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Statutory sick pay (SSP) for 2026/27 is £123.25 a week or 80% of the employee’s average weekly earnings, whichever is lower. Since 6 April 2026, SSP is paid from the first day of sickness absence, with no waiting days and no minimum earnings level. Employers pay it for up to 28 weeks through payroll.
These are the biggest changes to statutory sick pay in decades, made by the Employment Rights Act 2025. They affect every employer, but especially small businesses with part-time and lower-paid staff, such as cafés, salons and shops. This guide explains the new rules, how to work out what to pay, the records to keep and the other statutory payment rates for 2026/27.
Statutory sick pay rules from April 2026
| Before 6 April 2026 | From 6 April 2026 | |
|---|---|---|
| Weekly rate | £118.75 flat rate (2025/26) | £123.25 or 80% of average weekly earnings, whichever is lower |
| Waiting days | First 3 qualifying days unpaid | None, paid from day one |
| Earnings condition | Had to earn at least the Lower Earnings Limit | No earnings condition |
| Maximum period | 28 weeks | 28 weeks |
The government estimates the change brings sick pay to millions more workers. For employers, it means more people qualify and short absences now cost money from the first day.
Who is entitled to statutory sick pay?
An employee qualifies if they:
- Have an employment contract and have done some work under it.
- Have been sick for at least one full working day. A day where they worked for a minute or more before going home does not count.
- Have told you they are sick within your time limit, or within 7 days if you have not set one.
- Provide a fit note if they are off for more than 7 days in a row, counting non-working days.
Agency workers may also qualify. An employee does not get SSP if they have already had 28 weeks, are getting Statutory Maternity Pay or Maternity Allowance, or fall into one of the other exclusions, such as being in custody or on strike on the first day of sickness.
How to calculate statutory sick pay
SSP is paid for “qualifying days”, which are the days an employee normally works. Follow these steps:
- Work out average weekly earnings, usually over the 8 weeks before the absence. New starters who have been paid for less than 8 weeks still qualify.
- Compare 80% of that figure with £123.25. Pay whichever is lower.
- Divide by the number of qualifying days in the week to get a daily rate.
- Multiply by the qualifying days missed.
The 80% rule only bites where average weekly earnings are below about £154 a week. Most full-time staff get the flat £123.25.
Worked examples for Bolton employers
Full-time: Hannah works five days a week at a bakery on Deansgate in Bolton and earns £500 a week. She is off sick on Monday, Tuesday and Wednesday.
| Step | Figure |
|---|---|
| 80% of £500 | £400, so the flat rate of £123.25 applies |
| Daily rate (£123.25 ÷ 5) | £24.65 |
| SSP for 3 days | £73.95 |
Under the old rules, those three days were waiting days and Hannah would have received no SSP.
Part-time: Chloe works three days a week in a Farnworth salon and earns £120 a week. She is off for two of her working days.
| Step | Figure |
|---|---|
| 80% of £120 | £96, lower than £123.25 |
| Daily rate (£96 ÷ 3) | £32 |
| SSP for 2 days | £64 |
Before April 2026, Chloe earned below the Lower Earnings Limit and would not have qualified at all.
SSP is treated as earnings, so it goes through payroll with income tax and National Insurance deducted in the usual way. You can check the employer cost with our National Insurance calculator.
Transitional rules for absences that crossed 6 April 2026
If an employee was already off sick before 6 April 2026, special rules applied:
- Staff already receiving SSP moved to the new rate from 6 April. Anyone who would have been worse off under the 80% rule kept the flat rate until they returned to work.
- Employees below the Lower Earnings Limit whose absence started on or after 22 September 2025 could qualify from 6 April 2026.
- No SSP is due for waiting days that fell before 6 April 2026.
Most of these cases have now ended, but check any long-term absence that started before April.
Record keeping and what employers cannot reclaim
You can choose how to record sickness absence, but HMRC may ask to see your records if there is a dispute about SSP. Keep a note of the dates of each absence, the qualifying days missed, the notice given, any fit notes and the SSP paid. Payroll records are normally kept for at least three years after the end of the tax year they relate to.
If an employee’s SSP is ending or they do not qualify, give them form SSP1 within the time limits, usually within 7 days, so they can claim other benefits.
Unlike maternity and paternity pay, statutory sick pay is not on HMRC’s list of payments you can recover. Small businesses should budget for the full cost and decide whether to offer company sick pay on top. Our payroll services include SSP calculations, so the right amount is paid each period.
Statutory pay rates for 2026/27
| Payment | 2026/27 rate |
|---|---|
| Statutory Sick Pay | £123.25 a week or 80% of average weekly earnings, if lower |
| Statutory Maternity Pay | 90% of average weekly earnings for 6 weeks, then £194.32 or 90% if lower for 33 weeks |
| Statutory Adoption Pay | 90% for 6 weeks, then £194.32 or 90% if lower for 33 weeks |
| Statutory Paternity Pay | £194.32 or 90% of average weekly earnings, if lower |
| Statutory Shared Parental Pay | £194.32 or 90% of average weekly earnings, if lower |
Employers can usually recover 92% of maternity, paternity, adoption and shared parental pay from HMRC, or 109% if they qualify for Small Employers’ Relief by paying £45,000 or less in Class 1 National Insurance in the last complete tax year. Paternity leave also became a day-one right from April 2026.
Frequently asked questions
How much is statutory sick pay in 2026?
From 6 April 2026, statutory sick pay is £123.25 a week or 80% of average weekly earnings, whichever is lower. It is paid for up to 28 weeks.
Is SSP paid from the first day of sickness now?
Yes. Since 6 April 2026, there are no waiting days, so SSP is paid from the first qualifying day of absence. The employee must still be off sick for at least one full working day.
Do part-time workers get statutory sick pay?
Yes. The Lower Earnings Limit was removed in April 2026, so part-time and low-paid employees qualify. Those earning under about £154 a week get 80% of their average weekly earnings.
Can employers claim back statutory sick pay?
Statutory sick pay is not included in HMRC’s list of statutory payments that employers can recover. Maternity, paternity, adoption and shared parental pay can usually be recovered at 92% or 109%.
When does an employee need a fit note?
Only when they have been off sick for more than 7 days in a row, including non-working days. For shorter absences you cannot insist on one, and you cannot withhold SSP because a fit note arrives late.
Get your payroll right with Cangaf
The day-one rules mean more SSP calculations, more often. Cangaf’s ACCA-qualified team runs payroll for Bolton employers, from restaurants and cafés to hair and beauty salons, and works with cloud accounting and payroll software so sickness absence flows straight into each pay run. Request a fixed-fee quote for your payroll.
Official guidance: Statutory Sick Pay: employee guide, Statutory Sick Pay: employer guide, Sickness absences that start before and end on or after 6 April 2026 and Recover statutory payments.
