How Is Sick Pay Calculated

Calculate your statutory sick pay (SSP) entitlement based on your employment details

How Is Sick Pay Calculated in the UK? (2024 Complete Guide)

Understanding how sick pay is calculated is crucial for both employees and employers. The UK has specific rules governing Statutory Sick Pay (SSP) and occupational sick pay schemes. This comprehensive guide explains everything you need to know about sick pay calculations, eligibility criteria, and your rights as an employee.

1. Statutory Sick Pay (SSP) Basics

Statutory Sick Pay is the minimum amount employers must pay employees who are too ill to work. As of April 2024, the key details are:

• Current rate: £116.75 per week (2024/25 tax year)
• Daily equivalent: £23.35 (for 5 working days)
• Maximum duration: 28 weeks in any 3-year period
• Waiting days: First 3 days are unpaid (qualifying days)

2. Eligibility Criteria for SSP

To qualify for Statutory Sick Pay, you must:

1. Be classified as an employee (not self-employed or a contractor)
2. Have been sick for at least 4 consecutive days (including non-working days)
3. Earn at least £123 per week (the Lower Earnings Limit for National Insurance)
4. Have told your employer you’re sick before their deadline (or within 7 days)
5. Provide proof of illness if sick for more than 7 days (fit note from a doctor)

Official Government Source:

For the most current eligibility requirements, visit the UK Government SSP page.

3. How SSP is Calculated

The calculation follows these steps:

1. Determine qualifying days: These are the days you normally work. For a Monday-Friday worker, these would be Monday to Friday.
2. Identify the first qualifying day: This is the first day you’re sick that would normally be a working day.
3. Count waiting days: The first 3 qualifying days are unpaid (though some employers pay from day 1).
4. Calculate payable days: After waiting days, count each qualifying day you’re sick.
5. Apply the daily rate: Multiply payable days by £23.35 (2024 daily rate).

Calculation Example:

Sarah earns £600/week and is sick for 10 working days starting Monday:

• Days 1-3: Waiting days (no payment)
• Days 4-10: 7 payable days
• Total SSP: 7 × £23.35 = £163.45

4. Occupational vs Statutory Sick Pay

Feature	Statutory Sick Pay (SSP)	Occupational Sick Pay
Legal requirement	Yes (minimum)	No (voluntary)
Payment amount	£116.75/week	Varies (often full pay for set period)
Waiting period	3 days	Often none or shorter
Duration	Up to 28 weeks	Varies (commonly 3-6 months full pay)
Eligibility	£123+ weekly earnings	Set by employer (often longer service required)

Many employers offer occupational sick pay that’s more generous than SSP. Common schemes include:

• 1 month full pay, 2 months half pay
• 6 weeks full pay, 6 weeks half pay
• 3 months full pay for long-service employees

5. Special Cases and Exceptions

Self-employed workers:

Not eligible for SSP. May claim Universal Credit or Employment and Support Allowance (ESA) instead.

Agency workers:

Eligible for SSP if they meet the earnings threshold and have a contract with the agency.

Zero-hours contracts:

Eligible if they’re classed as employees and meet the earnings threshold over an 8-week period.

Multiple jobs:

Can receive SSP from each employer if eligible for each job separately.

6. Sick Pay and Tax/NI Contributions

SSP is treated as earnings and subject to:

• Income tax (if you pay tax)
• Class 1 National Insurance contributions
• Pension contributions (if you’re in a workplace pension)

Your employer will deduct these automatically through PAYE.

7. What to Do If You’re Refused Sick Pay

If you believe you’re entitled to SSP but your employer refuses:

1. Check your eligibility using the government calculator
2. Ask your employer for a written explanation
3. Contact HMRC’s SSP Dispute Team if you disagree with their decision
4. Consider getting advice from Citizens Advice

8. Sick Pay During Furlough or Layoff

Special rules applied during COVID-19:

• Furloughed employees could receive SSP if they met the eligibility criteria
• SSP was payable from day 1 (waiting days were temporarily removed)
• Employers could reclaim SSP for COVID-related absences

As of 2024, normal SSP rules have been reinstated.

9. International Comparisons

Country	Sick Pay Rate	Waiting Period	Duration
United Kingdom	£116.75/week	3 days	28 weeks
Germany	100% of salary	None	6 weeks
France	50-100% of salary	3 days	Up to 3 years
United States	No federal requirement	Varies by state	Varies by state
Sweden	80% of salary	1 day	Up to 364 days

Academic Research:

A 2023 study by the London School of Economics found that countries with more generous sick pay systems had lower productivity losses from illness due to faster recovery times and reduced presenteeism.

10. Future of Sick Pay in the UK

There are ongoing discussions about reforming SSP:

• Removing waiting days: Proposals to make SSP payable from day 1
• Increasing the rate: Campaigns to raise SSP to at least £350/week
• Extending eligibility: Potentially covering the self-employed and lowest earners
• Mental health inclusion: Better recognition of mental health conditions

The 2024 Spring Budget included a consultation on SSP reforms, with potential changes expected in 2025.

11. Practical Tips for Employees

• Know your contract: Check your employment contract for occupational sick pay details
• Keep records: Document all sick days and medical certificates
• Communicate early: Inform your employer as soon as possible when sick
• Understand fit notes: After 7 days, you’ll need a doctor’s note (though some employers require them sooner)
• Consider insurance: Income protection insurance can supplement sick pay
• Know your rights: You can’t be dismissed for being sick if you follow proper procedures

12. Employer Responsibilities

Employers must:

• Pay SSP to all eligible employees
• Keep records of sick leave and payments for 3 years
• Not discriminate against employees for taking sick leave
• Have a clear sick pay policy in writing
• Consider reasonable adjustments for disabled employees

Failure to pay SSP can result in:

• HMRC penalties
• Employee tribunals
• Damage to employer reputation

Frequently Asked Questions

Can I get sick pay if I’m self-employed?

No, self-employed workers aren’t eligible for SSP. You may qualify for Universal Credit or Employment and Support Allowance instead.

What if I’m sick while on holiday?

If you become ill while on annual leave, you can:

• Take the time as sick leave instead of holiday
• Reclaim the holiday days for later use
• Receive SSP if you meet the eligibility criteria

Does sick pay affect my holiday entitlement?

No, sick leave doesn’t reduce your statutory holiday entitlement. You continue to accrue holiday days while off sick.

Can my employer ask for medical details?

Employers can ask for:

• Proof of illness (fit note after 7 days)
• General information about when you might return

They cannot:

• Demand specific medical details
• Contact your doctor without your permission

What if I’m sick during notice period?

You’re still entitled to SSP during your notice period if you meet the eligibility criteria. Some employers may pay occupational sick pay during notice periods – check your contract.

Final Thoughts

Understanding how sick pay is calculated helps you know what to expect when illness strikes. While Statutory Sick Pay provides a basic safety net, many employers offer more generous occupational schemes. Always check your contract and know your rights.

If you’re unsure about your entitlement, use the government’s SSP calculator or seek advice from Citizens Advice. Remember that sick pay rules can change, so always check the most current government guidance.

For employers, having clear sick pay policies and treating employees fairly during illness can improve morale and reduce turnover. Consider offering occupational sick pay as part of your benefits package to attract and retain talent.