If you are too ill to work, your employer must pay you Statutory Sick Pay (SSP) for up to 28 weeks — provided you meet the eligibility criteria. Many employers offer enhanced sick pay above the statutory minimum. This guide covers what you are entitled to and how it affects your finances.
SSP rates for 2026/27
SSP is £116.75 per week (2026/27), paid for up to 28 weeks. It is paid from the 4th consecutive day of illness (the first 3 days are "waiting days" — unpaid). SSP is paid on your normal pay days and taxed through PAYE like regular earnings.
Eligibility
- You must be an employee (not self-employed)
- You must have been ill for at least 4 consecutive days
- You must earn at least £123/week (the Lower Earnings Limit)
- You must provide evidence of illness (self-certification for 7 days, fit note from GP after that)
Is SSP taxed?
Yes — SSP is taxable income subject to income tax and National Insurance through PAYE. However, because the weekly amount is low (£116.75 = ~£6,000 annualised), if SSP is your only income for a significant period, you may fall within your Personal Allowance and pay no tax at all.
Enhanced company sick pay
Many employers offer more than SSP — often full pay for a number of weeks/months, then half pay, then SSP only. Check your contract or employee handbook. Enhanced sick pay is taxed as normal earnings.
After SSP runs out
After 28 weeks of SSP, your employer will issue a form SSP1 and you can apply for Employment and Support Allowance (ESA) or Universal Credit. These benefits have different rules around means-testing and taxation.
Impact on pension and other deductions
During SSP-only periods, your pension contributions may reduce (percentage-based) or pause entirely (salary sacrifice schemes often cannot operate below minimum wage). Check with your employer how sickness affects your pension.
Budget during illness
Use the income tax calculator with your reduced annual income to see how much tax you will actually owe. A year with significant sick leave often results in a tax refund — keep your P60 and check your Personal Tax Account after the year ends.