Glossary
Statutory sick pay
Statutory sick pay is the minimum sick pay an employer must legally provide to an employee who is off work due to illness, set by each country's government.
Reviewed by Teamed's in-house employment-law team·Last updated 24 June 2026
What is Statutory sick pay?
Statutory sick pay (SSP) is the floor of pay your employees are entitled to when they cannot work because of illness or injury. Every country sets its own rules: the amount, how long it lasts, who funds it, and which employees qualify. Some countries require employers to pay a percentage of salary directly, as Germany and the Netherlands do. Others fix a flat weekly rate, as the UK does. In some markets, the cost shifts to a state insurer after a set period; in others, the employer bears it throughout. When you hire someone internationally, through your own entity or via an employer of record arrangement, you take on these obligations from day one. Getting them wrong can mean back-pay claims, penalties, or disputes at termination. Rules also interact with payroll cycles, collective bargaining agreements, and any enhanced sick-pay you offer on top of the legal minimum.
How does statutory sick pay differ by country?
Each country sets its own rules independently. The UK pays a flat weekly rate from day one of absence. Germany requires employers to pay full salary for six weeks. The Netherlands requires at least 70% of wages for up to two years. There is no single global standard.
Who actually pays the sick pay, the employer or the state?
It depends on the country and how long the absence lasts. In Germany, employers pay full salary for the first six weeks, after which the statutory health insurer takes over. In the UK and the Netherlands, employers pay directly throughout, though they may reclaim some costs in certain circumstances.
Can you offer more than the statutory minimum?
Yes, and many employers do. Enhanced sick pay, sometimes called company sick pay, sits on top of the legal floor. It can be set out in an employment contract or a collective bargaining agreement. You cannot legally pay less than the statutory minimum, but you can always pay more.
What happens if you get sick pay wrong?
Underpaying statutory sick pay can expose you to back-pay claims, regulatory penalties, and reputational risk. In the Netherlands, errors in the two-year continued-pay obligation are a common trigger for employment disputes. Correct payroll setup from day one avoids most problems.
Key facts
- UK SSP weekly rate (2026/27)
- £123.25 per weekPaid from the first day of absence since 6 April 2026, when the three-day waiting period was removed by the Employment Rights Act 2025. Capped at £123.25 or 80% of average weekly earnings, whichever is lower.Source: GOV.UK: Rates and thresholds for employers 2026 to 2027· verified 2026-06-24
- Germany: employer sick pay period
- 100% of salary for 6 weeksUnder the Entgeltfortzahlungsgesetz, employers must pay full gross salary for the first 42 calendar days of sickness. After that, the statutory health insurer pays Krankengeld at 70% of gross earnings.Source: Settle in Berlin: Sick leave in Germany guide· verified 2026-06-24
- Netherlands: continued wage obligation
- At least 70% of wages for up to 2 yearsEmployers must pay at least 70% of last-earned wages during both years of sickness. In year one, this must not fall below the legal minimum wage. Many collective agreements top this up to 100% in year one.Source: Business.gov.nl: Sick pay· verified 2026-06-24
Frequently asked questions
Is statutory sick pay the same everywhere in Europe?
No. Each country sets its own rules. The UK has a flat weekly rate. Germany requires full salary for six weeks. The Netherlands requires 70% of wages for two years. Always check the specific country rules before hiring.Does statutory sick pay apply from the first day off sick?
It depends on the country. In the UK, from April 2026, SSP is paid from day one of absence. Previously there was a three-day waiting period. Germany and the Netherlands both apply their obligations from the first day, though Germany has a four-week employment minimum before the obligation kicks in.Do you still have to pay sick pay if an employee is on a short-term or fixed-term contract?
In most countries, yes. Statutory sick pay obligations usually apply regardless of contract type, including fixed-term contracts. In the Netherlands this applies to permanent, fixed-term, and on-call workers alike. Always check local rules for your specific contract type.What is the difference between statutory sick pay and occupational sick pay?
Statutory sick pay is the legal minimum set by government. Occupational sick pay, sometimes called enhanced sick pay or company sick pay, is anything your organisation offers on top of that. It can be included in a contract or collective agreement, but it can never go below the statutory floor.
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See the full cost of employing someone in a new countryLast verified 2026-06-24