Statutory Sick Pay 2026/27: Employee Rights and Employer Obligations

1. What is Statutory Sick Pay?

Statutory Sick Pay is a legal minimum payment that qualifying employees receive from their employer during periods of illness. It is set by the government and reviewed annually. For the 2026/27 tax year the SSP rate is £116.75 per week.

SSP is not a benefit paid by the government — it comes directly from your employer, who must fund it in full. It is paid in the same way as your normal wages (weekly or monthly) and is subject to the usual PAYE deductions for income tax and National Insurance.

The rules governing SSP are set out in the Social Security Contributions and Benefits Act 1992 and updated through annual regulations. Employers cannot pay less than the statutory rate, but many offer enhanced contractual sick pay on top.

SSP applies in England, Scotland and Wales. Northern Ireland has its own separate statutory sick pay scheme with identical rates but different administration.

2. Eligibility criteria

To qualify for SSP in 2026/27 you must meet all of the following conditions:

Who cannot claim SSP?

Certain categories of worker are excluded from SSP regardless of their earnings:

• Self-employed individuals (consider income protection insurance instead)
• Employees who have already received 28 weeks of SSP and are still sick
• Employees who became sick during a trade dispute (unless they were not involved in it)
• Pregnant employees within their Maternity Pay Period — they receive Statutory Maternity Pay (SMP) at £184.03/week or 90% of average weekly earnings for the first 6 weeks instead
• Employees who are in legal custody
• Employees who have received Employment and Support Allowance within the previous 12 weeks (the linking rules apply)

3. Waiting days explained

The first 3 qualifying days of any Period of Incapacity for Work are called waiting days. SSP is not payable for these days. This means SSP only begins on the 4th qualifying day of illness.

Qualifying days are typically the days you are contracted to work, although HMRC rules allow employers to agree different arrangements. Weekends and bank holidays count as qualifying days if they fall within your normal working pattern.

Linked periods and waiting days

If you have more than one Period of Incapacity for Work and they are separated by fewer than 8 weeks, they are treated as a single linked period. Crucially, you only serve waiting days once in a linked period — if you return to work and then fall ill again within 8 weeks, SSP begins immediately from the first day of the new absence.

This linking rule is particularly important for employees with chronic conditions who may have recurring periods of illness.

4. Employer obligations

Employers have a range of legal duties relating to SSP. Failure to comply can result in penalties from HMRC and employment tribunal claims from employees.

Core duties

Evidence and fit notes

For the first 7 days of absence, employees can self-certify their illness. Employers cannot legally demand a fit note (formerly a sick note) for absences of 7 days or fewer, though they can ask employees to complete a self-certification form.

From day 8 onwards, employers are entitled to require a fit note from a qualified healthcare professional. Fit notes can be issued by GPs, nurses, pharmacists, physiotherapists and occupational therapists. Since 2022, fit notes can be issued digitally rather than on paper.

5. Tax and National Insurance on SSP

SSP is fully taxable income and is also subject to National Insurance contributions. Here is how the 2026/27 rates apply:

Income tax

SSP of £116.75 per week equates to approximately £6,071 per year if you receive it for the full 28 weeks. This is well below the Personal Allowance of £12,570, so if SSP is your only income you will pay no income tax at all.

However, if you receive SSP alongside other income (for example if you return to work part-time while still receiving contractual sick pay, or have income from savings, rental property or other sources), your combined income could push you into the basic rate band (20% on income between £12,571 and £50,270).

National Insurance

Employee NI for 2026/27 is charged at:

• 8% on weekly earnings between £242 and £967 (the Primary Threshold and Upper Earnings Limit)
• 2% on weekly earnings above £967

The weekly Primary Threshold in 2026/27 is £242. Since SSP at £116.75 per week falls below this threshold, employees receiving only SSP will not pay any National Insurance either.

Employer NI is charged at 15% on earnings above the Secondary Threshold of £5,000 per year. Because SSP annualised is approximately £6,071 — just above the secondary threshold — employers may owe a small amount of employer NI on SSP payments. However, many small employers with employer NI bills under £10,500 will be protected by the Employment Allowance.

6. Linked periods and SSP limits

The maximum amount of SSP you can receive is 28 weeks. Once that is exhausted you cannot receive further SSP until a new entitlement is established. A new entitlement arises only when:

• You have been absent for 28 weeks and then returned to work healthy for at least 8 weeks before falling ill again (the linking period), OR
• You change employer and start a new period of sick leave

How linked periods work

Two or more Periods of Incapacity for Work are treated as a single linked period if the gaps between them are each less than 8 weeks. This has two important consequences:

1. You only serve waiting days once across the entire linked period, so SSP starts immediately if you return to work and fall ill again within 8 weeks.
2. The 28-week SSP entitlement runs across all linked periods combined, not separately for each absence. If you had 15 weeks of SSP in one absence and then fell ill again within 8 weeks, you would have only 13 weeks of SSP remaining.

Employers must keep accurate records of all SSP periods to calculate how much entitlement remains. HMRC can ask to see these records during a compliance check.

7. What happens after SSP ends?

When you have exhausted your 28 weeks of SSP and remain unable to work, your employer must issue form SSP1. This document confirms you are no longer receiving SSP and is required when making benefit claims.

Benefits you may be able to claim

Returning to work after long-term illness

Your employer may offer a phased return to work, reduced hours or adjustments to your role under their duty to make reasonable adjustments (if you have a disability within the meaning of the Equality Act 2010). A fit note from a healthcare professional can support a phased return by specifying what you can and cannot do.

8. Contractual sick pay and SSP

Many employers offer contractual sick pay — often called "company sick pay" or "occupational sick pay" — which is more generous than SSP. This is not a legal requirement but is a common workplace benefit set out in your employment contract.

How contractual sick pay interacts with SSP

Contractual sick pay can operate in two ways:

• Inclusive of SSP: The employer pays full or partial salary during sick leave and counts SSP within that payment. No additional SSP is due.
• In addition to SSP: The employer pays full salary on top of SSP. This is less common as it effectively means the employee is paid twice.

Your employment contract should make clear which approach applies. If contractual sick pay is lower than SSP, the employer must still pay at least the statutory minimum of £116.75/week.

Typical contractual sick pay arrangements

If you have more than one job, SSP is assessed independently for each employment. You could theoretically receive SSP from multiple employers simultaneously if you are incapacitated across all your jobs.

Frequently Asked Questions