HR & Employment

Statutory Sick Pay: A Guide for UK Small Business Employers

SSP changed significantly on 6 April 2026. The three-day waiting period is gone. The lower earnings limit is gone. Every employee qualifies from day one. If your payroll software or policies haven’t been updated, you may already be operating incorrectly. Here’s what you need to know.

Last updated: May 2026 · 9 minute read

Day 1 SSP is now payable from the first day of absence — the three-day waiting period has been abolished

£123.25 SSP rate per week from April 2026, or 80% of average weekly earnings — whichever is lower

All employees The lower earnings limit has been removed — all employees now qualify regardless of what they earn

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Three things that changed on 6 April 2026 SSP now starts from day one of absence (previously day four). All employees qualify regardless of earnings (previously required ≥£125/week). The rate is now the lower of £123.25 or 80% of average weekly earnings (previously a flat rate only). If your payroll software hasn’t been updated, your calculations will be wrong.

What is Statutory Sick Pay?

SSP is the minimum amount employers must pay employees absent from work due to illness. It is set by law — employees are entitled to it regardless of what their contract says, provided they meet the qualifying conditions. If a contract provides for higher contractual sick pay, the employee receives the higher amount.

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SSP is paid by the employer — not HMRC Small employers can no longer reclaim SSP from the government — the rebate scheme was abolished in 2014. The cost is borne entirely by the business. There is no reimbursement mechanism, even for very small employers.

The current SSP rules (from 6 April 2026)

Rule	Before 6 April 2026	From 6 April 2026
When SSP starts	Day 4 of absence (3 unpaid waiting days)	Day 1 of absence
Earnings threshold	Employees needed to earn ≥£125/week to qualify	No minimum earnings — all employees qualify
Rate	£116.75 per week (flat rate)	£123.25 per week, or 80% of average weekly earnings — whichever is lower
Maximum duration	28 weeks	28 weeks (unchanged)

The 80% calculation explained

For employees earning above approximately £154.07 per week (around £8,000 per year), the flat rate of £123.25 applies. For lower-earning employees, SSP is 80% of their average weekly earnings, which may be less than £123.25. Your payroll software should calculate this automatically, but check that it has been updated.

Linked periods of illness

Two separate sickness periods are “linked” if separated by fewer than eight weeks. Linked periods count together toward the 28-week maximum. An employee who takes 20 weeks off sick, returns for three weeks, then goes off sick again is already at 20 weeks of the maximum — the second absence links back to the first.

Qualifying conditions

To receive SSP, an employee must:

Be classed as an employee — not a self-employed contractor or worker without employee status
Have been absent for at least four consecutive days (the period of incapacity for work, or PIW) — though under the new rules SSP is calculated from day one of that period
Have given proper notification of absence within your stated deadline (or within seven days if you have no policy)

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The four-day PIW rule still technically applies SSP is only triggered by an absence of four or more consecutive days — a single day off sick does not create an SSP liability. But once the four-day threshold is met, SSP is backdated to day one. Your payroll software should handle this automatically.

Evidence of sickness

Duration of absence	Evidence required	Notes
Days 1–7	Self-certification only	You cannot require a GP fit note during this period. A simple self-certification form is sufficient.
Day 8 onwards	Fit note (from a GP, nurse, occupational therapist, pharmacist, or physiotherapist)	You can request a fit note from day eight. A fit note can certify “not fit for work” or “may be fit for work” with adaptations.

You cannot refuse to pay SSP because an employee hasn’t provided a fit note before the eighth day. You can require one for any absence exceeding seven days.

What you need in place

Updated payroll software

Your software must reflect day-one eligibility, the removal of the earnings threshold, and the 80%-of-earnings calculation for lower-paid staff. Check with your provider (Xero, QuickBooks, FreeAgent, Sage) that the April 2026 updates have been applied.

A sickness absence policy

A written policy covering: how and when employees notify you of absence; what documentation is required; how SSP is calculated and paid; and your procedure for managing long-term sickness. With day-one SSP in force, even short absences need to be tracked.

A sickness absence record

Keep records of all absences — dates, duration, and whether SSP was paid. Essential for calculating linked periods, tracking the 28-week maximum, managing return-to-work conversations, and defending any future tribunal claims.

A fit note process

Ensure employees and managers know that fit notes are required from day eight. Fit notes should be passed to payroll promptly — delays complicate SSP calculations and long-term absence management.

When you don’t have to pay SSP

The employee is not legally an employee — self-employed contractors and workers without employee status are excluded
The employee has already received 28 weeks of SSP in the current linked period
The employee is on their first day of new employment and hasn’t yet started work
The absence relates to a trade dispute at the employee’s workplace
The employee is receiving Statutory Maternity Pay, Maternity Allowance, or certain other statutory payments during the period

Managing long-term sickness absence

When an employee has been absent for an extended period, your obligations go beyond simply paying SSP:

Obligation	What it involves	Why it matters
Keep in touch	Regular, sensitive contact to maintain the relationship and stay informed — not pressuring the employee	Expected by tribunals as part of a fair absence management process
Occupational health	For absences lasting beyond a few weeks, an OH assessment clarifies fitness and whether adjustments could facilitate a return	Provides objective medical evidence and strengthens any subsequent process
Equality Act duties	If the illness amounts to a disability, you have a duty to make reasonable adjustments to support return to work	Failure to make reasonable adjustments is unlawful disability discrimination
Fair dismissal process	Capability dismissal for long-term sickness requires: medical evidence, explored alternatives, opportunity for employee to make representations, consideration of reasonable adjustments	Dismissing without following a fair process is likely to be unfair dismissal

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Read Acas guidance before making any capability decisions Dismissing an absent employee, even after a long period, requires following a specific fair process. Acas provides free, detailed guidance at acas.org.uk/absence-from-work. An employment solicitor is worth consulting before any capability dismissal.

Enhanced sick pay

Many employers offer contractual sick pay more generous than SSP — full pay for a set number of weeks, half pay after that, then SSP. There’s no legal requirement to offer this, but it reduces the administrative burden of SSP calculations for higher-paid employees and supports retention.

If you offer enhanced sick pay, ensure the terms are clearly set out in the employment contract. Ambiguity about when enhanced pay applies, when it stops, and how it interacts with SSP is a common source of employment disputes.

Useful resources

HMRC SSP calculator — free tool for calculating SSP at gov.uk/calculate-statutory-sick-pay
HMRC SSP employer guidance — gov.uk/employers-sick-pay
Acas sickness and absence guidance — comprehensive guidance on managing absence at acas.org.uk/absence-from-work
Your payroll provider — check that your software has been updated to reflect the April 2026 changes before processing any sick pay

More guides for UK small business owners

Right Hand Man covers everything from statutory sick pay and PAYE to hiring your first employee, auto-enrolment, and writing a business plan. Browse our guides or get in touch if you have a question.