Statutory Sick Pay: A Guide for Small Businesses

When an employee is off sick, you have a legal duty to pay statutory sick pay (SSP) if they qualify. For a small business, understanding the rules — who qualifies, how much, and for how long — helps you budget and stay compliant. This guide covers everything you need to know.

Who qualifies for SSP?

An employee qualifies for SSP if they:

• Have been off sick for 4 or more days in a row (including non-working days)
• Earn at least £123 per week on average (before tax)
• Have started work for you and done some work for you
• Are not receiving statutory maternity, paternity, or adoption pay

Agency workers, zero-hours contractors, and part-time staff can all qualify if they meet these conditions.

How is SSP calculated?

The first 3 qualifying days of sickness are "waiting days" — SSP is not paid for these. From the 4th qualifying day onwards, you pay £116.75 per week. If the employee is off for less than a week, SSP is calculated daily based on the number of qualifying days.

For example, if an employee is off sick for 7 working days (and works 5 days/week), the first 3 qualifying days are unpaid, and the remaining 4 days are paid at the daily SSP rate of £16.68per day — roughly £66.71 for that period.

Your obligations as an employer

• Pay SSP on the normal payday, with the same deductions as regular pay
• Keep records of sickness absence and SSP payments for at least 3 years
• Accept self-certification for the first 7 days of sickness
• Require a fit note (from a GP) for sickness lasting more than 7 days
• Do not require a doctor's note for the first 7 calendar days

Sick pay and small businesses

Some small businesses choose to offer enhanced sick pay — paying full or half salary for a set number of sick days per year. This reduces presenteeism (employees coming in sick) and improves retention. If you do offer enhanced sick pay, SSP counts towards it — you don't pay it on top.

The most common mistake we see in small businesses is not tracking sick days properly. Without accurate records, you can't calculate waiting days, you can't demonstrate compliance, and you risk disputes. HR software like Breathe HR (included in our memberships) makes this straightforward.

What about employees who don't qualify for SSP?

Employees who earn below the lower earnings limit (£123/week) don't qualify for SSP. They may be able to claim Universal Credit or New Style Employment and Support Allowance. You should give them form SSP1 so they can make a claim.