UK Statutory Sick Pay 2026: Eligibility and Calculation

Statutory Sick Pay (SSP) is the minimum payment an employer must make to a qualifying employee who is off work sick. Although the daily amounts are modest, the administrative requirements are exacting — and SSP is one of the most-litigated areas of employment compliance after wages and holiday pay. This deep-dive sets out the SSP architecture in 2026, the eligibility tests, the calculation, the recovery position for small employers, and the Employment Rights Bill 2025 changes that will reshape the regime over the next 18 months.

1. The Statutory Framework

SSP is governed by the Social Security Contributions and Benefits Act 1992 (SSCBA 1992), Part XI (sections 151–163), with detailed mechanics in the Statutory Sick Pay (General) Regulations 1982 (SI 1982/894) as amended.

Primary source: https://www.legislation.gov.uk/ukpga/1992/4/part/XI

2. The 2026 SSP Rate

From 6 April 2026, the weekly SSP rate is £118.75 per week (set by uprating order; figure confirmed in Department for Work and Pensions annual review). SSP is paid for:

• Up to 28 weeks per period of incapacity for work
• Across multiple linked periods of incapacity if breaks between are 8 weeks or less

The daily rate is calculated by dividing the weekly rate by the qualifying days in the relevant week (typically 5 if the employee works Monday-Friday).

Reference: https://www.gov.uk/employers-sick-pay

3. Eligibility Tests

To qualify for SSP, an employee must satisfy five tests under sections 152–155 SSCBA 1992 and the 1982 Regulations:

3.1 Employment Status

The individual must be an employee under section 230(1) ERA 1996. Workers (genuine self-employed) do not qualify.

3.2 Earnings Threshold

Average weekly earnings must equal or exceed the Lower Earnings Limit (LEL), currently £125/week for 2025-26 and £128/week for 2026-27 (confirmed by HMRC).

3.3 Period of Incapacity for Work (PIW)

Must be sick for at least 4 consecutive days (including weekends and non-working days). Days 1–3 are typically waiting days (not paid as SSP, though see Section 5).

3.4 Notification

Employee must notify employer of sickness within the timeframe set by employer (no later than 7 days under regulation 7).

3.5 Evidence

Employer can require self-certification for the first 7 days and a fit note (Med 3) thereafter from a registered healthcare professional.

4. Linking PIWs

If an employee has two PIWs separated by 8 weeks or less, the periods are linked and form a single PIW for the 28-week maximum. This affects:

• Whether new waiting days apply (no — already served)
• Whether fresh notification needed (yes — normal rules)
• Cumulative SSP entitlement (counts toward 28 weeks)

5. Waiting Days — A Disappearing Concept

Currently, days 1–3 of a PIW are waiting days under section 155 SSCBA 1992 and not paid. However:

• COVID-19 emergency legislation suspended waiting days from 13 March 2020 to 24 March 2022
• The Employment Rights Bill 2025 proposes to abolish waiting days entirely, making SSP payable from day one
• The Bill also proposes to abolish the LEL test, opening SSP to lower-paid workers currently excluded

Implementation expected through 2026-2027 by regulation.

Reference: https://www.gov.uk/government/publications/the-employment-rights-bill-roadmap-for-implementation

6. Calculating SSP

Step 1 — Identify Qualifying Days

Qualifying days are the days agreed in the contract as days the employee is required to work. Most contracts specify Monday-Friday (5 qualifying days) but unusual arrangements (4-day week, weekend work) need adjustment.

Step 2 — Calculate Daily Rate

Weekly SSP rate ÷ qualifying days in week = daily rate. Example: £118.75 ÷ 5 = £23.75/day

Step 3 — Apply Waiting Days (until abolished)

Days 1–3 of PIW = unpaid (current regime).

Step 4 — Pay for Each Qualifying Day from Day 4

Up to 28 weeks total.

Step 5 — Manage End of Entitlement

At 28 weeks, employer issues form SSP1 (transfer to Universal Credit / ESA).

7. Record-Keeping

Under regulation 13 of the Statutory Sick Pay (General) Regulations 1982, employers must keep:

• Dates of PIWs, SSP paid, and qualifying days
• Records for 3 years after the end of the tax year

HMRC can inspect SSP records during PAYE compliance reviews.

8. Recovery — Statutory Sick Pay Rebate

The Percentage Threshold Scheme allowing small employers to recover SSP from HMRC was abolished in April 2014. Currently, employers bear the full cost of SSP.

The Employment Rights Bill 2025 proposes a rebate scheme for small and medium-sized employers to offset the cost of removing waiting days and the LEL — implementation details to be set by regulation.

9. Interaction with Contractual Sick Pay

Many UK Ltds offer contractual sick pay (occupational sick pay) that exceeds SSP. The contract typically:

• Pays full salary for an initial period (e.g., 4 weeks per year)
• Pays half salary for a further period
• Falls back to SSP after contractual entitlement is exhausted

Contractual sick pay may absorb SSP — the employer pays the contractual amount and treats SSP as included. Best practice is to specify this clearly in the section 1 ERA statement.

10. SSP and Industrial Action

Under section 152(2) SSCBA 1992, an employee on strike is not entitled to SSP for any day of incapacity falling within the strike period.

11. SSP and Pregnancy

SSP and Statutory Maternity Pay (SMP) do not run concurrently. From 4 weeks before the EWC (Expected Week of Confinement), pregnancy-related sickness triggers automatic start of maternity leave under section 73 ERA 1996.

12. Common Mistakes — Gyoseishoshi View

13. Disability and Reasonable Adjustments

Where the underlying condition is a disability under the Equality Act 2010, employers must consider reasonable adjustments under sections 20–22 (e.g., phased return to work, modified duties, additional sick leave above SSP). Failure to consider such adjustments alongside SSP can give rise to disability discrimination claims.

14. Long COVID and Other Long-Term Sickness

Long COVID is now widely recognised as capable of being a disability. The combination of SSP (28 weeks), occupational sick pay (variable), and reasonable adjustments forms the framework for managing long-term sickness absence. After 28 weeks of SSP, the employee transfers to Universal Credit / Employment and Support Allowance (ESA), but the employer’s continuing obligations under unfair dismissal law and the Equality Act 2010 do not end.

Conclusion — A Modest Payment with Outsized Compliance

SSP is small in monetary terms but rich in compliance friction. Eligibility tests, qualifying-day calculations, waiting-day rules (until abolished), evidence requirements, record-keeping, and the interplay with disability law all require attention. The Employment Rights Bill 2025 will simplify some elements (waiting days, LEL) while adding a rebate to cushion small employers.

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Disclaimer

Legal information, not legal advice. MmowW Scrib🐮 is operated by a licensed Gyoseishoshi (行政書士) office in Japan. We are not UK solicitors.

Sources

• SSCBA 1992 Part XI: https://www.legislation.gov.uk/ukpga/1992/4/part/XI
• Statutory Sick Pay (employer guidance): https://www.gov.uk/employers-sick-pay
• Statutory Sick Pay (General) Regulations 1982: https://www.legislation.gov.uk/uksi/1982/894/contents
• Employment Rights Bill roadmap: https://www.gov.uk/government/publications/the-employment-rights-bill-roadmap-for-implementation