How does Statutory Sick Pay (SSP) work?

Statutory Sick Pay

Statutory Sick Pay (SSP) has been around for a long time. Originally introduced in 1983, it was then extended to cover 28 weeks of absence per year in 1985. Although it has been around a long time, Statutory Sick Pay still throws up many questions. Our blog today tries to solve some of those headaches and give you more confidence in implementing sick pay policies.

Who needs to pay SSP?

Let’s start with who actually needs to pay SSP? If you employ people in the UK, you need to pay them SSP if they meet the eligibility criteria. These criteria are as follows:

• The employee must have commenced work under their employment contract. 
• They must inform you of their absence in line with your policy.
• As soon as they are absent for more than 8 days, they must provide proof of their absence (typically by providing a fit note).

From 6 April 2026, there are no longer any waiting days or a lower earnings limit. Therefore SSP is payable to all who meet the above criteria from day one. This is a significant cost increase for business and therefore its even more important to manage absence consistently before this becomes a problem.

What amount of SSP do employees receive?

At the time of writing, employees receive £123.25 Statutory Sick Pay per week. If the average weekly earnings over the last 8 weeks is less than that, then the employee will receive 80% of their average weekly earnings.

Where the employee has less than 8 weeks service under their current contract, there is a specific method of calculating the weekly pay. See our blog on casual worker entitlement to SSP to learn more.

Can businesses claim back SSP?

Before 2014, eligible businesses could claim back some SSP but this has now ceased. Businesses can claim Employers Allowance of up to £2k p.a. towards their Class 1 National Insurance costs but this is not linked to SSP. 

Can employers pay more than SSP?

Absolutely! You can’t pay less than SSP but you can pay more than Statutory Sick Pay if you wish. Employers usually choose to enhance sick pay to improve employee engagement. With financial pressure being one of the great causes of stress in the workplace, the safety net of a more generous sick pay regime is helpful. It also will help to reduce ‘presenteeism’ where employees turn up to work when they aren’t fit to do so.

How do employers enhance their SSP?

Typically by extending a period of full pay or half pay for between 2 and 28 weeks. The amount offered often depends on the financial strength of the employer. However you can be too generous. Why? Because the financial imperative can sometimes be the main driver to force the return to work conversation. Therefore if you have a very long period of sick pay, there is little incentive for the employee to engage, especially in cases of mental health. Having a sick pay entitlement that provides sufficient pay to help someone take time to recover whilst not being too long is the optimum solution. If you want longer protection for your team, you can always consider offering an insured benefit to provide salary for a longer term (2 to 5 years typically). This way your employees are covered if they have a significant illness or injury without you having to bare the cost. Get in touch if you'd like to explore the options available to you.