Statutory Sick Pay (SSP) trips up a lot of small UK trade employers. The rules are not complicated, but they are easy to get wrong, especially when you have casual workers, zero-hours staff and a mix of weekly and monthly paid employees.
Here is the guide every small employer should have to hand.
What Is SSP?
Statutory Sick Pay is a minimum amount employers must pay employees who are too ill to work. It is set by the government and updated each tax year.
For the 2025/26 tax year, the rate is 118.75 pounds per week, paid for up to 28 weeks.
You cannot pay less than SSP. You can pay more, through a company sick pay scheme, if you choose to.
Who Qualifies for SSP?
To qualify for SSP, an employee must:
- Be classed as an employee (not genuinely self-employed)
- Earn an average of at least the Lower Earnings Limit per week (123 pounds in 2025/26)
- Have been ill for at least four days in a row, including non-working days
- Tell you they are sick within your notification deadline
- Provide a fit note (formerly sick note) after seven calendar days of absence
What Counts as a Day of Sickness?
SSP is paid for qualifying days, which are normally the days the employee would have worked.
The first three qualifying days are called waiting days. SSP is not paid for waiting days, only from the fourth day of sickness onwards.
If the employee was paid SSP for sickness in the last eight weeks, the waiting days do not have to be served again.
How Long Is SSP Paid For?
Up to 28 weeks of paid sickness in any one period of incapacity for work (or linked periods).
After 28 weeks, SSP stops. If the employee is still unwell, they may be eligible for Universal Credit or Employment and Support Allowance. The employer should issue an SSP1 form to help with that claim.
How Much Is SSP?
For 2025/26, the weekly rate is 118.75 pounds.
It is paid through PAYE in the same way as wages, with tax and National Insurance deducted. It is not the same as full pay. Many UK workers will see a significant drop in income when on SSP, which is why a company sick pay scheme is worth considering.
What About Self-Employed Workers?
Genuinely self-employed people are not entitled to SSP. They can claim Employment and Support Allowance instead.
This is a common area of confusion in the trades. If you have someone working as a labourer five days a week, on your jobs, using your tools, under your direction, they may well be an employee or limb (b) worker for tax and employment law purposes, even if you both call them self-employed.
If in doubt, check their employment status using HMRC's Check Employment Status for Tax (CEST) tool.
Fit Notes
After seven calendar days of absence (including weekends), the employee must provide a fit note from a healthcare professional.
A fit note can either say the employee is:
- Not fit for work, or
- May be fit for work with adjustments
If the fit note suggests adjustments, you must consider them. Examples might include lighter duties, shorter hours or a phased return. You do not have to agree, but you should respond reasonably and document your decision.
Record Keeping
You no longer have to keep specific SSP records by law, but HMRC can ask you to demonstrate that SSP has been paid correctly.
In practice, keep:
- Dates of absence
- Days SSP was paid
- Fit notes received
- Any decisions about adjustments or refusal of SSP
A simple absence log per employee is enough.
Common Mistakes
- Treating waiting days as paid days
- Not paying SSP at all because the employee is on a zero-hours contract (some will still qualify)
- Forgetting that SSP is the minimum, not the maximum
- Refusing SSP without a written reason
- Failing to issue an SSP1 form when SSP ends
- Treating a labourer as self-employed when they are actually a worker or employee
A Note on Company Sick Pay
Many UK trade businesses offer a small enhancement, such as one week of full pay before SSP kicks in, or full pay for the first month of certified illness.
This is entirely optional, but it is worth thinking about because:
- It improves staff retention
- It reduces the temptation to come in unwell and cause an incident on site
- It makes the business more attractive to skilled workers
If you do offer enhanced sick pay, set it out clearly in the employment contract or handbook, including when it applies and how it interacts with SSP.
Final Thoughts
SSP is straightforward in principle. Where small employers go wrong is usually around employment status, waiting days and record keeping.
Get your contracts right. Keep simple absence records. Pay SSP correctly through PAYE. Consider whether a modest company sick pay scheme would benefit your business.
Do that, and you will be running things properly and avoiding both HMRC issues and tribunal claims.
