Company Sick Pay Calculator

Occupational sick pay is the contractual sick pay an employer chooses to pay on top of the statutory minimum. It is set out in the employment contract, the staff handbook, or a written sickness policy. By law it can never be less than Statutory Sick Pay (SSP), but most employers pay more — full pay for a short period, then half pay, then SSP, then nothing.

The contractual scheme is the headline figure on the payslip; SSP is the legal floor that the scheme must meet or exceed. If the contractual scheme is silent, the employee is entitled to SSP only — the calculator above shows what that floor is.

Most UK schemes are described as inclusive of SSP: the employer pays the contractual amount and SSP counts towards it. A few schemes pay the contractual amount plus SSP on top. Read the policy wording — 'inclusive' is the more common arrangement.

The table below sets out where the two differ.

Where the contractual scheme pays less than SSP in any week — for example during a waiting period or after the scheme runs out — the employer must top up to SSP.

Enter the employee's annual gross salary and the number of sick days. The calculator returns the 2026/27 SSP weekly rate of £123.25 as the comparison floor. Because every contractual scheme is different (waiting days, percentage of salary, length), it cannot model the contractual amount itself — the contract does that.

To use the figure in practice:

• If the contractual scheme is full pay for N weeks, then SSP, the employer pays full pay first and falls back to £123.25 a week after N weeks.
• If the scheme is half pay after a waiting period, the employer pays the contractual amount, which must never fall below £123.25.
• If there is no contractual scheme, the employee gets £123.25 a week (or 80% of average weekly earnings if that is lower) for up to 28 weeks.

For a full SSP calculation — including the daily rate, qualifying days, and a 28-week cap — use the dedicated Statutory Sick Pay calculator.

A clear sickness policy prevents disputes at exactly the moment the employee is least able to chase paperwork. Five points cover the legal baseline:

• State the SSP rate and the link. Reference the current SSP rate as the floor and confirm the scheme never pays less.
• Set waiting days explicitly. SSP no longer has waiting days; many occupational schemes still do. Write 'SSP is payable from day 1' if you want to mirror the statutory position.
• Define the contractual rate and length. Common patterns are 'full pay for 4 weeks, half pay for 4 weeks, then SSP' or a fixed weeks-at-full-pay allowance rolling over the year.
• Say whether SSP is inclusive or top-up. Most schemes are inclusive — the contractual figure absorbs SSP. Spelling this out avoids double-counting.
• Reference absence management. If you use the Bradford Factor for absence triggers, link to the policy here and make clear that disability-related or pregnancy-related absence is disregarded.

Two numbers in, one number out. Enter the annual gross salary and the days of sickness. The company sick pay calculator returns the 2026/27 SSP floor of £123.25 a week, which is the minimum every contractual scheme must match in any week of paid sickness. Use that figure as the benchmark when setting, reviewing, or challenging a contractual scheme — for the full SSP calculation with daily rates and the 28-week cap, use the Statutory Sick Pay calculator.

Company sick pay can be full pay, half pay, a fixed weekly amount, SSP-only or a staged policy such as four weeks full pay followed by four weeks half pay. To model it properly, separate the statutory SSP floor from the contractual top-up. A good policy states waiting rules, qualifying service, evidence requirements, maximum entitlement, whether SSP is included in full pay, and what happens when an absence links to an earlier absence.

Enhanced sick pay often depends on sickness history in the previous 12 months, while SSP has a 28-week maximum for a period of incapacity and rules for linked periods. Employers should track absence dates, qualifying days, SSP weeks used, company sick pay used and the date entitlement resets. Without that history, the next absence may be overpaid or underpaid.

A practical timeline is: employee reports absence, employer records qualifying days, fit note is requested when required, SSP eligibility is checked, company sick pay policy is applied, payroll processes the payment, and HR reviews return-to-work actions. If SSP is not due or stops, issue SSP1 so the employee can consider benefit support.