Sick Pay Calculation Uk

Estimate statutory sick pay entitlement, waiting days impact, and 28-week cap in minutes.

This calculator provides an estimate for planning and education. Always confirm exact entitlement using GOV.UK guidance and your payroll records.

Includes SSP waiting-day logic and 28-week entitlement cap.

Expert Guide to Sick Pay Calculation UK

Understanding sick pay calculation in the UK is essential for employees, payroll teams, HR professionals, and small business owners. Sick pay errors can create financial stress for workers and compliance risks for employers. This guide explains the practical mechanics of Statutory Sick Pay (SSP), how to estimate entitlement correctly, and where to validate your figures against official guidance. While this page gives you a detailed framework, payroll decisions should always be cross-checked with current government rules because rates and thresholds are updated periodically.

What is Statutory Sick Pay and why does it matter?

Statutory Sick Pay is the legal minimum amount eligible employees can receive when they are too ill to work. Employers administer SSP through payroll. For many workers, SSP is a key short-term safety net, especially where enhanced contractual sick pay is not available. For employers, getting SSP right protects against disputes and demonstrates fair treatment during illness absence.

SSP entitlement depends on several factors, not just “being off sick.” Eligibility checks include average earnings, employee status, sickness duration, and qualifying work patterns. The amount paid depends on a weekly SSP rate, then pro-rated for the employee’s qualifying days. The system also includes waiting days and a maximum entitlement period of 28 weeks.

Core SSP eligibility checks

Before calculating money, confirm eligibility. In practice, payroll teams usually run through a checklist:

• The worker is classed as an employee for SSP purposes.
• They have been off sick for at least 4 consecutive days (including non-working days).
• Their average weekly earnings are at or above the Lower Earnings Limit for National Insurance.
• They have not already exhausted the 28-week SSP maximum entitlement in the relevant period.

If average weekly earnings are below the Lower Earnings Limit, SSP may not be payable, but the employee may still be able to claim alternative benefits subject to DWP rules. This is one reason accurate earnings records and communication are vital.

How SSP is calculated step by step

1. Set the current SSP weekly rate. This is announced by government and usually changes each tax year.
2. Identify qualifying days. These are the days an employee normally works and can be paid SSP for.
3. Calculate a daily SSP rate. Divide weekly SSP by qualifying days per week.
4. Apply waiting days. Usually the first 3 qualifying days in a Period of Incapacity for Work are unpaid unless linked rules remove them.
5. Check the 28-week cap. If prior SSP has been used, reduce remaining entitlement.
6. Multiply payable qualifying days by daily rate. This gives estimated SSP due for that absence period.

In plain terms, most errors happen at steps 2, 4, and 5: incorrect qualifying days, waiting-day misunderstandings, and missing prior entitlement already used.

Key rates and thresholds: useful historical comparison

The table below shows how SSP and the Lower Earnings Limit have changed in recent tax years. These figures illustrate why payroll systems and calculator defaults should be reviewed annually.

Tax year	SSP weekly rate (£)	Lower Earnings Limit (£/week)	Practical impact
2021/22	96.35	120	Lower SSP baseline and lower earnings gateway.
2022/23	99.35	123	Moderate uplift in statutory support.
2023/24	109.40	123	Large SSP increase relative to prior year.
2024/25	116.75	123	Further increase, improving statutory minimum income while off sick.

Always verify current rates on GOV.UK before final payroll processing.

Waiting days and linked periods explained clearly

Waiting days are one of the most misunderstood parts of sick pay calculation in the UK. Generally, SSP is not paid for the first 3 qualifying sick days in a new qualifying period. If a later sickness episode links to an earlier one under statutory linking rules, the employee may not have to serve waiting days again. This can change the payment outcome significantly.

For example, if two sickness periods are close enough to be linked, an employee returning to absence may receive SSP from day one of qualifying absence in the second period. Payroll teams should track dates carefully and avoid resetting waiting days automatically without checking linkage criteria.

The 28-week entitlement cap

SSP has a maximum duration of 28 weeks per period of entitlement. If an employee has already received SSP for several weeks, only the remaining balance is available. Once the cap is reached, statutory payments stop, although contractual sick pay may continue if the employment contract provides it.

Employers should maintain transparent records showing:

• Total weeks SSP paid to date.
• Remaining weeks available.
• Which absences were linked for SSP purposes.
• Any contractual sick pay paid alongside or in place of SSP.

This recordkeeping protects both sides and reduces payroll disputes.

SSP versus occupational sick pay: practical comparison

Many employers offer occupational sick pay (also called company sick pay). This can be more generous than SSP, for example full salary for a limited number of weeks. In some contracts, occupational sick pay includes SSP; in others, it tops SSP up to a higher figure. Always read policy wording.

Scenario	Typical weekly amount (£)	Duration example	Employee income effect
SSP only (2024/25 rate)	116.75	Up to 28 weeks	Provides minimum legal support, usually lower than normal take-home pay.
Company sick pay at 50% salary	Varies by salary	Commonly 4-26 weeks	Higher income stability than SSP alone.
Company sick pay at 100% salary	Varies by salary	Often limited period	Strong short-term protection but often with strict policy conditions.

Where occupational sick pay exists, employees should ask HR whether SSP is included within that amount or paid separately. That single detail can materially change the expected payslip figure.

Common mistakes in UK sick pay calculations

• Using calendar days instead of qualifying days when calculating the daily SSP amount.
• Ignoring waiting days in new sickness periods.
• Applying waiting days twice where linked-period rules should remove them.
• Forgetting prior SSP usage and accidentally exceeding the 28-week cap.
• Using outdated SSP rates after tax-year changes.
• Not checking average weekly earnings against the Lower Earnings Limit.

Each of these mistakes can result in underpayment or overpayment. Underpayment can create employee hardship and grievances; overpayment can require later recovery and create administrative friction.

How employees can check their own SSP estimate

If you are an employee, you can use a calculator like the one above for a practical estimate before payday. Start with your normal work pattern, then count qualifying days off sick in the period. Check if your absence is linked to a previous one and whether waiting days should apply. If your weekly earnings are near the Lower Earnings Limit, verify your payroll reference period and average calculation method with your employer.

When in doubt, ask payroll for a breakdown. A good breakdown should show your qualifying days, waiting days deducted, daily SSP rate used, and any remaining entitlement under the 28-week cap.

How employers can build a compliant SSP process

1. Set annual reminders to update SSP and earnings thresholds in payroll software.
2. Train line managers to record sickness dates accurately and promptly.
3. Use a standard SSP checklist before approving payments.
4. Document linked-period decisions clearly in case of audit or challenge.
5. Issue transparent payslip explanations where amounts change materially.

Employers with seasonal or irregular workforces should pay extra attention to average earnings calculations and variable-day work patterns, as these are frequent sources of complexity.

Trusted official sources

For current legal guidance and rates, use official sources first:

• GOV.UK: Statutory Sick Pay overview
• GOV.UK: Employer responsibilities for SSP
• ONS: Sickness absence in the UK labour market

Final takeaway

Sick pay calculation in the UK is manageable when broken into clear stages: eligibility, qualifying days, waiting days, and entitlement cap. If you keep those four pillars in focus, most SSP calculations become straightforward and auditable. Use tools for estimation, but always confirm final payroll treatment against current official rules and the employee’s contract. This protects income certainty for employees and compliance confidence for employers.