Calculating sick pay correctly is essential for UK employers to comply with employment law and ensure employees receive their correct entitlement during illness.

Key Takeaways

  • SSP rate: £116.75 per week (2025/26)
  • 3 waiting days before SSP begins
  • Maximum 28 weeks SSP payment
  • Earnings must be at least £123 per week
  • Fit notes required after 7 days absence

SSP Rules

Eligibility

  • Employed by employer
  • Average earnings at least £123 per week
  • Sick for more than 3 days in a row (including non-working days)
  • Not self-isolating (unless COVID-related)

Payment Rules

  • Waiting period: 3 consecutive days (waiting days)
  • Maximum duration: 28 weeks
  • Weekly rate: £116.75 (2025/26)
  • Daily rate: £116.75 ÷ number of qualifying days

Qualifying Days

  • Normal work days - days employee would normally work
  • Include days employee would have worked if not sick
  • Exclude days employee would not have worked anyway

Calculation Method

Step 1: Check Eligibility

Criteria Requirement Employee
Employment status Employed [Yes/No]
Average weekly earnings At least £123 [Amount]
Length of absence More than 3 days [Days]
Waiting period 3 days completed [Yes/No]

Step 2: Calculate Daily Rate

Daily SSP Rate = £116.75 ÷ Number of Qualifying Days

Example:

  • Qualifying days: 5 per week
  • Daily rate: £116.75 ÷ 5 = £23.35

Step 3: Calculate Payment

SSP Payable = Daily Rate × Days to be Paid

Example:

  • Daily rate: £23.35
  • Days to be paid: 5 days
  • Total SSP: 5 × £23.35 = £116.75

Calculation Examples

Example 1: Standard 5-Day Worker

  • Qualifying days: 5 per week
  • Absence: 10 days (including 2 weekend days)
  • Waiting days: 3 days (first 3 qualifying days)
  • Days paid: 5 days (remaining qualifying days)
  • Daily rate: £116.75 ÷ 5 = £23.35
  • Total SSP: 5 × £23.35 = £116.75

Example 2: Part-Time Worker (3 days)

  • Qualifying days: 3 per week
  • Absence: 8 days (including 2 weekend days)
  • Waiting days: 3 days (first 3 qualifying days)
  • Days paid: 1 day (remaining qualifying day)
  • Daily rate: £116.75 ÷ 3 = £38.92
  • Total SSP: 1 × £38.92 = £38.92

Example 3: Long-Term Absence

  • Qualifying days: 5 per week
  • Absence: 10 weeks
  • Waiting days: 3 days (first week only)
  • Weeks paid: 9 weeks + 2 days
  • Weekly rate: £116.75
  • Total SSP: 9 × £116.75 + (2 × £23.35) = £1,054.05

Payment Periods

Week 1

  • Days 1-3: Waiting days (no pay)
  • Days 4-7: SSP payable (if qualifying days)

Week 2 onwards

  • Full week: £116.75 (if qualifying days)
  • Part week: Pro-rata for qualifying days

Maximum Payment

  • 28 weeks: Maximum SSP duration
  • Total maximum: 28 × £116.75 = £3,269
  • After 28 weeks: No more SSP payable

Managing SSP

For Employers

  1. Check eligibility - earnings and employment status
  2. Record absence - start date and duration
  3. Calculate payment - using SSP rules
  4. Pay SSP - on normal pay day
  5. Keep records - for 7 years minimum

For Employees

  1. Report absence - notify employer promptly
  2. Provide medical evidence - fit note after 7 days
  3. Check entitlement - ensure SSP calculated correctly
  4. Understand limits - 28 weeks maximum
  5. Seek advice - if rights not respected

Social Security Contributions and Benefits Act 1992

  • Section 151 - entitlement to SSP
  • Section 152 - amount of SSP
  • Section 153 - duration of SSP
  • Protection - applies to all employees

Employment Rights Act 1996

  • Section 13 - entitlement to paid holiday
  • Section 14 - payment for holiday
  • Section 15 - carryover of holiday
  • Protection - applies during sick leave

Compliance Checklist

  • Employee eligibility verified
  • Average weekly earnings calculated
  • Waiting period applied (3 days)
  • SSP calculated correctly
  • SSP paid on normal pay day
  • Records maintained for 7 years
  • Fit notes obtained after 7 days
  • Employee informed of entitlement
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