Updated 13th August 2026.
Whether it’s strep, sniffles or the stomach bug, we all get sick. As a business owner, you have to juggle both the wellbeing of your team and your business. While you’re happy for an employee to take all the R&R and Lemsip they need to get back on their feet, you’re also wondering what their absence means for you financially.
This is where it helps to have a basic understanding of UK sick pay law. And with some important changes to Statutory Sick Pay introduced in April 2026, there are a few new rules for employers to be aware of.
So, do you have to pay your employees sick pay? In most cases, yes – if they are eligible for Statutory Sick Pay (SSP).
Here’s what you need to know.
UK sick pay law: how much Statutory Sick Pay do employers have to pay?
Statutory Sick Pay (SSP) is the minimum amount eligible employees are entitled to receive when they are too ill to work.
For the 2026/27 tax year, SSP is £123.25 per week or 80% of the employee’s average weekly earnings, whichever is lower. It can be paid for up to 28 weeks.
SSP is paid through your normal payroll in much the same way as wages, with tax and National Insurance deducted where applicable.
If managing payroll is starting to become another job in itself, our accountants for small businesses can help take care of payroll, pensions and the wider financial admin that comes with employing a team.
Who is eligible for Statutory Sick Pay?
The rules changed considerably on 6 April 2026.
Previously, an employee needed to earn at least a set amount each week to qualify for SSP. That minimum earnings threshold has now been removed, meaning eligible employees can qualify regardless of how much they earn.
Generally, an employee must:
- Have an employment contract
- Have already completed some work under that contract
- Be too ill to work for at least one full working day
- Tell you about their sickness within the required timeframe
There are some exceptions. For example, an employee may not qualify if they have already received the maximum 28 weeks of SSP or are receiving Statutory Maternity Pay.
For less straightforward situations, such as agency workers, directors or employees with several periods of sickness, it is worth checking the latest government guidance or using the GOV.UK SSP calculator.
Keeping up with changes to UK sick pay law is particularly important if you employ part-time, variable-hours or lower-paid members of staff, as the removal of the previous earnings threshold means more employees may now qualify for SSP.
When do you have to start paying Statutory Sick Pay?
This is another important change for 2026.
SSP is now payable from the first full working day that an eligible employee is off sick. The old three-day waiting period was removed on 6 April 2026.
If an employee starts work and then goes home sick, that day does not count as a full sick day for SSP purposes. Their entitlement would normally begin from the next full working day they are unable to work.
This means even short periods of sickness can now have an impact on payroll, making it even more important that your payroll system and sickness policies reflect the latest UK sick pay law.
If you use Xero, there are plenty of ways to make managing employee information and payroll easier. Have a look at our guide to making the most of Xero in 2026.
Do employees need a fit note for sick pay?
Employees do not normally need to provide a fit note if they are off sick for seven calendar days or fewer. They can self-certify their sickness during this period.
If they are off for more than seven days in a row, you can ask them for a fit note.
Fit notes can be issued by healthcare professionals including:
- Doctors
- Registered nurses
- Occupational therapists
- Pharmacists
- Physiotherapists
You should also have a clear process for employees to tell you when they are going to be off sick, ideally outlined within your employment contracts or sickness policy.
Can employers claim Statutory Sick Pay back?
No. Employers cannot currently reclaim ordinary Statutory Sick Pay from HMRC.
This is different from certain other statutory payments, such as Statutory Maternity Pay and Statutory Paternity Pay, where employers can recover a proportion of what they pay. SSP, however, must be covered by the employer
You are also responsible for making sure SSP is calculated correctly and recorded through your payroll.
Keeping your payroll accurate becomes increasingly important as your team grows. Our Xero setup guide for creative businesses covers some of the foundations you should have in place when setting up payroll and your accounts.
Can you offer your own company sick pay scheme?
Absolutely.
SSP is the statutory minimum, but you can choose to offer a more generous company sick pay scheme. This is sometimes called contractual or occupational sick pay.
If you decide to offer company sick pay, there are a few important things to remember:
- You cannot pay eligible employees less than their statutory entitlement.
- Get your policy in writing. Your company sick pay scheme should be included in the employee’s employment contract, clearly explaining how much they can receive and how long payments can continue. You can also set out further details in your company handbook
- Apply your policy consistently. Make sure your rules and processes are clear for everyone in the business.
A clear company sick pay policy helps employees understand what they can expect while also making life considerably easier for whoever has to process your payroll.
Supporting employees while they’re off sick
Of course, sick pay is only one part of supporting your team.
There is not much you can do to stop someone being laid up with norovirus for a week, but creating a workplace where employees feel comfortable discussing their physical and mental health can make managing absence easier for everyone.
For longer periods of sickness, employers should consider how they keep in touch with the employee and what support might help them return to work. This could include occupational health support, temporary changes to responsibilities or a phased return where appropriate.
We’ve previously written about some of the ways businesses can promote mental health and wellbeing in the workplace.
Understanding the UK sick pay law is an important part of employing people, but it is only one element of running a compliant and financially organised business.
If keeping on top of payroll, SSP and the rest of your financial admin is taking too much time away from actually running your business, get in touch with Raedan. We’re here to help you spend less time sweating the small stuff and more time doing what you do best.
