Statutory payments explained
A guide to statutory sick pay and family pay for UK employers, including 2026/27 rates, eligibility and reclaiming payments through payroll.
In one sentence
Statutory pay is the legal minimum an employer must pay eligible employees when they are off for sickness or family reasons.
Quick answer
- Statutory payments go through payroll like wages, with tax and National Insurance deducted.
- For 2026/27, SSP is £123.25 a week or 80% of average weekly earnings, whichever is lower, for up to 28 weeks.
- Employers can usually reclaim 92% of qualifying family pay, or 109% with Small Employers' Relief.
- The employer normally bears the cost of SSP; it is not on HMRC's statutory-pay reclaim list.
What are statutory payments?
Statutory pay is the legal minimum an employer must pay eligible employees when they are off for sickness or family reasons. A statutory payment goes through payroll like wages, with tax and National Insurance deducted.
For a small business owner, the key questions are who qualifies, how much to pay and how much the business can reclaim. The rules differ between sick pay and family pay.
Self-employed people do not get statutory pay from an employer.
Statutory pay rates for 2026/27
Average weekly earnings (AWE) means the employee's average earnings per week. Where a rate has two options, use the lower amount.
| Payment | 2026/27 rate | Payment period |
|---|---|---|
| Statutory Sick Pay (SSP) | £123.25 or 80% of AWE, whichever is lower | Up to 28 weeks |
| Statutory Maternity Pay (SMP) | 90% of AWE for the first 6 weeks; then £194.32 or 90% of AWE, whichever is lower | Up to 39 weeks: first 6 weeks, then next 33 weeks |
| Statutory Adoption Pay (SAP) | 90% of AWE for the first 6 weeks; then £194.32 or 90% of AWE, whichever is lower | Rate changes after the first 6 weeks |
| Statutory Paternity Pay (SPP) | £194.32 or 90% of AWE, whichever is lower | Up to 2 weeks |
| Shared Parental Pay | £194.32 or 90% of AWE, whichever is lower | Depends on entitlement |
| Statutory Parental Bereavement Pay | £194.32 or 90% of AWE, whichever is lower | Depends on entitlement |
| Statutory Neonatal Care Pay | £194.32 or 90% of AWE, whichever is lower | Depends on entitlement |
Does an employer have to pay sick pay?
You must pay SSP if the employee qualifies. You can offer more through a company sick pay scheme, but you cannot offer less than SSP.
SSP is paid for qualifying days, meaning days the employee normally works. It is paid from the first day of illness once the employee is sick for at least one full working day.
To qualify, the employee must:
- Have an employment contract and have done some work under it.
- Be sick for at least one full working day.
- Give notice and provide proof when needed.
The employee should tell you within your time limit, or within 7 days if you have not set one. You can only ask for a fit note if they are off for more than 7 days in a row. Use form SSP1 if they do not qualify or their SSP is ending.
See GOV.UK's employer sick pay guidance.
Who pays for Statutory Sick Pay?
The employer normally bears the cost of SSP. SSP is not on HMRC's statutory-pay reclaim list. If the business is insolvent, HMRC pays SSP for employees who continue working.
Who qualifies for Statutory Maternity Pay?
The qualifying week is the 15th week before the expected week of childbirth. For SMP, the employee must:
- Be on your payroll in the qualifying week.
- Have been continuously employed for at least 26 weeks up to any day in that week.
- Have average earnings of at least the lower earnings limit: £129 a week for 2026/27.
- Give 28 days' notice.
- Provide proof of pregnancy, usually a MATB1, within 21 days of the SMP start date.
Check GOV.UK's maternity pay guidance for employers when checking eligibility and setting up payroll.
What is Statutory Paternity Pay?
Statutory Paternity Pay is pay for eligible employees taking paternity leave. For 2026/27, paternity pay is £194.32 a week or 90% of AWE, whichever is lower, for up to 2 weeks.
The employee must be employed up to the date of birth. They must earn an average of at least £129 a week before tax and have been continuously employed for at least 26 weeks up to any day in the qualifying week.
Use GOV.UK's paternity pay and leave guidance to check their circumstances.
Reclaiming statutory payments from HMRC
Employers can usually reclaim 92% of SMP, SPP, SAP, Statutory Parental Bereavement Pay, Statutory Neonatal Care Pay and Shared Parental Pay.
Small Employers' Relief: reclaiming 109%
You can reclaim 109% if your business qualifies for Small Employers' Relief. Your business must have paid £45,000 or less in Class 1 National Insurance in the last complete tax year before the qualifying week. Ignore reductions such as Employment Allowance when checking this limit.
See our Employment Allowance guide for that separate relief.
Worked example: £1,000 SMP paid
Say you pay £1,000 of SMP. At 92%, you reclaim £920, so the business bears £80. At 109%, you reclaim £1,090, which is £90 more than you paid.
How to make the claim
Reclaim through your payroll software on an Employer Payment Summary (EPS). Check the payment type and whether the business qualifies for Small Employers' Relief before submitting the claim.
See HMRC's guidance on recovering statutory payments.
Can an employer claim back SSP?
SSP is not included in this reclaim list. Do not apply the family-pay recovery percentages to sick pay. The employer normally pays that cost.
Putting statutory pay through payroll
- Identify the type of absence and check the employee's eligibility.
- Gather the notice and evidence needed for that payment.
- Check average weekly earnings and enter the correct statutory payment in payroll.
- Check whether family pay can be reclaimed and submit the EPS through your payroll software.
- Keep the calculations and supporting records together.
Our guides to RTI reporting, PAYE payment dates and payroll records cover the related payroll tasks.
For help with employer payroll, see our payroll service.
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Book a call →Frequently asked questions
What is a statutory payment?
A statutory payment is the legal minimum pay an employer must provide to an eligible employee during sickness or family-related absence. It is paid through payroll, with tax and National Insurance deducted.
Can an employer claim back SSP?
SSP is not on HMRC's statutory-pay reclaim list, so the employer normally bears the cost. If the business is insolvent, HMRC pays SSP for employees who continue working.
Do employers have to pay sick pay?
Yes, if the employee meets the SSP eligibility rules. A company scheme can pay more than SSP but cannot pay less. SSP is paid for qualifying days from the first day of illness once the employee is sick for at least one full working day.
What is statutory paternity pay?
Statutory Paternity Pay is pay for eligible employees taking paternity leave. For 2026/27, it is £194.32 a week or 90% of average weekly earnings, whichever is lower, for up to two weeks.
How much statutory family pay can an employer reclaim?
Employers can usually reclaim 92% of eligible statutory family pay through an Employer Payment Summary (EPS). Qualifying businesses can reclaim 109% under Small Employers' Relief.
Key terms
- Statutory pay
- The legal minimum an employer must pay eligible employees during sickness or family-related absence.
- Average weekly earnings
- An employee's average earnings per week, used to check eligibility and calculate statutory pay. Often shortened to AWE.
- Qualifying week
- For maternity pay, the 15th week before the expected week of childbirth. Employment and earnings checks use this point.
- Small Employers' Relief
- Relief allowing qualifying employers to reclaim 109% of eligible family pay. The Class 1 NI limit is £45,000 in the relevant last complete tax year, ignoring reductions such as Employment Allowance.
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