Absences related to shielding or caring for someone with COVID-19

However, this temporary measure was withdrawn on 17 March 2022, and the deadline for submitting claims closed on 24 March 2022.

Current Rules (2025/26)

Under the current legislation, employers must fund SSP themselves. There is no statutory mechanism to reclaim SSP costs from HMRC, regardless of the size of your business or the nature of the absence.

This means:

  • SSP is an employer-funded statutory obligation
  • You must budget for SSP as part of your regular payroll costs
  • Any future rebate schemes would require separate legislation to be enacted

Employers should monitor official updates from HMRC or the Department for Work and Pensions (DWP) in case any new support schemes are introduced in response to future public health events or economic pressures.

You can check the latest employer guidance here: GOV.UK – Sick Pay and Recovery

What If an Employee Doesn’t Qualify?

If an employee doesn’t meet the qualifying criteria (e.g. earnings are too low or they’re self-employed), you must give them a SSP1 form within 7 days of them going off sick. This allows them to apply for other benefits like ESA.

You can download the form here: SSP1 form (GOV.UK)

Summary: SSP Rules for Employers in the UK

SSP RuleSummary
Weekly Rate (2025/26)£118.75 per week
DurationUp to 28 weeks
Qualifying CriteriaEmployee status, earnings over £123/week, sick for 4+ consecutive days
Payment MethodVia payroll, subject to tax/NI
Employer ReimbursementNot available (COVID scheme ended in 2022)
Documentation RequiredFit notes after 7 days, SSP1 if ineligible

Need Help With Payroll or SSP?

At Accounting Wise, we support UK employers with payroll, compliance, and HR best practices. Whether you’re unsure how to apply SSP correctly or want to streamline your payroll process, we’re here to help.

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SSP FAQ

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Employees must be off sick for at least four consecutive days, including non-working days, before SSP becomes payable. The first three qualifying days are unpaid unless your company offers enhanced sick pay.

The SSP rate for 2025/26 is £116.75 per week. This is the same for all eligible employees, regardless of their usual pay or hours worked.

Yes, as long as they earn at least £123 per week (before tax) on average over the previous 8 weeks and meet all other eligibility conditions.

Company directors can receive SSP if they are paid through PAYE, earn at least £123 per week, and have been off sick for at least four consecutive days.

Yes, weekends and bank holidays count as qualifying days if they fall within the employee’s normal pattern of work and the period of incapacity for work (PIW).

No. Employers cannot reclaim SSP from HMRC under current rules. The previous COVID-19 rebate scheme closed in March 2022.

SSP stops after 28 weeks. You must issue an SSP1 form so the employee can apply for Employment and Support Allowance (ESA) or Universal Credit through the DWP.

If an employee earns less than £123 per week, they are not eligible for SSP. You must give them an SSP1 form within 7 days so they can apply for other benefits.

Yes. Statutory Sick Pay is treated as normal earnings, meaning it is subject to income tax and National Insurance through your payroll system.

A quick daily check keeps records accurate. A weekly review helps you refine estimates, track utilisation, and spot overruns. Monthly reviews let you analyse client profitability and adjust pricing.

You should keep detailed records for at least 3 years, including:

  • Dates of sickness absence
  • Amounts and dates of SSP paid
  • Medical evidence or fit notes
  • Copies of SSP1 forms issued
Glossary of Key SSP Terms

Statutory Sick Pay (SSP)  
A legal minimum payment employers must provide to eligible employees who are off work due to illness for four or more consecutive days.

Period of Incapacity for Work (PIW)  
A spell of at least four consecutive days (including non-working days) when an employee is unable to work due to illness or injury.

Qualifying Days  
The days an employee normally works and for which SSP is payable after the initial waiting days.

Waiting Days  
The first three qualifying days of sickness, during which SSP is not payable (unless the employer offers enhanced sick pay).

Earnings Threshold  
The minimum average weekly earnings required to qualify for SSP — £123 per week for the 2025/26 tax year.

Linked Periods of Sickness  
Separate periods of sickness that occur within eight weeks of each other and are treated as one continuous period for SSP purposes.

SSP1 Form  
A form employers must give to employees who don’t qualify for SSP or when SSP entitlement ends, enabling them to claim other benefits such as ESA.

Fit Note  
A medical certificate issued by a GP or healthcare professional confirming an employee’s inability to work for more than seven days.

Employment and Support Allowance (ESA)  
A government benefit for people unable to work due to illness or disability after their SSP entitlement ends.

PAYE (Pay As You Earn)  
The system employers use to deduct income tax and National Insurance contributions from employees’ pay, including SSP.

Real Time Information (RTI)  
The process of reporting payroll information to HMRC each time employees are paid, including SSP payments.

Occupational Sick Pay (OSP)  
Enhanced or contractual sick pay offered by some employers that exceeds the statutory minimum SSP rate.

HMRC (His Majesty’s Revenue and Customs)  
The UK government department responsible for tax collection and enforcement of employer payroll obligations, including SSP compliance.

Universal Credit  
A benefit available to individuals with low income or out of work, which can include those ineligible for SSP.

Director’s SSP  
SSP entitlement that applies to company directors, provided they meet PAYE and earnings requirements and follow standard notification procedures.
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