Statutory sick pay in the United Kingdom: the employer process
Reviewed by Mellow Editorial Team, HR & payroll content team
Statutory Sick Pay (SSP) is a legal minimum payment employers must make to eligible employees who are too ill to work. The current rate and eligibility rules are set by HMRC, and the employer is responsible for administering and funding the payments directly through payroll.
Who qualifies for SSP
An employee qualifies if they meet three conditions:
- They are classed as an employee (not a worker or self-employed contractor)
- They earn at least the Lower Earnings Limit averaged over their pay period
- They have been ill for four or more consecutive days, including non-working days
Those four consecutive days are called a "period of incapacity for work" (PIW). The first three qualifying days — called waiting days — are not paid. SSP starts from the fourth qualifying day onwards.
Employees on zero-hours contracts can qualify, provided they meet the earnings threshold. Workers, self-employed individuals, and employees who have already exhausted their maximum SSP entitlement in the current period do not qualify.
The waiting days rule and when payment begins
Because the first three days of a PIW are waiting days, an employee who falls ill on a Monday and returns the following Monday would only receive SSP from Thursday onwards (assuming they work Monday to Friday). This applies each time a new PIW begins, unless a previous PIW ended fewer than eight weeks earlier. Linked PIWs are treated as a single period, so if an employee is ill again within eight weeks, waiting days do not apply a second time.
What employers must do, step by step
1. Obtain notification of absence
You can set your own rules for how employees report sickness, as long as your requirements are reasonable and clearly communicated in your absence policy. You are entitled to ask for notification on the first day of absence.
2. Request fit notes if the absence extends beyond seven days
For absences of seven calendar days or fewer, self-certification is sufficient. From day eight onwards, you can require a fit note (previously called a sick note) from a GP or other authorised healthcare professional.
3. Determine eligibility
Check earnings against the Lower Earnings Limit, confirm employment status, and check whether a current PIW applies or whether this links to a previous one.
4. Pay SSP through payroll
SSP is processed through your normal payroll run and is subject to income tax and National Insurance in the same way as regular wages. Employee National Insurance is charged at 8% up to the upper earnings limit, then 2% above it. Employer National Insurance applies at 13.8%. SSP must be reported to HMRC via Real Time Information — submit a Full Payment Submission (FPS) on or before each payday as you would for any other payment.
5. Keep records
HMRC can ask you to demonstrate that SSP was calculated and paid correctly. Keep records of qualifying days, the dates SSP was paid, and any fit notes received. There is no prescribed format, but records should be retained for at least three years.
Can employers reclaim SSP from HMRC?
For most employers, the answer is no. The general rebate scheme was abolished years ago. The only exception is the Statutory Sick Pay Rebate Scheme, which HMRC has activated at specific times — most notably during the COVID-19 pandemic — to allow small employers to reclaim SSP for certain absences. Outside of a scheme activation, employers bear the full cost.
If SSP payments are creating significant cost pressure, the practical options are to review whether your contractual sick pay policy (if you have one that exceeds SSP) can be restructured, or to ensure your absence management processes are robust so that underlying issues are identified early.
When SSP ends and what comes next
SSP can be paid for a maximum of 28 weeks in a single PIW or series of linked PIWs. Once entitlement is exhausted, you must issue the employee with an SSP1 form. This form allows them to apply for Employment and Support Allowance or other relevant state benefits. Issuing the SSP1 promptly is a legal requirement, not optional.
If an employee remains unfit to return after their SSP entitlement ends, you will need to follow a fair process under employment law before any decision is made about their continued employment. The Employment Rights Act 2025 has strengthened day-one rights across a range of areas, so it is worth ensuring your sickness absence and dismissal procedures reflect current obligations rather than pre-2025 assumptions.
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