What is Statutory Sick Pay?

Statutory Sick Pay (SSP) is the legal minimum amount that UK employers must pay to employees who are unable to work because of illness or injury. SSP is paid through the normal PAYE payroll process and is subject to the same tax and National Insurance deductions as regular pay.

SSP Rate and Duration

The current SSP rate for 2024/25 is £116.75 per week. This is a flat rate regardless of the employee’s normal earnings.

SSP is payable for a maximum of 28 weeks in a single period of incapacity. After 28 weeks, the employee may be able to claim Employment and Support Allowance (ESA) from the Department for Work and Pensions instead.

Who Qualifies for SSP

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

• They are classed as an employee and do some work for the employer
• They have been ill for at least 4 consecutive days (including non-working days)
• They earn at least the Lower Earnings Limit (LEL) for National Insurance, which is £123 per week for 2024/25
• They have notified their employer of the sickness within the required timeframe
• They have provided evidence of incapacity if required

Who Does Not Qualify

SSP is not payable to:

• Agency workers paid by an agency (the agency is the employer for SSP purposes)
• Employees who earn below the Lower Earnings Limit
• Employees who have already received 28 weeks of SSP for the same illness
• Employees within a linked period where a previous SSP entitlement was exhausted
• Employees on a maternity or adoption leave period (they receive Statutory Maternity Pay instead)
• Employees who are in legal custody

Qualifying Days

Qualifying days are the days on which SSP can be paid. These are normally the days the employee is contracted to work. For a standard Monday-to-Friday worker, there are 5 qualifying days per week.

The first 3 qualifying days of sickness are called waiting days and are unpaid. SSP begins from the 4th qualifying day.

If an employee has multiple periods of sickness separated by 8 weeks or fewer, these are linked and the waiting days only apply once across the linked periods.

Period of Incapacity for Work

A Period of Incapacity for Work (PIW) is any period of 4 or more consecutive calendar days during which an employee is too ill to work. It includes weekends and days the employee would not normally work.

Linking Periods

If two PIWs are separated by 8 weeks (56 days) or fewer, they are linked into a single period. This means:

• The 3 waiting days are not served again
• SSP days from the earlier period count towards the 28-week maximum
• The employer continues the SSP calculation from where it left off

Employer Obligations

Notification Requirements

Employers can set their own rules for how employees should report sickness, but these must be reasonable. If no specific rules are set, the employee must notify the employer within 7 days of the first day of sickness.

Evidence of Sickness

Employers cannot insist on a doctor’s note for the first 7 days. The fit note replaced the old sick note and can state that the employee is either “not fit for work” or “may be fit for work” with adjustments.

Record Keeping

Employers must keep records of SSP payments and sickness absences for at least 3 years after the end of the tax year. Records should include:

• Dates of each absence
• Qualifying days in each week
• SSP amounts paid
• Evidence received (self-certificates, fit notes)
• Reasons for any non-payment

SSP Through the Payroll

SSP is paid through the normal payroll cycle, not as a separate payment. It is included in the employee’s gross pay and processed through PAYE :

• Income tax is deducted from SSP using the employee’s tax code
• Employee NICs are calculated on SSP (though at £116.75/week, this is below the Primary Threshold and usually generates no NIC liability)
• Employer NICs are calculated on SSP
• SSP is reported to HMRC through RTI as part of the normal FPS

SSP appears on the employee’s payslip and counts towards their annual earnings shown on the P60 .

Occupational Sick Pay

Many employers offer occupational sick pay (also called company sick pay or contractual sick pay) that is more generous than SSP. This might include:

• Full pay for a set number of weeks, then half pay, then SSP only
• A sliding scale based on length of service
• SSP as a top-up to occupational sick pay rather than paid separately

When occupational sick pay meets or exceeds the SSP rate, no separate SSP calculation is needed — the employer is already meeting the statutory minimum. However, the employer must still track qualifying days and periods of incapacity to manage the transition if occupational sick pay runs out before SSP entitlement expires.

SSP and Other Statutory Payments

SSP cannot be paid at the same time as certain other statutory payments:

When SSP Ends

SSP stops being payable when any of the following occurs:

• The employee returns to work
• The 28-week maximum is reached
• The employee’s contract of employment ends
• The employee starts receiving Statutory Maternity Pay or Maternity Allowance
• The employee is taken into legal custody
• The employee dies

When SSP ends because the 28-week maximum has been reached, the employer must issue form SSP1 to the employee. This allows the employee to claim Employment and Support Allowance from the DWP.

Recovering SSP Costs

Since April 2014, most employers cannot recover SSP costs from HMRC. The Percentage Threshold Scheme, which previously allowed partial recovery, was abolished.

However, employers can recover SSP if they pay it during a period covered by an HMRC-approved SSP exemption, such as during certain pandemic-related provisions when applicable.

SSP and Accounting

SSP payments are recorded as part of the employer’s wage costs in the accounting records . The key entries are:

• Salary expense — SSP replaces the normal salary amount for sick days
• Employer NIC — calculated on SSP at the standard employer rate
• PAYE liability — tax deducted from SSP owed to HMRC
• Pension contributions — SSP counts as earnings for auto-enrolment assessment purposes, though it may fall below the qualifying earnings threshold

Employer Practical Steps

Managing SSP Claims

1. Record the employee’s first day of sickness and expected return date
2. Determine if the absence meets the 4-day PIW minimum
3. Check if the absence links to a previous PIW
4. Verify the employee earns above the Lower Earnings Limit
5. Apply the 3 waiting days (unless linked to a previous PIW)
6. Calculate SSP for each qualifying day from day 4 onwards
7. Process SSP through the next available payroll run
8. Obtain a fit note if the absence exceeds 7 calendar days
9. Report SSP through RTI on the FPS

Disputing SSP

If an employer believes SSP is not due, they must issue form SSP1 to the employee within 7 days, explaining why. The employee can then ask HMRC to make a formal decision. HMRC can direct the employer to pay SSP if they disagree with the employer’s assessment.