Sick pay in the United Kingdom: what employers must provide
Reviewed by Mellow Editorial Team, HR & payroll content team
Employers in the UK must pay Statutory Sick Pay (SSP) to eligible employees who are too ill to work. Beyond SSP, many employers also offer enhanced contractual sick pay — but only SSP is a legal requirement.
Who qualifies for SSP
Not every worker qualifies automatically. To be eligible, an employee must:
- Be classed as an employee (not a self-employed contractor or a worker on a zero-hours contract who earns below the lower earnings limit)
- Earn at least the lower earnings limit (a threshold set each April — check the current HMRC figure before each tax year)
- Have been ill, or self-isolating for a valid reason, for at least four consecutive calendar days, including non-working days
Those four days are called "waiting days" (sometimes "qualifying days"). SSP does not start on day one of absence — it kicks in from the fourth day. That distinction catches many employers out, particularly during short bouts of illness.
Agency workers, directors who are also employees, and employees on fixed-term contracts can all qualify provided they meet the earnings and employment tests.
How much SSP is and how long it lasts
The SSP rate is set by the government and reviewed annually. Check the current weekly rate on GOV.UK each April, as it increases most years. Employees can receive SSP for a maximum of 28 weeks in a single period of sickness, or across linked periods of sickness (periods separated by fewer than eight weeks are treated as one continuous spell).
SSP is subject to income tax and National Insurance in the normal way. Employees pay employee National Insurance at 8% on earnings up to the upper earnings limit, and 2% above it. Employers pay employer National Insurance at 13.8%. SSP sits within normal payroll processing — it is not a separate benefit paid directly by HMRC.
Employers can no longer reclaim SSP from the government (the Percentage Threshold Scheme that once allowed this was abolished). Some small employers may have access to recovery in specific circumstances — for example, during a government-declared pandemic — but outside those schemes, the cost sits entirely with the employer.
What employers must do in practice
Trigger the process correctly. Employees should notify you of absence in line with your sickness policy. You can ask for a "fit note" (previously called a sick note) from a GP or other approved healthcare professional if absence lasts more than seven consecutive days, including weekends.
Record keeping. You must keep records of SSP paid and of the dates of sickness. HMRC can ask to inspect these. There is no standard form required, but many payroll systems produce an SSP record automatically.
Process SSP through payroll. SSP is paid through your normal payroll run and reported to HMRC via Real Time Information (RTI) using a Full Payment Submission (FPS) on or before each payday. It should appear on the employee's payslip clearly labelled.
Issue an SSP1 form when SSP ends or when an employee is not eligible. This allows them to claim any state benefits they may be entitled to. You must issue it within seven days of SSP ending.
Contractual sick pay — going beyond the legal minimum
Many employers offer enhanced sick pay — for example, full pay for the first four weeks of absence, then half pay for the next four. This is entirely at your discretion and should be set out clearly in the employment contract or staff handbook.
If you offer enhanced sick pay, make sure the policy covers:
- How long enhanced pay lasts at each rate
- Whether it applies from day one or after a qualifying period of employment
- What happens to SSP during the enhanced-pay period (typically SSP counts towards the enhanced pay rather than being paid on top)
- Your right to require a fit note and, in some cases, an occupational health referral
A clear written policy protects both sides. It also helps line managers apply the rules consistently, which matters both for fairness and — given the strengthened day-one rights under the Employment Rights Act 2025 — for reducing exposure to disputes.
When SSP does not apply
SSP stops when an employee has exhausted their 28 weeks, when they return to work, or when their employment ends. If an employee becomes too ill to return and their SSP runs out, you must issue the SSP1 form so they can claim Employment and Support Allowance or Universal Credit.
Employees who are pregnant and whose illness is pregnancy-related in the four weeks before their expected week of childbirth should be moved onto Statutory Maternity Pay or Maternity Allowance rather than remaining on SSP — a specific rule that often gets missed.
How Mellow runs payroll across six countries on one platform covers how SSP and other statutory payments can be tracked without manual workarounds, which is useful if you manage employees across different jurisdictions.
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