What Is SSP? Understanding Statutory Sick Pay Obligations For UK Employers

If you run a business or are just about to hire your very first employee, the question, “what is SSP?” probably pops up at some point. Handling sick leave in the UK is a major responsibility for employers, and getting it wrong can lead to headaches-for you and your team. The rules around Statutory Sick Pay (SSP) can seem a bit daunting, especially when your priority is running your business smoothly.

But don’t stress-with the right information, you can set up simple, compliant systems that keep your business protected and your employees reassured. Ready to make sense of what SSP is and what it means for your SME? Keep reading to get everything you need to know, including compliance tips, practical steps, and expert guidance for UK employers managing sick pay.

What Is SSP? The Basics Every Employer Needs To Know

Let’s start simply. “SSP” stands for Statutory Sick Pay. It’s the legal minimum amount you must pay eligible employees when they’re off sick, as required by UK employment law.

• SSP is currently set at £116.75 per week (from April 2024)-this figure usually changes slightly each tax year.
• It’s paid for up to 28 weeks of sickness.
• You pay SSP to employees through your normal payroll, just as you would their usual salary.

SSP is designed to provide a basic safety net for employees who are too unwell to work. It’s not meant to fully replace lost wages, but it ensures staff have some income while they recover. If you want to offer more generous sick pay, that’s up to you-but you can't give less than the statutory minimum.

Who Qualifies For SSP? Employee Eligibility Rules Explained

You might be wondering, “Does every sick day trigger SSP?” or “Are all employees covered?” Let’s clear up the specifics:

• Employees must be sick for at least 4 consecutive days (including non-working days, such as weekends and holidays) to start receiving SSP. The first three days are known as ‘waiting days’ and aren’t usually paid unless your contract or policy is more generous.
• They must earn an average of at least £123 per week (before tax)-this is called the Lower Earnings Limit and is recalculated each tax year.
• They must be employed by you under a contract or contract of service. That can include full-time, part-time, zero hours and agency workers, as long as their average earnings meet the threshold.

A quick note: agency workers and some casual or zero-hours staff are included if their average earnings hit the required limit. For more on different employment types, check out our guide to employees vs contractors.

Some categories aren’t eligible for SSP, including:

• Self-employed people
• Employees who have already received 28 weeks of SSP (and haven’t returned for 8 weeks or more)
• Employees on maternity, paternity, adoption or shared parental leave
• Employees in legal custody (e.g. prison)
• Employees who have had a series of linked sick periods (each 8 weeks apart or less) that add up to more than 3 years

Worried about ambiguous cases? It can be unclear if someone is an “employee” under the law-so don’t go it alone! Speak to a legal expert if you’re unsure about SSP entitlement for a particular worker. Learn more about worker vs employee status here.

How Do You Calculate And Pay SSP?

SSP calculations may sound intimidating, but they’re actually pretty straightforward. Here’s your step-by-step checklist:

1. Identify the qualifying days. These are the days the employee normally works (as per their contract or working pattern).
2. Apply the ‘waiting days’ rule. The employee won’t receive SSP for the first 3 qualifying days off sick-these are unpaid unless you offer extra in your sick pay policy.
3. Start payments from day 4. SSP kicks in on the fourth consecutive qualifying day of absence due to illness or incapacity.
4. Use the set weekly SSP rate. Divide the weekly SSP rate by the number of qualifying days in the week to work out the daily SSP, then multiply by days off sick.
5. Continue for up to 28 weeks. The entitlement resets after a significant gap of 8 weeks without any sick days.
6. Pay on usual payday. Employees should see their SSP paid alongside any normal wages, with tax and National Insurance deducted as usual.

You’ll need to keep records of absences and SSP payments for at least 3 years. For more recordkeeping guidance, visit our article on employment records and commercial obligations.

When Must Employees Provide Evidence Of Illness?

Many employers ask, “Can we request a doctor’s note every time?” The answer-usually no, at least not straight away.

• For the first 7 calendar days of illness, employees can self-certify using your company’s self-certification form or a standard HMRC template.
• If the illness lasts more than 7 days, then you may ask the employee to provide a doctor’s “fit note.”

You cannot insist on a fit note for absences under 7 days, even if you suspect someone’s taking advantage. For longer absences, you’re entitled to see further medical evidence-but there are data privacy rules around handling this information, too. Not sure what’s compliant? Get expert advice, and remember to keep all health data confidential, as required by data protection laws like the UK Data Protection Act 2018.

What Should An SSP Policy Include?

Having a clear and up-to-date sickness absence policy is crucial for setting expectations and avoiding disputes. A good workplace SSP policy should explain:

• Who qualifies for SSP and what the criteria are
• How to report sick leave and who employees should contact
• Evidence requirements (self-certification, fit notes, deadlines for submitting them)
• How and when SSP will be paid
• The company’s position on pay during waiting days, and any extra sick pay offered
• Procedures for repeated or long-term sick absence

Remember: your written policy (ideally in your staff handbook) is just as important as the law itself. It prevents misunderstandings and helps protect you from claims if an employee disputes their entitlement.

SSP And Beyond: What If You Offer Occupational (Company) Sick Pay?

Some businesses choose to enhance employee support by providing more than the minimum. This is called Occupational or Company Sick Pay.

• You can offer sick pay at a higher rate or for a longer period than SSP (or even from day 1, rather than after 3 waiting days).
• But you can’t pay less than SSP or have a more restrictive eligibility threshold than the statutory minimum.
• Make sure your policy is very clear in contracts and your staff handbook about what level of sick pay is provided, for how long, and under what circumstances.

Confused about the best approach for your company? A bespoke employment contract is the safest way to spell out your company’s rules.

Legal Requirements And Your Risks If You Ignore SSP Rules

You are legally required to pay SSP if an eligible employee is off sick, provided they follow company absence procedures. If you refuse, underpay, or apply more restrictive conditions, you’re risking:

• Employment tribunal claims (for unlawful deduction of wages or unfair dismissal)
• HMRC compliance penalties and investigations
• Reputational damage and employee distrust

The UK’s Employment Rights Act 1996 and Statutory Sick Pay (General) Regulations 1982 are the anchors here-both require SSP to be paid if eligibility is met. All your sick pay procedures, records, and notifications should align accordingly. If SSP rules are breached, employees can seek resolution via HMRC, then employment tribunals.

Don’t treat sick pay as an afterthought-SSP is not optional for eligible workers. If this feels overwhelming, seek legal help to review or overhaul your policies and reinforce your compliance framework.

Managing Long-Term Or Frequent Sickness Absence

Chronic absences and long-term illness create complexity. If an employee remains unfit for work after 28 weeks of SSP, several scenarios can unfold:

• SSP entitlement stops, but other benefits-like Employment and Support Allowance-may kick in (handled by DWP, not the employer).
• You should consult with HR and get legal advice if you’re considering dismissing an employee for long-term ill health-there are extra legal hurdles under disability and unfair dismissal laws.
• Disability discrimination laws apply-reasonable adjustments may be needed for those with health conditions under the Equality Act 2010. Read our guide: Understanding Disability Discrimination Laws in UK Workplaces.

Always tread carefully and get expert help before ending any contract due to sickness. Mishandling it risks costly tribunal claims.

Can You Claim SSP Costs Back From HMRC?

Currently (as of 2024), most employers cannot reclaim SSP from HMRC. SSP is generally a business cost, paid just like wages. The government’s COVID-19 temporary rebate for small businesses ended long ago, and only in very rare circumstances (such as certain redundancies) can limited recovery occur. Always check the HMRC site or consult your accountant if you’re unsure about any available government support around sick pay.

SSP And Recordkeeping: Your Employer Duties

Even if your team’s absences are rare, documentation is essential. You must keep records showing:

• The dates and duration of each sickness absence
• SSP payments made (including amounts and periods covered)
• Any medical evidence or fit notes received
• Any correspondence about SSP eligibility decisions

Keep these records for at least three years after the end of the relevant tax year. Poor recordkeeping is an easy way to land in hot water if HMRC conducts a spot check or an employee claims underpayment. For best practices in employment compliance and making sure your documentation is up to par, browse our advice on staff handbooks and policies.

Other Key Laws Overlapping With SSP

While SSP is covered by its own set of rules, employment law doesn’t stop there. Make sure you comply with:

• The Employment Rights Act 1996: spells out employee rights on pay, sick leave, and terms of employment
• The Equality Act 2010: requiring you to make reasonable adjustments for employees with disabilities (don’t accidentally discriminate due to absence relating to a disability)
• The General Data Protection Regulation (GDPR): governs how you handle employees’ sensitive health data; see our data protection guide

Review your contracts and employment management processes to ensure all legal duties are met.

Key Takeaways: What Is SSP And What Employers Must Remember

• Statutory Sick Pay (SSP) is the legal minimum sick pay employers must provide to eligible employees in the UK-currently £116.75/week for up to 28 weeks.
• Eligibility includes 4+ consecutive sick days, minimum earnings, and status as an employee (with some exclusions).
• Employers must pay SSP via payroll, deduct tax/NI as usual, and keep records for at least 3 years.
• You must not place extra barriers on SSP or pay less than the statutory rate-even with your own sick pay policy.
• Legal compliance is essential: breaching SSP rules risks tribunal claims, HMRC penalties, and reputational damage.
• Clear, up-to-date SSP and sick leave policies protect your business and help manage absence effectively.
• Always get tailored advice-especially for complex scenarios like long-term absence, disability, or when updating contracts and handbooks.

Final Thoughts: Need Help With SSP Compliance?

Managing sick pay needn’t be overwhelming. By understanding what SSP is, documenting your approach, and following the rules, you can keep your business legally compliant and your team supported. If you’d like help upgrading your sickness absence policy, reviewing your contracts, or resolving an SSP dispute, we’re here to help.

Contact us for a free, no-obligations chat at team@sprintlaw.co.uk or call 08081347754. Our friendly team can guide you through every step, so you’re protected from day one.