A comprehensive guide explaining what Statutory Sick Pay (SSP) is, who qualifies, how much it pays in 2025, and how employers can stay compliant. Includes practical insights for managing SSP efficiently using Blaze HR payroll software.
What is Statutory Sick Pay (SSP)?
Statutory Sick Pay (SSP) is a government-mandated payment that UK employers must provide to eligible employees who are unable to work due to illness. It ensures workers receive a minimum level of income when they’re off sick.
Learn more on GOV.UK
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Definition and purpose of SSP
SSP acts as a safety net, offering financial support during periods of sickness when employees can’t perform their usual duties.
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Why SSP is important for employees and employers
It protects employee wellbeing while ensuring employers meet legal pay obligations set by the UK government.
What’s the difference between Statutory Sick Pay and occupational sick pay?
While SSP sets the legal minimum, some organisations choose to offer occupational sick pay schemes, which provide enhanced benefits.
See GOV.UK: Sick pay and leave
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Overview of occupational sick pay
Occupational sick pay is employer-funded and may exceed statutory requirements, offering full or partial salary for a defined period.
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Employer responsibilities and best practices
Employers should clearly outline occupational sick pay details in employment contracts and staff handbooks.
Does an employer legally have to pay SSP?
Yes, all UK employers are legally required to pay SSP to eligible employees who meet the qualifying criteria.
See GOV.UK: Employer guide to Statutory Sick Pay
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Legal obligations under UK employment law
Employers must calculate and pay SSP correctly, following HMRC guidance.
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Consequences of non-compliance
Failure to comply can lead to HMRC penalties and damage to employer reputation.
Who qualifies for Statutory Sick Pay?
Employees qualify for SSP if they are off work sick for four or more consecutive days, earn an average of at least £125 per week, and have an employment contract.
Check eligibility on GOV.UK
- Eligibility criteria
To qualify, employees must meet all legal requirements including earnings threshold and sickness duration. - Rules for part-time and zero-hours workers
Workers on flexible hours may still qualify if they meet the minimum average earnings rule. - Reference to GOV.UK resources
For detailed eligibility criteria, visit GOV.UK SSP eligibility.
Who isn’t eligible for Statutory Sick Pay?
Some workers, such as self-employed individuals, are not eligible for SSP.
See GOV.UK: SSP eligibility exceptions
- List of exemptions
Employees are excluded if they are self-employed, in custody, or have already received 28 weeks of SSP. - Alternative benefits (Employment and Support Allowance, etc.)
Those who don’t qualify may claim Employment and Support Allowance (ESA).
Apply for ESA on GOV.UK
How much is Statutory Sick Pay in 2025?
As of April 2025, SSP is set at £118.75 per week. Employers cannot pay less than this rate.
See current SSP rates on GOV.UK
- SSP weekly rate 2025 (£118.75)
This is the flat rate set by the UK government for qualifying employees. - Daily rate calculation example
At £118.75 per week, an employee working five days a week would receive approximately £23.75 per day.
How does Statutory Sick Pay work?
Employers determine eligibility, calculate SSP based on qualifying days, and pay it with normal wages.
See GOV.UK SSP overview
- Overview of the SSP payment process
Employers must verify sick days, calculate the correct pay amount, and issue payments through payroll. - Employer record-keeping requirements
Accurate sickness records and proof of payments must be kept for compliance and auditing.
How to check employee eligibility
Before paying SSP, employers must confirm all eligibility conditions are met.
- Employment contract requirements
The employee must have a valid employment contract and have performed some work. - Earnings and sickness duration checks
Employers must ensure average earnings exceed the minimum threshold and sickness lasts four or more days.
When to start paying Statutory Sick Pay
SSP starts on the fourth consecutive day of sickness absence.
- Waiting period (3 days)
The first three days are usually unpaid waiting days. - Proposed changes to start payments from day one
Upcoming reforms may remove the waiting period to provide faster support.
Government policy updates on GOV.UK
How to calculate Statutory Sick Pay
SSP is calculated by dividing the weekly rate by the employee’s usual working days and multiplying by sick days.
- Steps for calculation
- Identify qualifying days
- Deduct the first three waiting days
- Multiply the daily rate by days off sick
- Using GOV.UK SSP calculator
Use the Statutory Sick Pay calculator for accurate results.
How to pay staff who are off sick
SSP should be paid on regular paydays and included on payslips.
- Pay schedule and payslip transparency
Payments must follow standard payroll cycles and show clearly on payslips. - Record-keeping for audit and compliance
Maintain records for at least three years to meet HMRC requirements.
When to stop paying Statutory Sick Pay
SSP entitlement ends after 28 weeks, or when the employee returns to work.
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SSP duration limits (28 weeks)
The maximum period an employee can receive SSP is 28 weeks in any sickness period.
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When an employee returns to work or contract ends
Payments stop once the employee resumes duties or the contract terminates.
What to do if an employee exceeds their SSP entitlement
Once SSP entitlement ends, employers must issue an SSP1 form.
- Completing and issuing the SSP1 form
This form supports employees in applying for Employment and Support Allowance.
Download SSP1 form on GOV.UK - Supporting employees with ESA claims
Encourage employees to apply for ESA once SSP entitlement ends.
Upcoming changes to Statutory Sick Pay in 2025
The UK government plans to expand SSP access and remove existing barriers.
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Removal of the waiting period
SSP will be payable from the first day of sickness.
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Elimination of the lower earnings limit
Low-income employees will qualify for partial SSP payments.
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Impact on employers and payroll processes
Employers should update payroll systems to reflect new rules when implemented.
Effortlessly manage Statutory Sick Pay with Blaze HR
Blaze HR simplifies SSP management by automating calculations, tracking absences, and ensuring full compliance with UK regulations.
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Automate SSP calculations and tracking
Automatically calculate SSP based on eligibility and absence data.
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Ensure compliance with changing SSP legislation
Stay up to date with government changes through automated updates.
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Streamline payroll and HR processes with Blaze HR
Integrate SSP tracking seamlessly within your HR and payroll workflows.
Conclusion: Simplify Statutory Sick Pay Management with Blaze HR
Understanding Statutory Sick Pay is essential for compliance and employee wellbeing. With 2025 reforms on the horizon, employers must stay informed about rate changes, waiting periods, and eligibility rules.
By using Blaze HR’s automated payroll system, businesses can manage SSP effortlessly, ensuring accuracy, transparency, and peace of mind for both employers and employees.
