Statutory Sick Pay: A Practical Guide for UK Retail Employers

Key Takeaways

• UK employers must pay SSP from day one of sickness absence at the lower of £123.25 per week or 80% of average weekly earnings, for up to 28 weeks.

• Retail businesses with variable-hours staff need accurate absence records and clear qualifying-day calculations to pay SSP correctly.

• The April 2026 changes removed waiting days and introduced an earnings-based rate, increasing the administrative burden on shift-heavy businesses.

• Leave management software can help you centralise fit notes, track the 28-week cap, and keep your SSP records audit-ready.

If you manage a retail team in the UK, you already know that sickness absence is part of the job. Staff call in sick, rotas need last-minute cover, and payroll gets complicated fast. But Statutory Sick Pay (SSP) adds another layer: a legal obligation to pay eligible employees when they can't work due to illness. If you get it wrong, you risk underpaying your team, failing an HMRC audit, or both.

This guide breaks down exactly how SSP works for retail employers, what changed in April 2026, and how to track it all without drowning in paperwork.

In this article:

1. What is statutory sick pay?

2. Who qualifies for SSP in your retail team

3. How much SSP you need to pay

4. How to calculate SSP for variable-hours retail staff

5. What changed in April 2026

6. How to track SSP across your retail business

7. When SSP ends and what happens next

8. FAQ

What is statutory sick pay?

Statutory Sick Pay is the legal minimum sick pay employers are required to pay employees who are too ill to work. It's a statutory obligation under UK employment law. If a team member meets the eligibility criteria, SSP is paid through your normal payroll.

As a retail employer, the key facts are:

• SSP applies from the first day of sickness absence (as of April 2026).

• It lasts for up to 28 weeks per period of sickness.

• You pay SSP through your payroll. You can't reclaim it from HMRC.

• SSP is separate from any contractual sick pay scheme you might offer on top.

For the full SSP rules and rates, check the government's official guidance.

For salaried office workers, SSP administration is fairly straightforward. For retail team management, it's a different story. Your team likely includes part-time workers, people on variable-hours contracts, and seasonal staff. Each person's SSP calculation depends on their individual working pattern, their earnings, and their qualifying days. That complexity multiplies when you're managing dozens of team members across multiple locations.

Some employers choose to offer contractual sick pay above SSP. If you do, check whether your scheme allows you to offset SSP against it, or whether you're paying both. For broader guidance on building an annual leave policy, see our step-by-step guide.

Who qualifies for SSP in your retail team

Not every team member will be eligible for SSP. To qualify, an employee must meet all of the following criteria:

• Earn at least £123 per week on average (the Lower Earnings Limit for 2026/27)

• Be classified as an employee (not genuinely self-employed)

• Be off sick for four or more consecutive days, including non-working days

• Notify you of their absence within your required timeframe (or within seven days if you don't have a set policy)

Part-time and variable-hours workers

Part-time staff qualify for SSP as long as they meet the earnings threshold. This applies even if they only work one or two days a week. The key test is average weekly earnings, not the number of hours worked.

For retail workers on variable-hours contracts, eligibility depends on whether their average weekly earnings over the relevant eight-week reference period meet or exceed £123 per week. If a team member's hours fluctuate week to week (which is common in retail), you'll need to calculate this average carefully.

Zero-hours contract workers

Zero-hours workers can qualify for SSP if they meet the earnings threshold and have an employment contract (even an implied one). The question isn't the type of contract but whether the worker is legally an employee and earns enough. If you're unsure about a specific team member's status, ACAS guidance on employment status can help. For more on managing absences and leave across your team, read our leave management guide.

Agency and seasonal staff

The agency usually pays SSP to agency workers, not you as the hiring business. Seasonal employees, on the other hand, are your responsibility if they're employed directly and meet the eligibility criteria.

How much SSP you need to pay

The SSP rate from April 2026 is the lower of:

• £123.25 per week (the flat rate), or

• 80% of the employee's average weekly earnings

This 80% cap is new. It means that lower-paid workers (those earning less than the flat rate divided by 0.8, which is roughly £154.06 per week) will receive 80% of their average earnings instead of the full flat rate.

Working out the daily rate

You don't always pay SSP for a full week. You pay for each qualifying day the employee is absent. Qualifying days are the days the employee would normally work.

To calculate the daily rate:

1. Take the applicable weekly rate (either £123.25 or 80% of average weekly earnings)

2. Divide by the number of qualifying days in that week

For a team member who normally works five days, the daily rate at the flat rate would be £123.25 / 5 = £24.65. For someone who works three days, it would be £123.25 / 3 = £41.08.

For retail staff with irregular working patterns, qualifying days can change from week to week. If a team member works three days one week and five the next, the daily SSP rate differs in each week.

SSP is subject to tax and National Insurance, so you deduct these as you would from normal pay. Getting payroll calculations right matters: here are five ways to prevent payroll mistakes in shift businesses.

How to calculate SSP for variable-hours retail staff

This is where SSP gets tricky for retail employers. Most SSP guides stop at the flat rate, but your team probably doesn't work the same hours every week. Here's how to calculate SSP step by step for a variable-hours worker.

Step 1: Identify the qualifying days

Qualifying days are the days the employee would normally work in the relevant week. For a retail team member with a set rota, this is straightforward. For someone whose shifts change week to week, look at the rota or working pattern for each week of absence.

Step 2: Calculate average weekly earnings

Average weekly earnings (AWE) are based on the employee's gross pay over the eight-week reference period ending on the last normal pay date before the sickness started. Add up all gross earnings in those eight weeks and divide by eight.

Step 3: Determine the applicable rate

Compare the flat rate (£123.25) with 80% of the AWE you calculated:

• If 80% of AWE is lower than £123.25, use 80% of AWE

• If 80% of AWE is higher than £123.25, use the flat rate of £123.25

Step 4: Calculate the daily rate

Divide the weekly rate by the number of qualifying days in that week.

Step 5: Multiply by qualifying days absent

For each week of sickness, multiply the daily rate by the number of qualifying days the employee was absent.

Worked example

Sam works in a high-street clothing store. Their rota typically alternates: three shifts one week, four shifts the next. Sam falls ill and is off for two full weeks.

• AWE (calculated over the previous eight weeks): £210

• 80% of AWE: £168. This is higher than £123.25, so the flat rate of 123.25 applies

Week 1 (three qualifying days absent): Daily rate = £123.25 / 3 = £41.08. SSP for week 1 = £41.08 x 3 = £123.25

Week 2 (four qualifying days absent): Daily rate = £123.25 / 4 = £30.81. SSP for week 2 = £30.81 x 4 = £123.25

If Sam's AWE had been £140, the calculation would change: 80% of £140 = £112, which is lower than £123.25, so you'd use £112 as the weekly rate instead.

Linked periods of sickness

If an employee returns to work and then falls sick again within eight weeks, the two periods of sickness link together. This matters because the 28-week SSP cap carries over. You don't start a fresh 28-week count. Keep your absence records clear so you can spot linked periods.

Deputy's time and attendance records give you a clear trail of exactly when each team member was absent. This data makes it easier to identify qualifying days, calculate AWE accurately, and spot linked periods before they catch you out.

What changed in April 2026

The UK government introduced significant changes to SSP in April 2026. If you haven't updated your processes yet, here's what you need to know.

No more waiting days

Previously, the first three qualifying days of sickness were unpaid "waiting days." As of 6 April, 2026, SSP is payable from day one. This means every qualifying absence now costs you from the start, even short-term sickness.

The 80% earnings cap

The new 80% cap means that employees earning less than the flat rate threshold receive 80% of their average weekly earnings instead. This brings more consistency but adds complexity. You now need to calculate AWE for every SSP claim, not just apply the flat rate.

Lower Earnings Limit reduced

The Lower Earnings Limit dropped to £123 per week, bringing more low-paid retail workers into SSP eligibility. If you employ part-time team members or workers on shorter contracts, more of your team may now qualify than before.

What this means for your retail business

UK sickness absence rates reached their highest level in a decade according to CIPD research, and these changes hit retail harder than most sectors. According to Deputy's Big Shift Report 2026, the UK Shift Work Index for retail declined to 0.96, signalling continued contraction in retail employment. For businesses already managing tighter margins, the combination of day-one SSP payments and a broader eligible workforce increases both the volume and cost of sick pay.

You need three things to stay on top of these changes:

• Accurate earnings data to calculate AWE for every claim

• Clear absence records from day one of every sickness absence

• Rota visibility to quickly identify and fill gaps when team members are off sick

How to track SSP across your retail business

Getting the SSP calculation right is only half the challenge. You also need to track it, document it, and manage it across your team. Here's what that looks like in practice.

Records you need to keep

For every SSP claim, you should maintain:

• Dates of each sickness absence (start and end)

• Qualifying days in each week of absence

• The SSP amount paid for each qualifying day

• Fit notes (self-certification for the first seven days, GP fit note after that)

• SSP1 forms issued when SSP ends

• Any linked periods of sickness

HMRC doesn't require a specific format, but your records need to be accurate, accessible, and complete. If you're audited, you'll need to produce them quickly.

Fit note requirements

For the first seven calendar days of sickness, an employee can self-certify. After seven days, they need a fit note from their GP. You should store fit notes securely and link them to the relevant absence period in your records.

Tracking the 28-week cap

SSP runs for a maximum of 28 weeks per period of sickness. For a single, continuous absence, this is easy to track. It gets harder when employees have linked periods (absences separated by eight weeks or fewer). In those cases, the weeks of SSP paid in the first absence count toward the 28-week cap in the second.

Managing SSP across multiple locations

If you operate multiple retail sites, SSP tracking can fragment quickly. Each store might handle absence differently, records might sit in different systems (or in paper folders), and managers might not flag linked periods.

The solution is a centralised system that captures absences, stores documentation, and gives you visibility across every location. According to Deputy's leave management guide, leave management software eliminates manual tracking and enables managers to track balances, absences, and leave entitlement from a single hub. Deputy's HR management tools help you centralise sick leave documentation, store fit notes digitally, and manage absence workflows without the paperwork.

When a team member calls in sick: a quick checklist

1. Record the absence immediately (date, time, reason given)

2. Check if the employee meets SSP eligibility criteria

3. Update the rota and arrange cover using your scheduling software

4. Note the qualifying days for that week

5. Request self-certification or a fit note as appropriate

6. Calculate and pay SSP through your normal payroll

7. Monitor the absence duration and flag any approaching linked periods or the 28-week cap

Gen Z now represents 44% of retail shift workers in the UK, according to the Big Shift Report 2026. With a younger, more mobile workforce, clear and consistent absence processes are more important than ever. A centralised system helps you apply the same standards across every team member and every location.

When SSP ends and what happens next

SSP doesn't last forever. It ends after 28 weeks, or earlier if the employee returns to work, their employment contract ends, or they go into legal custody.

Issuing an SSP1 form

When SSP ends, you need to issue an SSP1 form to the employee. This form allows them to apply for Employment and Support Allowance (ESA) or Universal Credit if they're still too ill to work. Don't delay issuing it. Your employee needs it to access further financial support.

Long-term absence considerations

If a team member has been off for an extended period, consider:

• An occupational health referral to understand their fitness to return

• A phased return to work, with reduced hours or adjusted duties

• Reasonable adjustments under the Equality Act 2010 if the employee has a disability or long-term health condition

A structured return-to-work process protects both the employee and your business. For practical tips on dealing with regular absences, see our guide. It reduces the risk of a relapse, supports the team member's wellbeing, and helps you plan your rota around their gradual return.

Frequently asked questions

How much is statutory sick pay per week in 2026?

SSP is £123.25 per week, or 80% of an employee's average weekly earnings if that amount is lower. Deputy's time and attendance records can help managers calculate average weekly earnings and support SSP administration.

Do part-time retail workers qualify for SSP?

Yes, part-time workers qualify for SSP if they earn at least £123 per week on average. Deputy's workforce management records can help managers review earnings information and support SSP eligibility assessments.

How do SSP waiting days work after April 2026?

Waiting days have been removed. SSP is now payable from the first qualifying day of sickness absence. Deputy's leave tracking captures absences from day one, so your records are complete from the start.

Can employers claim back statutory sick pay?

No. The SSP rebate scheme ended in 2014. Employers bear the full cost of SSP. Deputy helps you manage this cost by giving you visibility into absence patterns and trends across your team.

How do you track SSP for staff across multiple retail locations?

Use a centralised leave management system that captures absences across all sites. Deputy's platform gives you a single view of sickness absence and SSP records across every location, so nothing falls through the gaps.

How can Deputy help me keep SSP records audit-ready?

You need to keep records of dates of sickness, qualifying days, amounts paid, fit notes, and SSP1 forms. Deputy's document management stores these records in one place and supports audit readiness across all your locations.

_The information provided in this article is for general guidance only and does not constitute legal advice. Deputy is designed to support compliance workflows but does not provide legal advice or guarantee compliance. Employment law is subject to change, and you should consult a qualified legal professional or visit _gov.uk_ for the latest SSP rules and rates. Customers remain responsible for configuring the platform appropriately and complying with applicable laws and regulations._

Ready to simplify how you track absence and sick pay across your retail team? Try Deputy for free and see how it can help you stay on top of your SSP obligations.