Statutory Sick Pay — Employer Guide 2026/27

Written by EmployerCalculator Editorial · Reviewed against official UK sources · Last updated: June 2026

SSP is £116.75 per week in 2026/27, payable from the fourth day of illness for up to 28 weeks. This guide covers when it is due, who qualifies, how long it runs and how to manage long-term absence.

When SSP is due

Statutory Sick Pay is triggered when an employee is incapable of work due to illness for four or more consecutive days, including days the employee does not normally work (so a Friday to Monday absence counts as four days). The first three qualifying days are called waiting days — SSP is not payable for these. Payment begins from the fourth qualifying day of absence.

The concept of a Period of Incapacity for Work (PIW) matters where an employee has recurring absences. If an employee returns to work and is then absent again within eight weeks, the two absences are linked into a single PIW. Linked absences mean there are no fresh waiting days on the second absence — SSP is payable from day one of the return absence. This rule prevents employees with chronic conditions from repeatedly serving three waiting days before SSP begins.

Qualifying days are normally the employee's contracted working days, but employers and employees can agree different qualifying day patterns in writing. The most common approach is for qualifying days to mirror contractual working days — so a part-time worker who works Monday, Wednesday and Friday would have three qualifying days per week rather than five. This affects both the waiting day calculation and the weekly SSP entitlement.

The rate and duration

The SSP rate for 2026/27 is £116.75 per week. This applies regardless of the employee's actual salary — SSP is a flat rate, not a percentage of earnings. An employee on £50,000 per year receives the same £116.75 per week in SSP as an employee on £22,000. SSP is paid for up to 28 weeks in a single PIW. Once the 28-week limit is reached, SSP stops and the employee may apply for Employment and Support Allowance.

For the first seven days of absence, employees can self-certify — they do not need to provide a medical certificate (fit note). From day eight, employers can request a fit note from the employee's GP or other registered clinician. It is good practice to request a fit note for any absence that extends beyond seven days, both to understand the medical position and to start planning for absence management. Some employers also use occupational health referrals for absences beyond two or three weeks.

SSP is paid through payroll in the same way as regular salary. It is subject to income tax and employee NI deductions at the employee's normal rates. Employers are no longer able to reclaim SSP from HMRC — the SSP rebate scheme was abolished in 2014 and the temporary Coronavirus SSP reclaim scheme ended in 2022. The full cost of SSP sits with the employer.

Who does not qualify

The lower earnings limit (LEL) for SSP is £123 per week in 2026/27. Employees earning below the LEL do not qualify for SSP. For part-time workers, this is a meaningful threshold: a worker on 12 hours per week at National Living Wage earns approximately £152 per week, comfortably above the LEL, but a worker on fewer hours or a lower rate may fall below it.

Casual workers — those without a regular pattern of work or a contract of employment — may not qualify for SSP if they do not meet the continuity of employment test. Zero-hours workers with irregular work patterns can fall into a grey area. The Employment Rights Act 2025 reforms, which give regular zero-hours workers a right to a guaranteed hours contract, may change how some casual workers are categorised for SSP purposes going forward.

Employees who have already received 28 weeks of SSP and not had a linking break of more than eight weeks do not qualify for further SSP in the same PIW. Employees on certain immigration statuses or who are in legal detention are also excluded. If an employee disputes their SSP entitlement, they can ask HMRC to make a determination — the employer is bound by HMRC's decision.

Handling long-term absence

Once an employee has been absent for four weeks or more, it is reasonable to arrange an occupational health assessment. Occupational health can advise on the nature of the condition, likely return timeline, and any reasonable adjustments that might facilitate a return to work. This information is valuable both for managing the individual case and for protecting the employer against disability discrimination claims if the absence involves a condition that may be a disability under the Equality Act 2010.

Fit notes from week eight onwards give the GP's assessment of whether the employee is fit for work, unfit for work, or may be fit for work with adjustments. From 2022, nurses, physiotherapists, occupational therapists, and pharmacists can also issue fit notes. Employers are not obliged to accept the adjustments suggested in a fit note but should consider them seriously before declining, as failure to make reasonable adjustments can be a Equality Act exposure.

HMRC's SSP rebate for long-term absence no longer exists. For employers facing extended absence costs, the options are: occupational health-supported rehabilitation, an ill-health retirement process where appropriate, or a capability or medical dismissal following a fair process. Dismissing an employee who is long-term sick without a fair process or without considering all alternatives carries unfair dismissal risk. Take employment law advice before moving to dismissal on health grounds.

Frequently asked questions

How much does it cost to employ someone in the UK?

The true cost to employ someone in the UK is typically 15–20% above gross salary. At £30,000: employer NI £3,750 + pension £713 = approximately £34,463 per year. At £50,000: employer NI £6,750 + pension £1,313 = approximately £58,063 per year. Adding workplace overheads of £2,000–£5,000 can bring the total to 20–25% above the headline salary.

What is the employer NI rate for 2026/27?

For 2026/27, employer Class 1 National Insurance is charged at 15% on employee earnings above the secondary threshold of £5,000 per year (£96 per week, £416 per month). This rate increased from 13.8% in April 2025, when the threshold was simultaneously cut from £9,100 to £5,000. Both changes apply from 6 April 2025.

How much employer NI do I pay on a £35,000 salary?

At £35,000 salary, employer NI for 2026/27 is £4,500 per year — 15% on £30,000 of earnings above the £5,000 threshold. That is £375 per month. In 2024/25, the same salary produced £3,585 in employer NI. The April 2025 changes therefore add £915 per year on this salary alone.

What is Employment Allowance and who can claim it?

Employment Allowance lets eligible employers reduce their annual employer NI bill by up to £10,500 in 2026/27, increased from £5,000 in 2024/25. The previous £100,000 NI bill eligibility cap has been removed, so more businesses qualify. Companies where the only paid employee is also a director cannot claim. Apply through payroll software via the Employer Payment Summary indicator.

What is the total employer cost above salary?

Beyond salary, employer cost includes: employer NI (15% on earnings above £5,000), employer pension (minimum 3% of qualifying earnings between £6,240 and £50,270), and overheads such as equipment, software and workspace. For most UK salaries this adds 12–20% above headline pay. Use the inputs above to set your exact pension rate and overhead figure.

What changed for employers in April 2025?

Three changes took effect from 6 April 2025: the employer NI rate rose from 13.8% to 15%, the secondary threshold was cut from £9,100 to £5,000, and Employment Allowance increased from £5,000 to £10,500 with the eligibility cap removed. For a £30,000 salary, annual employer NI increased from approximately £2,884 to £3,750 — a rise of £866 per year.

How is employer NI different from employee NI?

Employer NI is a cost paid by the employer on top of gross salary — it does not reduce take-home pay. Employee NI is deducted from the employee's wages instead. For 2026/27, employees pay 8% on earnings between £12,570 and £50,270, then 2% above that. Employers pay 15% on all earnings above £5,000 with no upper cap. This calculator covers the employer side; for employee take-home pay see AfterTaxSalary.co.uk.

What are employer costs in the UK?

UK employer costs in 2026/27 are: gross salary, employer NI at 15% on earnings above £5,000, employer pension at minimum 3% of qualifying earnings (£6,240–£50,270), and any operational overheads such as equipment or software. For a £35,000 salary, statutory employer costs (NI + pension) add approximately £5,363/year before overheads.

How much do I cost my employer in the UK?

If you earn £35,000, you cost your employer roughly £40,363/year — your salary plus £4,500 employer NI and £863 minimum pension. At £50,000, the total is approximately £58,063. Your employer pays these on top of your salary; they are not deducted from your pay. Use this calculator to see the exact figure for your salary.

Is this a PAYE cost calculator for employers?

Yes. PAYE employer costs include employer NI — calculated at 15% above £5,000 for 2026/27 — plus the employer's auto-enrolment pension contribution. The full calculator models both alongside any overhead assumptions to give a total PAYE-basis employer spend per employee.

What is a cost to company (CTC) salary in the UK?

Cost to company (CTC) in the UK refers to the total annual cost of an employee to their employer — salary, employer NI, pension, and overheads combined. A £35,000 CTC salary typically means a gross salary of roughly £30,000–£32,000 once the employer's NI and pension obligations are included in the total. Use this calculator to work backwards from a CTC budget to a gross salary.

Tools

Tools worth considering

UK payroll and HR tools. Editorial summary only — not endorsements.

Xero Payroll

Cloud payroll bundled with Xero accounting. Handles RTI submissions, auto-enrolment and payslip generation. Commonly used by UK small businesses already on Xero for bookkeeping.

See Xero Payroll →

QuickBooks Payroll

Payroll add-on for QuickBooks. Used by UK small employers for PAYE, NI, pension and HMRC RTI. Integrates with QuickBooks accounting.

See QuickBooks Payroll →

Sage Payroll

Long-established UK payroll software with HMRC recognition. Works standalone (without Sage accounting) and is widely used in small businesses and accountancy practices.

See Sage Payroll →

Employment Hero

HR and payroll platform used by growing UK teams. Combines contracts, onboarding, leave management and payroll in one system. HMRC RTI integrated.

See Employment Hero →

Once you know the cost — what next?

Running payroll correctly after you have calculated employer cost is the next practical step. The tools below handle HMRC RTI submissions, auto-enrolment pension and payslip generation automatically.

Compare UK payroll software → Open employer cost calculator Check Employment Allowance eligibility

EmployerCalculator Editorial. Content reviewed against HMRC guidance. Estimates only — not financial or legal advice. See our methodology and sources.