Employee Earnings & Sickness Absence Details
📊 SSP Qualification Financial Breakdown
If you are an employee in the UK taking time off work due to illness or injury, you may be legally entitled to Statutory Sick Pay (SSP) paid by your employer.
Under the historic Employment Rights Act 2025 (which became active on 6 April 2026), the UK statutory sick pay system underwent major changes to guarantee day-one payment rights to all workers and eliminate the earnings exclusions that previously blocked low-income workers from support.
⚙️ Statutory UK SSP Qualification Rules & Terms for 2026/27
1. Key SSP Qualification Criteria
To legally qualify for Statutory Sick Pay in the UK, an employee must:
- Be classed as an employee and have done work under their employment contract.
- Have a sickness absence of at least 1 day. Sickness is paid from Day 1 of their qualifying working days.
- Zero-hours, part-time, and agency workers qualify under identical rules.
2. Rates & Capped Earnings (The 80% AWE Cap)
- Standard Flat Rate: £123.25 per week.
- The 80% Earnings Cap: For workers with weekly earnings below £154.06, SSP is capped at 80% of their Average Weekly Earnings (AWE).
- Abolition of the LEL: The old Lower Earnings Limit (£123/week) has been abolished. Even employees earning very low wages (e.g., £50/week) are eligible, receiving a capped rate of 80% of their actual earnings.
- No Waiting Days: The old 3 unpaid waiting days are abolished. You are paid for every qualifying day of work you miss.
- Daily SSP Calculation:
Daily SSP Rate = Capped Weekly Rate ÷ Qualifying Working Days per Week.
3. Linked Sickness Periods & The 28-Week Limit
- Linked Sickness: Sickness periods separated by 8 weeks (56 days) or less are considered “linked” and count towards the overall 28-week maximum duration.
- Maximum 28-Week Cap: The maximum duration an employer pays SSP is 28 weeks. Once 28 weeks of SSP are exhausted, the employer issues Form SSP1, allowing the employee to claim Employment and Support Allowance (ESA) or Universal Credit from the DWP.
📊 Practical Statutory Sick Pay Worked Examples
Below are two worked calculation examples illustrating SSP qualification:
- Average Weekly Earnings: **£450.00 / week**
- Earnings Cap Check: 80% of AWE is £360.00, so flat rate of **£123.25/week** applies.
- Daily SSP Rate: £123.25 ÷ 5 days = **£24.65 / day**
- Payable Days: **10 qualifying working days** (no waiting days apply)
Calculation: 10 payable working days × £24.65 = £246.50 total SSP.
- Average Weekly Earnings: **£100.00 / week** (Previously ineligible under LEL rules)
- Earnings Cap Check: Capped at 80% of AWE = **£80.00 / week** weekly rate.
- Daily SSP Rate: £80.00 ÷ 5 days = **£16.00 / day**
- Payable Days: **10 qualifying working days**
Calculation: 10 payable working days × £16.00 = £160.00 total SSP.
📑 Common Pitfalls & SSP Warnings
- Self-Certification vs Medical Fit Notes (7-Day Rule): Employees can self-certify sickness absence for up to 7 consecutive calendar days. If off sick for more than 7 days, you MUST provide your employer with an official doctor’s Fit Note (statement of fitness for work) from your GP or hospital.
- Confusing SSP with Occupational Contractual Sick Pay (OSP): SSP is the legal statutory minimum. Many UK employers offer Occupational / Contractual Sick Pay (e.g. 4 weeks full pay, followed by 4 weeks half pay). Your contract of employment specifies if OSP applies.
- Agency & Zero-Hours Contract Worker Rights: Agency workers and zero-hours contract workers ARE entitled to Statutory Sick Pay.
❓ Frequently Asked Questions (FAQ)
Yes. SSP is treated as normal earned income for tax purposes. PAYE Income Tax and Class 1 National Insurance contributions are deducted from SSP payments on your normal monthly payslip.
Form SSP1 is an official HMRC form issued by employers when an employee is ineligible for SSP or when 28 weeks of SSP have been exhausted. This form allows the employee to claim DWP Employment and Support Allowance (ESA).
Yes. Under UK employment law (Working Time Regulations), statutory paid annual leave (5.6 weeks per year) continues to accrue while an employee is off work on sick leave.
Under the Equality Act 2010 and Employment Rights Act 1996, employers must follow strict capability procedures before considering dismissal. If sickness is related to a recognized disability, employers must make reasonable adjustments.