How Much is Statutory Sick Pay – UK Rates and 2026 Reforms

Statutory Sick Pay provides a financial lifeline to UK employees unable to work due to illness, establishing a floor below which no employer can fall. Understanding the current rates, eligibility criteria, and upcoming reforms under the Employment Rights Bill helps both workers and employers navigate their rights and obligations.

The weekly rate stands between £116.75 and £118.75 depending on your source, though official government channels confirm the figure at £116.75 from April 2024. Employees receive whichever is lower: the flat rate or 80% of their average weekly earnings, paid through the PAYE system on normal paydays.

From April 2026, major changes arrive. The Employment Rights Bill removes the three-day waiting period, extends eligibility to all employees regardless of earnings, and sets the weekly rate at £123.25. These reforms represent the most significant overhaul of sick pay in decades.

How Much is Statutory Sick Pay?

Key Points About SSP Rates

• The weekly amount is £116.75 (April 2024 rate), rising to £118.75 from April 2025, before reaching £123.25 in April 2026
• Employees receive whichever is lower: the flat rate or 80% of their average weekly earnings calculated over the previous 8 weeks
• Payments apply only to qualifying days—typically the days an employee would normally work
• Before April 2026, the first three days of sickness (waiting days) carry no pay
• From April 2026, employees receive sick pay from day one of illness with no waiting period
• The daily rate varies based on how many days per week someone normally works
• SSP rounds up to the nearest penny and gets paid alongside regular wages on the normal payday

Current SSP Snapshot

Who Qualifies for Statutory Sick Pay?

Current Eligibility Requirements

Under the existing rules in place until April 2026, employees must satisfy three main conditions. First, they need a contract of employment in place. Second, their average earnings must reach at least the Lower Earnings Limit of £123-£129 per week. Third, they must provide proof of illness through a fit note or self-certification, depending on the duration.

Average weekly earnings get calculated using all Class 1 National Insurance-liable payments received over the preceding eight weeks. This means bonuses, overtime, and regular commission payments factor into the calculation. Self-employed individuals fall outside this framework entirely and cannot claim SSP.

Eligibility Changes from April 2026

The Employment Rights Bill fundamentally transforms access to sick pay. From 6 April 2026, every employee qualifies regardless of their earnings level. The Lower Earnings Limit disappears completely. New starters receive protection from their very first day of employment, removing barriers that previously excluded part-time and low-hour workers.

Part-Time and Variable-Hour Workers

Currently, part-time employees qualify if they meet the earnings threshold. A worker contracted for 12 hours per week at minimum wage typically earns enough to qualify. The pro-rata calculation applies to their qualifying days, ensuring they receive a fair daily rate proportional to their contracted hours.

For those with variable hours, the eight-week averaging method captures fluctuations in pay. Someone who works more hours in some weeks may find their average exceeds the threshold even if individual weeks fall below it.

How Long Do You Get Statutory Sick Pay For?

Maximum Duration and Continuity

The total period of SSP stretches to 28 weeks per period of sickness. This period resets once an employee returns to work for at least eight consecutive weeks. If illness recurs within eight weeks of a previous claim, the SSP continues without restarting the waiting days requirement.

Several events can terminate SSP earlier than the 28-week maximum. These include returning to work, reaching the duration limit, ending employment, or switching to statutory maternity or adoption pay.

When Payments Start

Until April 2026, the first three days of sickness—the waiting days—carry no SSP payment. Employees must self-certify for absences lasting up to seven days. For longer periods, a fit note from a GP or healthcare professional becomes necessary.

From April 2026, this waiting period disappears entirely. Employees receive payment from their first day absent due to illness. This shift particularly benefits those with short-term illnesses who previously lost pay during the waiting days.

Is Statutory Sick Pay Taxable and How Does it Compare to Company Sick Pay?

Tax and National Insurance Treatment

SSP counts as earned income subject to income tax and National Insurance contributions. Employers deduct these amounts through the PAYE system at the same time as regular wages. The net amount employees receive reflects standard tax code calculations.

This taxable status means SSP reduces entitlement to means-tested benefits like Universal Credit. Employees receiving SSP must report it to the Department for Work and Pensions as income. Those with minimal or no SSP may qualify for additional Universal Credit elements related to limited capability for work.

Contractual Sick Pay Schemes

Many employers supplement SSP with enhanced contractual sick pay schemes offering full pay for specified periods. Where contractual pay exceeds SSP, employers pay the higher amount. Where contractual pay falls below SSP, the statutory amount tops up the difference.

SSP represents the legal minimum that employers must provide. Workers should check their employment contracts for details of any enhanced schemes. Union members may benefit from collectively bargained agreements that exceed statutory minimums.

SSP Rate Changes Over Time

1. April 2023: Rate set at £109.40 per week for the 2023-24 tax year
2. April 2024: Increased to £116.75 per week, a 6.7% rise matching inflation
3. April 2025: Further increase to £118.75 per week
4. April 2026: Rise to £123.25 per week following the Employment Rights Bill implementation, with universal eligibility and day-one payments beginning

Rates get confirmed annually each April. The 2026 increase reflects a 3.8% adjustment linked to CPI inflation. Future increases will likely follow earnings growth or inflation, though the government has not committed to a specific uprating mechanism beyond annual reviews. For those interested in how much money one receives after military service, information on Hur mycket pengar får man efter lumpen is available.

What We Know and What Remains Uncertain

The Role of Statutory Sick Pay in the Benefits System

SSP occupies a specific position within the broader UK social security framework. It transfers responsibility for short-term illness pay from the state to employers, creating a hybrid system where government sets minimum standards but businesses fund day-to-day payments. This arrangement incentivises employer investment in workplace health and sickness absence management.

The system coexists with Employment and Support Allowance (ESA), which provides income replacement for those with longer-term health conditions. Workers who exhaust their 28 weeks of SSP may qualify for ESA if their illness continues. Self-employed individuals, excluded from SSP, can access ESA through Class 2 and Class 3 National Insurance contributions.

Universal Credit interacts with SSP as both a supplement for those on low incomes and as an income reducer for higher earners. The Department for Work and Pensions requires notification of SSP awards, which get factored into benefit calculations. Understanding these interactions helps employees maximise their total income during illness.

Official Sources and Government Guidance

“SSP is the legal minimum employers must pay employees who are too ill to work. It is not the same as company sick pay, which may be more generous.”

Gov.uk – Statutory Sick Pay guidance

The Social Security Contributions and Benefits Act 1992 establishes the foundational legal framework for SSP. The Employment Rights Bill 2025 introduces the upcoming reforms set to reshape the landscape from April 2026.

Official guidance comes from Gov.uk for rate and eligibility details, Acas for employment rights, and specialist payroll providers for calculation tools.

Summary

Statutory Sick Pay provides essential financial protection for UK employees during illness, currently offering up to £116.75 per week through the PAYE system. The rate increases annually, reaching £123.25 by April 2026 when major reforms remove waiting days and extend eligibility to all workers regardless of earnings. Understanding these rates, eligibility rules, and the interaction with tax and benefits helps employees plan for unexpected illness and ensures they receive their full entitlements.

Frequently Asked Questions