Glossary term

Sick Pay

Sick pay is the income employees receive when they are unable to work due to illness or injury.

benefits

Category

intermediate

Difficulty

5 min read

Read time

2025-01-15

Updated

Definition

Short definition

Sick pay is the income employees receive when they are unable to work due to illness or injury.

Detailed explanation

Sick pay ensures employees continue to receive income when they are too ill to work. There are two main types: statutory sick pay (SSP) and occupational or company sick pay.

Statutory Sick Pay is the legal minimum employers must pay to eligible employees. Many employers offer enhanced company sick pay schemes that provide higher pay levels and longer coverage periods.

Effective sick pay policies support employee wellbeing and recovery, reduce presenteeism (working while ill), and help maintain a healthy workforce.

Practical guidance

How it works

When an employee is sick, they notify their employer and provide evidence if required (self-certification for up to 7 days, fit note for longer). The employer pays SSP from the 4th qualifying day. Many employers offer enhanced company sick pay instead of or in addition to SSP.

Best practices

Create clear sickness absence policies

Automate sick pay calculations

Track absence patterns for wellbeing support

Consider occupational health referrals

Legal context

Legal basis

Social Security Contributions and Benefits Act 1992, SSP Regulations

Jurisdiction: UK

Key provisions

SSP is £116.75 per week (2024-25 rate)

Paid from 4th consecutive day of sickness

Payable for up to 28 weeks

Employee must earn at least £123 per week on average

Official source

Frequently asked questions

When do I qualify for Statutory Sick Pay?

You qualify for SSP if you're an employee, have been ill for 4+ consecutive days (including non-working days), earn at least £123 per week on average, and have notified your employer of your sickness.

What's the difference between SSP and company sick pay?

SSP is the legal minimum employers must pay (£116.75/week). Company or occupational sick pay is enhanced sick pay offered by employers, often providing full or partial salary for a period of sickness.

How long can I receive sick pay?

SSP can be paid for up to 28 weeks. Company sick pay terms vary by employer - check your employment contract or staff handbook for details.