Company sick pay: what is normal and what you are owed

The short answer: company sick pay is anything your employer pays when you are off sick above Statutory Sick Pay (SSP). It is not required by law, so it depends entirely on your contract. Some employers pay full pay for months; others pay nothing beyond the legal £123.25 a week.

What 8 weeks off sick pays on £30,000

The difference is huge. On SSP alone you would get about a fifth of your normal pay. That is why it is worth knowing your scheme before you need it.

How company sick pay schemes usually work

• Full pay for a set period, then half pay or SSP.
• Rising with service: new starters often get little or nothing, with more after one, two or five years.
• A rolling 12 months: most schemes look back over the last year. If you were off for three weeks in spring, that comes off what you can have in autumn.
• Discretionary schemes: some contracts say your employer "may" pay. Then it is their choice each time, though they must be fair and consistent.
• Conditions: you usually have to follow the reporting rules and send fit notes on time. Miss them and company pay can be stopped, though SSP rules still apply.

Public sector sick pay

The NHS, councils and schools have national schemes. NHS staff on Agenda for Change get this in any 12 months:

Local government staff on the national agreement get the same pattern, though the first-year half pay starts only after four months' service. Teachers in England and Wales get up to 100 working days at full pay and 100 at half pay after four years. Civil service and police schemes are similar in size but vary, so check your own terms.

Where to find your sick pay terms

Your written statement of terms, which you should get on or before your first day, must tell you about sick pay or say where to find it, such as a staff handbook or intranet policy. If it says nothing beyond SSP, assume you only get SSP.

Some employers also offer income protection insurance, which can pay a share of your salary after months off. It is separate from sick pay, so check whether you have it.

How SSP fits in

SSP is paid from your first day off and lasts up to 28 weeks. It is £123.25 a week, or 80% of your average earnings if that is lower. If your company scheme pays more, the SSP is counted as part of it, not added on top. When company sick pay drops to half pay, the employer usually tops up so you get at least SSP. See how statutory sick pay works.

When company sick pay runs out

You drop to SSP until it runs out at 28 weeks. After that you may be able to claim New Style Employment and Support Allowance or Universal Credit. Long absences can also lead to a capability process at work, so keep in touch with your manager and occupational health.

Other things to know

• Holiday keeps building up while you are off sick, and you can carry over unused statutory days.
• Tax: sick pay is taxed as normal. A long spell on half pay often means you pay less tax, and you may get a refund.
• Pension: contributions usually continue on what you are paid. Some public sector schemes protect your pension while on reduced pay.
• Phased return: you may get full pay for the hours you work and sick pay for the rest.
• Disability: if your absence is linked to a disability, your employer may need to make reasonable adjustments, such as discounting some absence.

Worked example: how the top-up works

You normally earn £500 a week and your contract promises full pay when sick. Your employer pays £123.25 as SSP and tops it up by £376.75, so you still get £500. On half pay, the total would be £250: still made up of SSP plus a smaller top-up. Payroll only ever pays the scheme amount, not the scheme plus SSP.

SSP and company sick pay compared

How sick pay shows on your payslip

Your basic pay line is reduced for the days you were off, and sick pay appears as its own line. You may see "SSP" and a separate line such as "OSP" (occupational sick pay), "CSP" (company sick pay) or simply "sick pay". If you only see SSP and your contract promises more, ask payroll. Our guide to reading your payslip explains the other lines.

What a good sick pay policy tells you

• Whether there is a qualifying period, such as 3 or 6 months, before company sick pay starts.
• How much you get and for how long, and whether it grows with service.
• Whether it runs over a rolling 12 months or resets each year.
• How and when to report sickness, and when you need a fit note.
• What happens when it runs out, and whether it is discretionary.

If the policy is unclear, ask HR in writing. Their answer gives you something to rely on later.

Sick on holiday, during notice or probation

• On holiday: if you fall ill, you can usually treat those days as sick leave and take the holiday later, provided you report it properly.
• During notice: your contract decides whether you get company sick pay or only SSP.
• On probation: many schemes pay only SSP until probation ends, but SSP is still due from day one.

If your employer will not pay

Raise it with your manager or HR first, quoting the part of your contract or policy that applies. If that fails, use the formal grievance process. Unpaid contractual sick pay can be claimed as an unlawful deduction from wages, but you must contact Acas for early conciliation within three months less one day of the missed payment. For SSP disputes, you can also ask HMRC to make a decision.

This is general information, not legal advice. SSP figures are for 2026/27 in England, Scotland and Wales. Northern Ireland has its own SSP rules.