Statutory Sick Pay Calculation UK: The Complete 2026 SSP Guide

Statutory Sick Pay (SSP) represents the absolute minimum financial safety net that UK employers must legally provide to workers who are unable to perform their duties due to illness or physical injury. For decades, the statutory framework governing SSP remained relatively static, characterized by rigid rules regarding "waiting days" and minimum earnings thresholds. However, the implementation of the major 2026 UK employment reforms has completely transformed the sick pay landscape. These historic changes have dramatically expanded eligibility, removed long-standing waiting periods, and introduced a new method for calculating sick pay rates.

Whether you are an employer seeking to ensure absolute legal compliance in your payroll processing, an HR professional managing workplace absence, or an employee trying to understand how much money you will receive during a sickness absence, staying up to date with the current regulations is critical. How is Statutory Sick Pay calculated under the new rules? Who is eligible now that the old restrictions have been lifted? How do you calculate sick pay for part-time workers or those on irregular hours?

In this definitive guide, we will analyze the updated UK Statutory Sick Pay framework. We will explain the core 2026 reforms, provide a step-by-step SSP calculation walkthrough, detail the rules for part-time and shift workers, outline employer record-keeping obligations, and show how securing robust clinical evidence is essential to protect your statutory entitlements.

The Historic 2026 SSP Reforms Explained

To calculate Statutory Sick Pay correctly, you must first understand the fundamental changes that took effect on 6 April 2026. These reforms represent the most significant expansion of worker sick pay rights in a generation, removing administrative barriers that historically left low-income workers without financial support.

The three core pillars of the 2026 SSP reforms are:

• Removal of Waiting Days: Historically, SSP was not paid for the first three days of a sickness absence, known as waiting days; payments only began on the fourth consecutive day of illness. The 2026 reforms have completely abolished waiting days. SSP is now a day-one entitlement, meaning workers are eligible to receive sick pay from the very first day of their sickness absence.
• Abolition of the Lower Earnings Limit: Previously, workers earning less than the Lower Earnings Limit (LEL) of £123 per week before tax were completely excluded from receiving SSP. The 2026 reforms have eliminated the LEL restriction. All employees, regardless of how low their earnings are, now qualify for statutory sick pay.
• The New Two-Tier Rate Calculation: To protect low-earners while maintaining a statutory cap, the 2026 rules introduced a new calculation method. The standard flat rate of SSP is £123.25 per week. However, if a worker's average weekly earnings are below this standard rate, their SSP is calculated at exactly 80 percent of their average weekly earnings, ensuring they do not receive more in sick pay than they do in regular salary.

These reforms have made payroll administration more complex, as employers can no longer simply apply a flat weekly rate to all sick staff. Every employee's sick pay must be calculated based on their individual average earnings history.

To understand how these new sick pay rights apply to part-time or flexible staff, read our detailed guide on zero hour contract sick notes and SSP which analyzes eligibility for flexible workers.

By removing the three waiting days, the government has encouraged workers suffering from infectious illnesses (such as respiratory infections or gastrointestinal bugs) to stay at home immediately, preventing major outbreaks of illness within close workplace offices and manufacturing environments.

Interaction Between Statutory Sick Pay and Company Sick Pay

A key area of confusion for both payroll administrators and employees is the interaction between Statutory Sick Pay (SSP) and contractual Company Sick Pay (CSP). Many premium employers offer occupational or contractual schemes that pay full basic salary for a set number of weeks (e.g. 12 weeks of full pay followed by 12 weeks of half pay) during sickness absence.

Crucially, Statutory Sick Pay is not paid in addition to full basic salary under a CSP scheme. Under standard UK employment rules, employers are permitted to offset their statutory SSP liability against their contractual CSP payments. This means that if an employee receives £500 per week under their company sick pay scheme, the £123.25 of SSP is treated as being fully included within that £500, rather than added on top.

However, keeping an accurate record of SSP entitlement is still mandatory. If the company sick pay scheme expires after several weeks, the employee remains entitled to receive the remaining weeks of their 28-week Statutory Sick Pay allowance. Accurate record-keeping ensures that payroll can seamlessly transition the worker to basic SSP when contractual top-ups run out, preventing sudden gaps in income during long-term sickness recovery.

Step-by-Step SSP Calculation Walkthrough

Calculating Statutory Sick Pay under the current framework requires payroll administrators to follow a structured, compliant process. Here is the step-by-step walkthrough to calculate SSP for a sick employee:

1. Identify the Qualifying Days: Qualifying Days (QDs) are the days of the week that the employee normally works under their contract (for example, Monday to Friday). SSP is only paid for qualifying days that fall within the period of sickness absence.
2. Determine the Average Weekly Earnings: Calculate the employee's Average Weekly Earnings (AWE) over the standard eight-week reference period prior to their sickness. Add up all gross earnings paid in this period and divide by the number of weeks.
3. Apply the Two-Tier Rate check: Compare the employee's AWE to the standard flat SSP rate of £123.25 per week. If their AWE is £123.25 or higher, they receive the standard rate of £123.25 per week. If their AWE is less than £123.25, their SSP rate is exactly 80 percent of their AWE.
4. Calculate the Daily SSP Rate: To calculate the pay for a partial week of sickness, divide the weekly SSP rate (either £123.25 or the 80% AWE rate) by the number of qualifying days in the employee's normal working week. For example, if they work 5 days a week, divide by 5.
5. Multiply by the Days of Absence: Multiply the daily SSP rate by the number of sick qualifying days in the absence period to find the total gross SSP due.

Let us look at a practical calculation example. Suppose an employee works Tuesday to Thursday (3 qualifying days per week) and has average weekly earnings of £100 per week. Because their AWE (£100) is below the flat rate (£123.25), their SSP rate is 80% of £100, which equals £80 per week. The daily SSP rate is calculated as £80 divided by 3 qualifying days, which equals £26.67 per day. If they are sick for 3 qualifying days, they will receive exactly £80.00 gross SSP.

Employers must remember that SSP is subject to tax and National Insurance deductions, and must be paid through the regular PAYE payroll system on the employee's usual pay date.

Additionally, average weekly earnings calculations must include all elements of gross pay subject to class 1 National Insurance, which means statutory overtime, performance-related sales commissions, and shift bonuses must be factored in, rather than just the core base hourly wage rate.

Shift Patterns, Qualifying Days, and Irregular Hours

For employees with fixed contracts and standard working weeks (such as Monday to Friday), identifying qualifying days is simple. However, for workers with irregular shift patterns, rotating rosters, or zero-hour contracts, defining qualifying days requires careful attention to statutory rules.

Under DWP guidelines, if an employee's shift pattern varies from week to week, the employer and worker should agree on which days will be treated as qualifying days. If no agreement can be reached, the default statutory rules apply, which state that qualifying days are either:

• The days actually worked: The days that the employee was scheduled or expected to work in the week they fell ill, based on their active shift roster.
• The Wednesday of each week: If there is no shift pattern or history to establish scheduled days, Wednesday is treated the default statutory qualifying day of the week, meaning the employee receives 1/7th of the weekly SSP rate for each day off sick.
• A flat 7-day week: In some payroll agreements, the employer and employee agree to treat all seven days of the week as qualifying days to simplify daily rate calculations.

For zero-hour contract staff, average earnings are calculated by reviewing all earnings paid over the eight weeks prior to the absence. If they received zero pay in some weeks, those weeks are still included in the division, which will lower their average weekly earnings and consequently reduce their 80% SSP rate. However, they remain fully entitled to receive SSP from day one of their sickness.

Another critical rule is the "Linked Periods of Sickness." Under UK rules, if a worker has two or more periods of sickness absence that are separated by eight weeks (56 days) or less, they are treated as "linked" and part of a single continuous capacity claim. This is highly significant for payroll administrators, as it ensures that the 28-week maximum limit for SSP payments continues to accumulate across linked periods, rather than resetting to zero with each brief return to work.

If you are self-employed or operate as a sole trader and want to understand how sickness evidence is managed when you do not have a standard employer payroll, you can read our guide on sick notes for the self-employed to learn about your options.

Irregular working arrangements can also lead to disputes during public holidays. If a bank holiday falls on a day when a shift worker was contracted and scheduled to work but was absent due to illness, that bank holiday must be counted as a qualifying day for Statutory Sick Pay.

Employer Compliance, Records, and Disputes

UK employers face strict legal obligations regarding Statutory Sick Pay administration. Failure to calculate SSP correctly or refusing to pay it without a valid legal reason is a serious breach of employment law. To maintain compliance, employers must strictly observe these operational standards:

• No Retrospective Deductions: An employer cannot retrospectively deduct SSP or refuse payment if the employee provided a valid self-certification form for the first seven days, followed by a formal fit note for longer absences.
• Keep Rigorous Payroll Records: Employers must maintain accurate records of all employee sickness absences lasting four or more consecutive days, including the dates of absence and the precise SSP calculations and payments made. These records must be kept for at least three years for HMRC audit purposes.
• Issue Form SSP1 on Expiry: SSP has a strict statutory limit of 28 weeks. If an employee's sickness absence reaches 28 weeks, or if they do not qualify for SSP, the employer must legally issue form SSP1. This form explains why SSP is not being paid and allows the employee to claim Employment and Support Allowance (ESA) from the DWP.

Failure to comply with these rules can result in severe financial penalties from HMRC. If an audit reveals that an employer has systematically miscalculated average earnings or unlawfully withheld Statutory Sick Pay, HMRC can levy substantial statutory fines (up to £3,000 per incorrect record) and charge compound interest on all backdated amounts owed to employees.

If an employee believes their employer has calculated their SSP incorrectly, or is unlawfully refusing to pay it, they should first raise a formal internal grievance. If the dispute remains unresolved, the employee can contact the HMRC Statutory Payment Dispute Team. HMRC has the legal authority to investigate the case, perform a formal calculation audit, and order the employer to pay any outstanding sick pay.

How DoctorCert Supports Your SSP Entitlement

To secure your Statutory Sick Pay, you must provide your employer with robust, continuous medical evidence without any gaps. If your absence exceeds seven calendar days and you fail to supply a valid fit note, your employer is legally entitled to suspend your SSP payments immediately.

DoctorCert provides a secure, professional, and rapid online solution to ensure you maintain unbroken medical evidence:

• GMC-Registered UK Doctors: Every private medical certificate we issue is reviewed, approved, and signed by a doctor currently registered with the General Medical Council in the UK. Their credentials and GMC number are clearly visible on the PDF for easy HR and HMRC verification.
• Asynchronous Online Review: You complete a secure, structured online clinical assessment and upload supporting evidence (such as GP records, prescriptions, or clinic photos) from your home, completely eliminating the need for painful travel.
• Fast, Digital Turnaround: We deliver your digital PDF certificate within hours, allowing you to submit it to your employer immediately and prevent any delay in your SSP payments.
• Unique Verification Portal: Every DoctorCert certificate includes a unique verification code. Your employer can instantly verify the document's authenticity via our secure online portal, ensuring total confidence.

To review our straightforward fee structure, visit our pricing page to proceed with complete clarity. Our platform employs advanced bank-grade encryption to protect your sensitive personal health information (PHI) throughout the process, ensuring full compliance with UK data protection legislation.

Frequently Asked Questions

What is the weekly Statutory Sick Pay (SSP) rate in the UK?

Under the current regulations, the standard flat rate of Statutory Sick Pay (SSP) is £123.25 per week. However, under the 2026 reforms, if an employee's average weekly earnings are below £123.25, their SSP is calculated at exactly 80 percent of their average weekly earnings.

Are there still waiting days for Statutory Sick Pay in the UK?

No. The historic 2026 UK employment reforms completely abolished the three waiting days. Statutory Sick Pay is now a day-one entitlement, meaning eligible employees receive SSP starting from their very first day of sickness absence.

How do you calculate SSP for a part-time worker?

First, calculate the worker's Average Weekly Earnings (AWE). If their AWE is £123.25 or higher, they receive the flat rate of £123.25 per week. If their AWE is lower, their SSP is 80% of their AWE. To find the daily rate, divide this weekly rate by the number of qualifying days they normally work in a week, then multiply by the sick qualifying days.

What is the maximum duration you can receive Statutory Sick Pay?

The absolute maximum statutory duration for receiving Statutory Sick Pay (SSP) is 28 weeks for a single period of sickness (or linked periods of sickness). If your illness extends beyond 28 weeks, your employer must issue form SSP1 to allow you to transition to DWP benefits.

How does an employer verify a DoctorCert medical certificate for SSP?

Every DoctorCert certificate contains a unique verification code and a secure URL. Your employer's payroll or HR department can visit this URL, enter the code, and instantly verify that the certificate was legitimately issued and signed by a GMC-registered UK GP.

Need a medical certificate?

If you need signed medical evidence for work, study, or administrative purposes, you can request a private medical certificate online from a GMC-registered doctor, usually issued within 2 hours during business hours. See the one-off pricing and how private medical certificates work before you start.