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Statutory Sick Pay (SSP) in Payroll

This guide explains how Statutory Sick Pay (SSP) works in the UK and how it's managed in Workforce Payroll.

What's covered in this guide?:

What is SSP (Statutory Sick Pay)?

Statutory Sick Pay (SSP) is a UK government-mandated payment that employers must provide to eligible employees who are unable to work due to illness.

It provides a minimum level of income during sickness absence and is paid by the employer through payroll.

Key Features of SSP:

  • Paid by employers (not directly by the government)

  • Paid at the lower of:

    • 80% of average weekly earnings

    • £123.25 per week (2026–27 tax year cap)

  • Payable for up to 28 weeks

  • Subject to PAYE income tax and National Insurance

  • ✅ Payable from the first qualifying day of sickness (no waiting days)

SSP Eligibility Criteria:

Employees may qualify if they:

  1. Have an employment contract

  2. Are off sick and meet the SSP conditions (there is no earnings threshold to qualify, and no minimum number of sick days before payment begins)

  3. Provide required notice and evidence

Enable SSP in Workforce Payroll

The SSP leave type is included by default in Workforce Payroll.

To enable SSP:

  1. Navigate to Payroll > Payroll Settings > Leave Types

  2. Select Statutory Sick Pay (SSP)

  3. Under Who will the leave rule apply to?, select relevant employees

How SSP Works in Workforce Payroll

Workforce Payroll automates SSP by:

  • Checking eligibility requirements

  • Calculating SSP using AWE and HMRC caps

  • Including SSP in payroll runs

Accruing holiday leave while on SSP

You can choose to let holiday leave types keep accruing while an employee is on SSP.

To turn this on:

  1. Go to Payroll > Payroll Settings > Leave Types and open the holiday leave type you want to configure.

  2. Under Balance Configuration, choose Leave balance accrues.

  3. Tick Accrues during statutory leave.

This setting is off by default, and it isn't available for leave types that deduct from a starting balance.

📝 Note: "Accrues during statutory leave" is a general setting that applies to any statutory leave with an entitlement configuration, not one built specifically and only for SSP, but using it on your holiday leave type will cause that holiday balance to keep accruing during an employee's SSP absence.

Once it's turned on, approving an SSP leave request accrues that holiday type at its usual accrual rate, based on the approved hours on the request. Accrued hours appear in the employee's live balance as soon as the request is approved.

Note: Accrual only applies to the built-in SSP leave type. A custom leave type named "sick pay" or similar won't trigger accrual, it must be the statutory SSP type.

Create SSP Leave Requests

Create a single SSP leave request starting from the first day of sickness.

Example

If an employee is sick Monday–Friday:

  • Monday–Friday → SSP leave

SSP Daily Rates

SSP is automatically calculated based on:

  • Average weekly earnings

  • HMRC statutory cap

  • Working pattern

For sickness starting on or after 6 April 2026, SSP is paid at the lower of:

  • 80% of average weekly earnings

  • £123.25 per week

You do not need to enter these manually.

Note: Workforce automatically updates SSP rates each tax year in line with HMRC changes.

How SSP is paid in Workforce Payroll

SSP appears as a separate line item in payroll. It is:

  • Paid on the normal payday

  • Subject to tax and National Insurance

SSP stops when:

  • The employee returns to work

  • 28 weeks is reached

  • The employee becomes ineligible

Example calculation

If an employee earns £200/week:

  • 80% = £160

  • Cap = £123.25

  • SSP paid = £123.25

FAQs

SSP is approved but isn’t on the payslip. Why?

Check:

  • the leave request uses the Statutory Sick Pay (SSP) leave type, not a sick leave type you created yourself

  • the leave request is approved

  • the timesheet has been exported to the pay run

  • the employee hasn’t already used their 28 weeks of SSP

  • if the leave request asks for the employee’s working days, they’re selected

If you see No statutory leave type exists for this Leave Request when exporting, go to Payroll Setup > Leave Types. If you see There was a problem creating your payroll/statutory leave types, click Retry. Otherwise, contact Workforce support.

If everything looks right, contact Workforce support.

How much SSP have we paid?

Run the Activity Details report. It has a column for each statutory leave type, for example Statutory Sick Pay (SSP) (£). If you also have an ordinary leave type with the same name, the statutory column has (Statutory) added.

Why does SSP show in hours on timesheet reports?

Timesheet reports show leave in hours, even if the leave type is set to be viewed in days. To see leave in days, use the Leave Balance Report.

How do I put someone on SSP?

  1. Check that the SSP leave type applies to them. Go to Payroll > Payroll Settings > Leave Types > Statutory Sick Pay (SSP), and look under Who will the leave rule apply to?

  2. Go to Time & Attendance > Leave > Leave Requests and click New Leave Request.

  3. Choose the employee and the Statutory Sick Pay (SSP) leave type.

  4. Add one request from the first day of sickness to the date you expect them back, even if it’s several weeks. If you’re asked for their working days, select them.

  5. Approve the request.

Workforce works out the SSP amount for you from their average weekly earnings and working pattern. You don’t need to enter it yourself. It’s paid in their normal pay runs once the timesheets are exported.

📝 Note: Use the Statutory Sick Pay (SSP) leave type, not a sick leave type you’ve created yourself. Otherwise SSP won’t be paid.

Helpful Links

Need Help?

If you need support with SSP in Workforce:

Leave Types

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