Our simple-to-use SSP calculator can integrate seamlessly into your process for handling employee illness, freeing up the time it would take to manually calculate your employee’s statutory sick pay entitlement and eliminating the risk of human error.
How to calculate Statutory Sick Pay (SSP)?
Below are 3 scenarios of how we calculate Statutory Sick Pay
Here are three scenarios to help you understand how statutory sick pay calculation is managed. You can assume in each case that the employee qualifies for SSP and that the SSP calculation is carried out correctly.
SSP Calculations Scenario 1
In scenario one, an employee normally works Monday to Friday each week. They fall ill on Monday and are absent for the entire working week, returning to work the following Monday.
- The weekly SSP rate is £123.25.
To calculate the daily SSP rate:
- £123.25 ÷ 5 = £24.65 per day
Because SSP now applies from the first qualifying day of sickness absence, all five working days qualify for SSP.
The employee is absent from Monday to Friday.
Total SSP payable:
- 5 × £24.65 = £123.25
SSP Calculations Scenario 2
In scenario two, the same employee falls ill on Saturday and remains unwell throughout the following working week, returning to work the next Monday.
Although the sickness started on a Saturday, the employee does not normally work weekends. Their qualifying work days are therefore: Monday-Friday.
The weekly SSP rate remains £123.25.
Daily SSP rate:
- £123.25 ÷ 5 = £24.65 per day
As SSP is now payable from the first qualifying day of sickness absence, all five working days qualify.
Total SSP payable:
- 5 × £24.65 = £123.25
SSP Calculations Scenario 3
In scenario three, the same employee takes another period of sickness absence two weeks after their previous absence. This time, they are absent from Wednesday until the following Monday, returning to work on Tuesday.
The employee’s qualifying work days during this absence are Wednesday, Thursday, Friday and Monday.
The weekly SSP rate is £123.25.
Daily SSP rate:
- £123.25 ÷ 5 = £24.65 per day
Because SSP is payable from the first qualifying day of absence, all four qualifying work days are included in the calculation.
Total SSP payable:
- 4 × £24.65 = £98.60
What is Statutory Sick Pay (SSP)?
Statutory sick pay is the smallest amount the law requires employers to pay workers who are off sick, and as of 6 April 2026, the flat SSP rate is £123.25 per week, or 80% of normal weekly earnings if lower. You, as an employer calculating SSP in a compliant manner, is not allowed to pay any less than this rate to eligible employees. Although, you can pay more on top if your company has its own sick pay scheme based upon SSP calculations that go beyond the legislative minimums.
Most employees are entitled to SSP from the first qualifying day of sickness absence, provided they meet the eligibility requirements. It only applies after a qualifying period of absence, and to be eligible employees must earn above a certain amount. It’s also not something that employers are expected to continue paying indefinitely. The Social Security Contributions and Benefits Act 1992 and the Statutory Sick Pay (General) Regulations 1982 outline who is entitled to it, along with other stipulations.
How do I determine if an employee is eligible for SSP?
Before calculating an employee’s statutory sick pay, you should confirm that they are eligible for it. SSP calculations and criteria of eligibility are subject to several conditions related to the sick employee’s earnings and the length of time they are ill, among other things. All of the following conditions must be met for an employee to be entitled to SSP.
Under current SSP rules, eligible employees can receive SSP from the first qualifying day they are absent due to illness. The previous lower earnings threshold and unpaid waiting days no longer apply.
What are the step-by-step instructions for calculating SSP entitlement?
After confirming that your employee is entitled to it, you need to find the following information for the calculation of SSP:
- The day when the sickness started, which does not have to be a working day.
- The days the employee would ordinarily work under their contract.
- The rate at which the calculation of SSP has been defined by the state for that current tax year, which is an aspect already built into our SSP sick pay calculator.
Calculating SSP entitlement can then be done manually by following the steps below:
- Divide the weekly SSP rate by the number of days your employee must normally work each week, which gives you the daily rate.
- Count all qualifying work days the employee was absent due to sickness.
- Multiply the number of remaining work days by the daily rate.
Or, take advantage of the statutory sick pay calculator provided by Avensure and work out SSP due to an employee without the juggling act of long division.
What are the differences between an SSP calculator and calculating company sick pay?
When you calculate statutory sick pay, for example by using this SSP pay calculator, you are only calculating the minimum amount that you are legally required to pay eligible employees. You can, however, pay more than this. Many employers do, because SSP is a statutory minimum payment set by the government and may be significantly lower than an employee’s normal wages, meaning the SSP rate is significantly lower than many people’s salaries.
Company sick pay can, and often is, more than statutory sick pay, and must at least be equal to it. Some employers calculate statutory sick pay first, then top this up so that the employee continues to earn their usual rate while they are ill.
What are the most common mistakes employers make when calculating SSP?
It’s easy for errors to slip in when you calculate statutory sick pay. Here are some of the most common ones to watch out for:
- Not verifying that all of the eligibility criteria have been met.
- Not checking whether seemingly eligible employees are excluded, which they are if they are receiving statutory maternity pay or have already received SSP for 28 weeks.
- Using outdated SSP rates or applying previous waiting-day rules that no longer apply.
- Ignoring linked sickness periods, which occur when a worker is absent due to illness for two periods within eight weeks of each other.
Linked periods of sickness may still affect how SSP entitlement is tracked, even though waiting days no longer apply. Every day that would have been worked should be included when you calculate statutory sick pay for that time.
Calculate Statutory Sick Pay (SSP) as an employer
What legal obligations are involved in statutory sick pay calculation for employers?
As an employer, your chief obligation is to pay at least the statutory rate to sick employees who are eligible for SSP and not subject to any exclusions. This applies from the first qualifying day they are absent due to sickness. You cannot include terms in contracts that make workers agree to any less than this.
You also have obligations in terms of how you pay SSP. It should be paid through your regular payroll system with deductions for tax and National Insurance, and you need to maintain accurate records of the data and information used in any calculation of SSP.
If you have sick employees who are not eligible for SSP, you are obligated to write to them, letting them know why they are not.
How should I integrate SSP with my company sick leave policy?
- Let your employees know about SSP: Even if you have your own sick pay scheme that offers them more, ensure that your sick leave policy lets employee’s know what their basic legal entitlement is.
- Explain who’s entitled to it: Make this clear to avoid confusion later. You’ll need to write to workers who aren’t entitled to it in any case, but it’s best if this isn’t a surprise.
- Clarify how to report sickness: Make sure employees know how to notify you of their illness and when they need to let you know by. If you don’t have your own policy, let them know employees should follow your organisation’s sickness reporting procedures and provide notice of absence as soon as reasonably possible.
What are the record-keeping requirements for SSP?
You need to keep records related to statutory sickness payments for three years after the end of the tax year in which they were paid. After calculating SSP, HMRC has an official form, called the SSP2, which you can use to record the dates and amounts of payments.
There’s also space on the form for the employee’s name, their National Insurance number and other important details, like the start and end dates of their sick leave. Even if you choose to use your own documents, you need to include these, along with the employee’s statutory sick pay waiting days and qualifying days.
What’s the best way of managing SSP requests from employees?
Here are some tips on how best to go about calculating SSP and handling requests:
- Assess the request promptly, checking whether it meets your policy on notifications and recording the notification and starting dates of the illness.
- Check the employee’s eligibility, writing to them if they are not entitled to SSP and keeping them updated throughout the process if they are.
- Calculate SSP based on the employee’s qualifying absence days and current statutory rates. Use a statutory sick pay calculator like ours to ensure they get the right amount.
- Pay them on your normal payroll, with deductions for NI and tax if necessary.
How do I appeal an SSP decision?
If an employee disputes your SSP calculations or any related decisions you have made, even after you’ve provided them with a written explanation, they can ask HMRC to calculate statutory sick pay for them. The outcome will be sent to both you and the employee. If you need to make additional payments, you will be given a date by which to do so.
However, you do have the right to appeal. The first appeal will be handled by HMRC again, who will hold discussions with you and your employee to try and reach an agreement. If this cannot be achieved, your case will be reviewed by a new HMRC officer. If you appeal this, the case will be heard by an independent tribunal, who will make a final decision.
Statutory Sick Pay updates and impact
What are the recent changes and updates to SSP?
A number of reforms to SSP came into effect in April 2026 under the Employment Rights Act reforms.
- The SSP weekly rate increased to £123.25.
- SSP is now payable from the first qualifying day of sickness absence.
- The previous Lower Earnings Limit for SSP eligibility has been removed.
- Employees earning below the previous threshold may now qualify for SSP based on updated eligibility rules.
- Employers should ensure payroll systems and sickness policies reflect the latest statutory requirements.
How does SSP impact employee benefits?
It is your duty as an employer to let your workers know how SSP interacts with other benefits, such as a company sick leave policy. For example, you might top up payments so that employees get their full, regular income for a certain number of weeks, before reverting to SSP thereafter.
What role does SSP play in workplace wellbeing?
By guaranteeing a minimum income when employees are too sick to work, SSP plays a significant role in workplace wellbeing. It does this by:
- Reducing the stress of workers who are off sick, helping them recover
- Encouraging the sick to stay home and get well, protecting other employees
- Reassuring employees by treating sick leave in a consistent and fair manner
The importance of adherence to regulations as you calculate your employee’s statutory sick pay and the potential implications of failing to act in a legally compliant manner are significant. This is precisely why we developed and advise the use of an SSP eligibility calculator such as the free resource provided by Avensure.
Need expert help with SSP or employment law compliance? Contact Avensure today
Avensure‘s HR advice and guidance is trusted by more than 7,000 UK employers. Our knowledgeable and friendly advisers are available 24/7 to clearly explain the steps your business needs to take to stay compliant, whether you are trying to calculate statutory sick pay or you want a second opinion when dealing with complex HR issues.
