Company sick pay in the UK: how it works with SSP
What contractual and occupational sick pay are, what your contract must tell you, how discretionary schemes work, and how SSP is offset against company sick pay.
The short answer. Company sick pay, also called contractual or occupational sick pay, is sick pay above the statutory minimum that your contract or employer’s policy provides. If you are eligible for Statutory Sick Pay, your employer must pay at least that, £123.25 a week or 80% of average weekly earnings if lower. SSP usually counts towards company sick pay rather than being added on top.
Company sick pay and SSP side by side
Great Britain rules, checked against GOV.UK, Acas and legislation.gov.uk on 27 October 2026.
| Statutory Sick Pay | Company sick pay | |
|---|---|---|
| Where it comes from | The law | Your contract or your employer’s policy |
| How much | £123.25 a week or 80% of average weekly earnings, whichever is lower | Whatever the contract says, never less than SSP if you are eligible for SSP |
| From when | The first full day of sickness, if you qualify | Set by the scheme |
| How long | Up to 28 weeks | Set by the scheme |
| Where it is written down | Social Security legislation and GOV.UK guidance | Your written statement of particulars, contract or handbook |
| If it is not paid | Raise it with your employer, then HMRC | Raise it with your employer; Acas can advise |
What is company sick pay?
Acas describes it as sick pay written into the contract that is more than statutory sick pay, and says it can be called company, contractual or occupational sick pay. The three names mean the same thing. A scheme might pay full salary for a set number of weeks, then a reduced rate, then SSP only; the structure is whatever your employer has chosen and written down.
What a scheme cannot do is pay less than the statutory amount. If you are eligible for SSP, your employer must pay that as a minimum. Our statutory sick pay guide sets out who qualifies and how the £123.25 figure and the 80% rule work.
What your contract should say
Acas says a worker’s contract should set out how much sick pay is, how long it can last and any rules the employer has for using it. GOV.UK adds a firm deadline: the principal written statement of employment particulars is due on your first day, and sick pay and procedures are among the information your employer must give you on day one, either in that statement or in a separate document.
If you cannot find anything about sick pay in your paperwork, ask HR for the written statement or the sickness absence policy. Silence in the contract does not remove your right to SSP.
Discretionary sick pay
Some schemes are discretionary. Acas explains that this means the employer offers better pay for some sickness circumstances but not for others. If company sick pay is discretionary, the employer must say so in the written statement or contract.
Discretion has limits. Acas says a discretionary policy must not discriminate because of a protected characteristic, for example disability, and must treat part-time workers the same as equivalent full-time employees. If you think discretion has been used against you for one of those reasons, Acas is the place to get advice.
SSP offset: how company sick pay and SSP combine
People often expect SSP on top of their company sick pay. The law works the other way. Under Schedule 12 to the Social Security Contributions and Benefits Act 1992, contractual pay for a day of sickness goes towards the employer’s duty to pay SSP for that day, and SSP paid for a day goes towards the contractual pay for that day. In plain terms, one counts towards the other.
These illustrations use made-up pay, show amounts before tax and National Insurance, and assume a whole week off and that the employee qualifies for SSP:
- Full pay scheme. Pay of £600.00 a week. The employee receives £600.00, of which £123.25 is SSP and £476.75 is company sick pay. Not £723.25.
- Half pay scheme. Half of £600.00 is £300.00. That is more than SSP, so the employee receives £300.00: £123.25 of SSP plus £176.75 of company sick pay.
- Half pay below the SSP floor. A part-time employee averages £180.00 a week. Half pay would be £90.00, but their SSP is £123.25, the lower of £123.25 and 80% of earnings. They cannot get less than SSP, so they receive at least £123.25.
SSP offset on your payslip
Payroll systems show this in different ways. Some payslips list SSP and a company sick pay top-up as separate lines; others show one sick pay figure. Either is consistent with the offset rule. What matters is that the total is at least what your contract promises and never less than SSP. SSP is paid like wages, with tax and National Insurance taken off. If the figures do not add up, ask payroll to show how they were calculated.
Evidence your scheme may ask for
Company schemes often set their own reporting and evidence rules, so read them. The statutory backstop still applies: you self-certify for the first 7 days, and after more than 7 days in a row your employer can ask for a fit note or agree to accept other evidence. A private sick note from a GMC-registered UK doctor is evidence your employer can choose to accept; DWP guidance says it can be accepted in the same way as a fit note, subject to the employer’s agreement. Our guide to each stage of sick leave covers reporting and notes in more detail.
Company sick pay during probation and phased returns
Probation does not affect SSP eligibility. Whether a company scheme applies during probation, or only after a period of service, is a matter for your contract; our page on sick leave during probation covers the rest. On a phased return, you are paid as usual for the hours you work, and SSP can only be paid for full days not worked.
If company sick pay is not paid
Start with your employer, using the contract or policy wording. For SSP itself, if that does not resolve it, the HMRC Statutory Payment Disputes Team deals with disputes. For contractual sick pay, Acas offers free advice. This page is general information, not legal advice on your contract.
Where this applies. The offset rule and written statement duties described here are Great Britain law. Northern Ireland has its own sick pay and employment legislation, so check the rules there separately.
Common questions
What is company sick pay?
Sick pay your employer gives you on top of the statutory minimum, under your contract or its policy. Acas says it can be called company, contractual or occupational sick pay.
Do employers have to pay company sick pay in the UK?
Company sick pay comes from your contract or your employer's policy, not from statute. What the law requires, if you are eligible, is Statutory Sick Pay as a minimum. Your contract or written statement tells you whether you get more.
Do I get SSP on top of company sick pay?
Not usually as an extra sum. The law treats contractual pay for a day of sickness as going towards the SSP due for that day, and SSP as going towards contractual pay. So your SSP is normally included within your company sick pay, not added on top.
What is discretionary sick pay?
A company scheme where the employer pays better sick pay in some sickness circumstances but not others. Acas says the employer must say so in the written statement or contract, and the policy must not discriminate or treat part-time workers less favourably.
Do I get company sick pay during probation?
Probation does not affect SSP. Whether company sick pay applies during probation depends on your contract, so check the sick pay section of your written statement.
Related
Sources. The legal, pay and clinical facts on this page were checked against these primary sources on 27 October 2026. Rules and rates change, and your employer’s own policy may add to them, so check your contract or HR policy too.
Your scheme wants evidence?
A GMC-registered UK doctor can assess you online, with no appointment, and issue a private sick note if clinically appropriate. Your employer decides whether to accept it.
Request a sick noteAssessed by a GMC-registered UK doctor. Full refund if a note cannot be issued on clinical grounds.