Statutory Sick Pay 2025 – Rates, Rules and Key Changes

Statutory Sick Pay in the United Kingdom stands at £118.75 per week for the 2025-26 tax year, marking a modest increase from previous rates as living costs continue to pressure household budgets. The payment, mandatory for eligible employees after a three-day waiting period, serves as a financial safety net for up to 28 weeks of illness-related absence.

While the April 2025 adjustment provides immediate relief, more substantial reforms loom on the horizon. The Employment Rights Act 2025 will recalculate eligibility and payment structures from April 2026, removing earnings thresholds and introducing a percentage-based calculation that could fundamentally alter how millions of workers access support during illness.

What is the Statutory Sick Pay Rate for 2025?

The 2025-26 rate represents an increase of approximately £2.40 weekly from the 2024-25 level of £116.35, reflecting annual uprating against inflation indices. GOV.UK confirms the £118.75 figure applies from 6 April 2025 to 5 April 2026.

• Daily rates vary by work pattern: Employees working five-day weeks receive £23.75 daily, while seven-day workers receive £16.97.
• 2026 calculation shift: From April 2026, payments will calculate as 80% of average weekly earnings or a flat £123.25 cap, whichever proves lower.
• Agency workers included: Zero-hours and agency staff qualify provided they meet the earnings threshold.
• Non-recoverable costs: Employers bear the full expense; the government provides no reimbursement mechanism.
• Taxable income: SSP counts as earnings for tax and National Insurance purposes.
• Linked absence continuity: Returns to work shorter than eight weeks link separate illnesses into single entitlement periods.

Who is Eligible for SSP in 2025?

Earnings Threshold and Employment Status

To qualify for Statutory Sick Pay between April 2025 and April 2026, workers must earn at least £123 per week on average, though some payroll guidance suggests this threshold rises to £125 from April 2025. This requirement applies to full-time, part-time, agency, and zero-hours contract workers equally. Employees must have started work with their employer before the first day of sickness and notify their employer within the timeframe specified in their contract or within seven days if no deadline exists.

The Three-Day Waiting Period

SSP payments do not begin immediately. The first three consecutive days of absence remain unpaid unless the employee received SSP within the previous eight weeks for an earlier linked period of sickness. Official guidance confirms this waiting period applies universally to new absence periods.

Linked Periods of Sickness

If an employee returns to work for fewer than eight weeks before falling ill again, the new absence links to the previous one. In such cases, payment resumes immediately without repeating the three-day wait, counting toward the same 28-week maximum entitlement.

What Changes are Coming to SSP in 2025?

April 2025 Rate Adjustment

The immediate change effective 6 April 2025 adjusts the weekly rate to £118.75. Payroll specialists note this uprating reflects the government’s annual review of benefit levels against inflation and living cost indices.

The 2026 Employment Rights Act Overhaul

More significant transformations arrive 6 April 2026 under the Employment Rights Act 2025. ACAS confirms the legislation removes the Lower Earnings Limit entirely, extending eligibility to approximately 1.3 million lower-paid workers currently excluded from the scheme. Simultaneously, the three-day waiting period disappears, ensuring payment from the first qualifying day of sickness.

The payment calculation method changes fundamentally. Rather than a flat rate, eligible employees will receive the lower of either 80% of their average weekly earnings (calculated from the eight weeks prior to illness using National Insurance-subject pay) or a capped amount of £123.25 weekly. Armstrong Watson illustrates that a worker earning £200 weekly would receive the £123.25 cap, while someone earning £135 weekly would receive £108 (80% of their earnings).

How Long Does SSP Last and How is it Paid?

The 28-Week Limit

Statutory Sick Pay continues for a maximum of 28 weeks across any related periods of absence. Payments cease automatically if the employee returns to work, leaves employment, or begins receiving maternity pay. After exhausting SSP entitlement, individuals may transition to DWP 780 Benefits Extra Payment or other support mechanisms depending on circumstances.

Calculation and Payment Mechanics

Employers calculate daily rates by dividing the weekly £118.75 by the number of qualifying days normally worked. For a five-day week, this yields £23.75 daily; for a seven-day week, £16.97. Employers pay SSP on the normal payday with tax and National Insurance deducted, displaying the amount separately on payslips.

Claiming Procedure

Employees notify their employer of illness according to contractual requirements or within seven days. Medical evidence typically becomes required only after the seventh day of absence, usually via a fit note from a GP or hospital. Employers may not demand medical proof for the first week.

SSP vs Employer Sick Pay: Key Differences

Statutory Sick Pay represents the absolute legal minimum employers must provide. Many organisations offer occupational or contractual sick pay schemes that exceed these baseline requirements, often providing full salary continuation for periods ranging from one month to six months before reducing to half pay or statutory levels.

Unlike SSP, which employers cannot reclaim from the government, enhanced occupational schemes represent a direct cost to the business with no reimbursement. Employees should consult their employment contracts or staff handbooks to determine whether their workplace offers enhanced sick pay, as these terms vary significantly between sectors and employers.

When SSP proves insufficient to cover essential living costs, workers should immediately check their eligibility for means-tested benefits or negotiate payment plans with creditors. The Take Home Pay Calculator UK can help determine how SSP affects overall household income when combined with other benefits or part-time earnings.

Timeline of SSP Reforms

1. 6 April 2024: Previous rate of £116.35 established for the 2024-25 tax year.
2. 6 April 2025: Current rate of £118.75 takes effect, marking the final year of the flat-rate system with earnings thresholds.
3. 6 April 2026: Employment Rights Act 2025 provisions activate, removing the Lower Earnings Limit, eliminating waiting days, and implementing the 80% of earnings calculation method with £123.25 cap.

What We Know and What Remains Unclear

Context and Background

The Statutory Sick Pay scheme represents the baseline legal requirement for income protection during illness, established to prevent destitution while maintaining incentives for occupational health provision. The 2025-26 rate increase arrives amid sustained inflation pressure on essential goods and services, though critics note the amount remains significantly below the National Living Wage for a standard working week.

The forthcoming 2026 reforms reflect broader legislative efforts to extend employment protections to gig economy and part-time workers previously excluded by earnings thresholds. By shifting to a percentage-based calculation, the government aims to provide proportionate support while capping liabilities for employers. However, this change may disadvantage higher earners who currently receive the flat rate regardless of salary level.

Official Guidance and Expert Analysis

Statutory Sick Pay is £118.75 per week. It is paid by your employer for up to 28 weeks.

— GOV.UK Official Guidance

From 6 April 2026, the Lower Earnings Limit for SSP will be removed. This means more employees will be eligible for SSP.

— ACAS

For those earning between £125 and £154.05 per week who are already in receipt of SSP on 6 April 2026, they will continue to receive the flat rate of £123.25 for the remainder of their sickness absence.

— Armstrong Watson Payroll Specialists

Summary

Statutory Sick Pay provides £118.75 weekly for eligible employees from April 2025, maintaining the three-day waiting period and 28-week maximum established under previous regulations. While the immediate changes offer slight financial improvement, the April 2026 implementation of the Employment Rights Act 2025 will fundamentally alter eligibility criteria and calculation methods. Workers and employers should review their Take Home Pay Calculator UK projections to understand how the shift from flat-rate to percentage-based payments will affect individual circumstances.

Frequently Asked Questions