Statutory Sick Pay (SSP): Quick Definition and UK Employer Obligations

Statutory Sick Pay (SSP) is a legal entitlement in the UK that requires employers to pay eligible employees a minimum weekly amount when they are unable to work due to illness. For the 2025–26 tax year, the SSP rate is £116.75 per week. SSP is payable for up to 28 weeks and is subject to a three-day waiting period (called “qualifying days”) before payments begin. Employers can choose to offer more generous occupational sick pay, but they cannot pay less than the statutory minimum.

Key Takeaways

• SSP is £116.75 per week for the 2025–26 tax year, payable for up to 28 weeks
• A three-day waiting period applies; SSP is not payable for the first three qualifying days of absence (unless the employer has an occupational sick pay scheme that waives this)
• Employees must earn at least the Lower Earnings Limit (£123 per week) to qualify for SSP

What SSP Means for Employers

SSP is a non-negotiable legal obligation for all UK employers, regardless of size. The employer bears the full cost of SSP; it is not funded by the government. For businesses with high absence rates, the cumulative cost of SSP can be significant. An employee earning above the Lower Earnings Limit who is absent for 28 weeks costs the employer £3,269 in SSP alone.

Compliance requires accurate record-keeping. Employers must maintain records of SSP payments, including the employee’s name, the dates of absence, the rate of SSP paid and the qualifying days. These records must be retained for at least three years after the end of the tax year in which the last payment was made. Failure to maintain records or pay SSP when due can result in enforcement action by HMRC, including penalty notices of up to £3,000 per employee.

The employer can recover some of the cost of SSP through HMRC’s statutory payment reclaim process. Employers who pay SSP can reduce their PAYE payments by the amount of SSP paid, provided they are not already reclaiming under an occupational sick pay scheme. For small employers (fewer than 250 employees), HMRC allows a flat-rate recovery of 13.8% of SSP paid.

SSP Rules by Region

Country	Rule	Detail
UK	Social Security Contributions and Benefits Act 1992	SSP of £116.75/week (2025–26); 28-week maximum; three-day waiting period; Lower Earnings Limit applies
AU	Fair Work Act 2009 (Cth)	No statutory sick pay equivalent to SSP; NES provides 10 days paid personal/carer’s leave per year
US	FMLA and state laws	No federal paid sick leave; some states (CA, NY, WA) mandate paid sick leave at varying rates

How SSP Works in Practice

A UK retail company with 80 employees processes SSP through its payroll system. When an employee, James, calls in sick on a Monday, the payroll team records the first three days (Monday, Tuesday, Wednesday) as “waiting days” and does not pay SSP for these days. SSP begins on Thursday (the fourth qualifying day) and is paid weekly at £116.75 for the duration of the absence.

If James’s absence extends beyond 28 weeks, SSP stops and the company has no further statutory obligation to pay, though it may choose to continue paying under its occupational sick pay scheme. The payroll team records the total SSP paid and deducts it from the PAYE liability in the next payroll run, reducing the company’s tax bill by the SSP amount.

Common Mistakes with SSP

• Paying SSP before the three-day waiting period has elapsed, which is not required and inflates costs
• Failing to pay SSP when the employee meets the qualifying conditions, which is a breach of the Social Security Contributions and Benefits Act 1992
• Not maintaining records of SSP payments for the required three-year retention period
• Confusing SSP with the employee’s contractual sick pay, which may be more generous
• Not reclaiming SSP through the PAYE system, leaving money on the table

FAQ

What is Statutory Sick Pay?

Statutory Sick Pay (SSP) is a UK legal entitlement that requires employers to pay eligible employees a minimum weekly amount (£116.75 for 2025–26) when they are off work due to illness, for up to 28 weeks.

Who qualifies for SSP?

Employees who earn at least the Lower Earnings Limit (£123 per week) and are absent from work due to illness for more than three consecutive qualifying days are eligible for SSP.

Can an employer pay more than SSP?

Yes. Many employers offer occupational sick pay schemes that are more generous than the statutory minimum. The scheme must be at least as favourable as SSP for the employee.