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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 (no minimum 4-day requirement for payment, but must meet SSP conditions)

  3. Earn at least £123 per week on average (Lower Earnings Limit)

  4. 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

Create SSP Leave Requests

Under the new HMRC rules (from 6 April 2026): 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

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 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

Helpful Links

Need Help?

If you need support with SSP in Workforce:

  • Contact the Support Team support@workforce.com

  • Use the HMRC calculator to double-check manual edge cases.

Leave Types

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