Understanding Statutory Sick Pay in the UK (2025)
In today’s employment landscape, where health and wellbeing are central to workforce retention, understanding statutory leave entitlements is a must. One of the most fundamental employer obligations in the UK is Statutory Sick Pay (SSP)—a government-mandated benefit ensuring financial support for employees during periods of illness.
SSP is a legal requirement, but one that comes with nuanced rules around eligibility, calculations, payment periods, and documentation. For UK employers, mastering SSP compliance isn't just about avoiding penalties—it's also about building a supportive, fair, and resilient workplace.
What Is Statutory Sick Pay (SSP)?
Statutory Sick Pay (SSP) is the minimum amount UK employers are legally required to pay eligible employees who are absent from work due to illness.
As of the 2025 update:
- SSP is paid at a weekly rate of £109.40
- It can be paid for up to 28 weeks
- It only applies to qualifying days—days an employee would normally work
However, SSP is not payable during the first three consecutive “waiting” days of illness unless the employee has had a linked period of sickness in the past eight weeks.
Some employers choose to offer enhanced sick pay schemes, but SSP remains the legal floor all employers must meet.
Why Statutory Sick Pay Matters
For employers, SSP plays a dual role: it fulfils a legal obligation and strengthens employee trust.
Correctly administering SSP ensures:
- Compliance with HMRC rules
- Accurate payroll and benefits reporting
- Reduced legal and reputational risk
- Employee wellbeing support, especially during long-term or recurring illnesses
Mistakes or delays in SSP payment can result in fines, claims, or intervention by HMRC’s Statutory Payments Dispute Team.
Key Factors That Affect SSP Compliance
- Employee Eligibility
Employees qualify for SSP if they:
- Earn at least £123 per week (Lower Earnings Limit)
- Are ill for 4 or more consecutive days
- Are classified as employees (not self-employed)
- Provide a fit note from a GP for absences over 7 days
Part-time staff, agency workers, and directors may qualify. Self-employed individuals and employees on certain other benefits (like Statutory Maternity Pay) are not eligible.
- Payment Duration and Timing
- SSP is payable for up to 28 weeks per sickness period
- Must be paid on regular payroll cycles (weekly or monthly)
- Employers are not reimbursed by the government for SSP payments
- Payment ends when the employee returns to work or becomes ineligible
- SSP1 Form Requirements
If an employee:
- Doesn't qualify for SSP, or
- Exhausts their 28-week entitlement
Then the employer must issue an SSP1 form within seven days. This form allows the employee to apply for Universal Credit (UC) or Employment and Support Allowance (ESA).
- Recordkeeping and Audits
While not mandatory, employers are strongly advised to keep records of:
- Sickness absence dates
- SSP payment amounts and calculations
- Any SSP1 forms issued
These can be requested during HMRC audits or employee disputes.
Common Compliance Challenges for Employers
- Misclassifying employees or contractors
- Overlooking eligibility thresholds
- Failing to provide required documentation (e.g., SSP1 forms)
- Confusing statutory requirements with contractual sick pay schemes
- Not updating SSP policies in line with annual rate or earnings limit changes
These issues can lead to disputes, penalties, or backdated liabilities.
How TopSource Worldwide Helps with SSP Compliance
At TopSource Worldwide, we help UK businesses navigate the complexities of employment legislation—including Statutory Sick Pay. Our services include:
- Automated SSP tracking and calculation within payroll
- Real-time absence and eligibility monitoring
- Fit note documentation support
- Preparation and filing of SSP1 forms
- Advice on integrating statutory and enhanced sick pay schemes
Whether you're managing a local team or running a global workforce through our Employer of Record (EOR) model, we ensure your business remains compliant and protected.
Final Word: Stay Compliant, Stay Caring
Statutory Sick Pay isn’t just a line item on a payslip—it’s a reflection of your company’s values and compliance culture.
By understanding SSP rules and embedding them into your HR and payroll practices, you create a supportive, transparent, and lawful work environment.
Let TopSource Worldwide be your compliance partner—so you can focus on growing your business while we take care of the rules.