Published: June 2026 | Fact-Checked & Audited By: David Vance, CTA FCA (Chartered Tax Advisor & Accountant)
This guide is fully updated for the 2026/27 HMRC tax year. All calculations and tax rules have been audited against official UK legislation.
Your payslip can vary significantly during months when you take time off, whether due to annual leave, illness, or parental leave. Statutory policies dictate how payments for sick leave and maternity are calculated, and these rates are often lower than your regular base pay. Understanding how these statutory payments are structured is essential for verifying your payslip during absences (easily check how variables affect your net income with our Payslip Estimator).
Statutory Sick Pay (SSP) Rules
If you are unable to work due to illness, you may be entitled to Statutory Sick Pay (SSP). SSP is paid by your employer for up to 28 weeks. However, SSP does not start immediately. It is subject to “waiting days”—meaning you are not paid SSP for the first 3 days of your absence unless you have received it recently.
Furthermore, the statutory rate of SSP is a fixed weekly amount (£116.75 for the 2026/27 tax year), which is typically much lower than standard salaries. If your employer offers a company sick pay scheme, they will top up this statutory minimum, which will be detailed under your payslip earnings.
Comparison Table: Statutory Absence Rates 2026/27
| Absence Type | Statutory Payment Period | Rate of Pay (2026/27) |
|---|---|---|
| Statutory Sick Pay (SSP) | Up to 28 weeks | £116.75 per week (after 3 waiting days) |
| Statutory Maternity Pay (SMP) | First 6 weeks | 90% of average weekly earnings |
| Statutory Maternity Pay (SMP) | Next 33 weeks | £184.03 per week or 90% of earnings (whichever is lower) |
| Statutory Paternity Pay (SPP) | 1 or 2 weeks | £184.03 per week or 90% of earnings (whichever is lower) |
Holiday Pay Calculations for Hourly Workers
For salaried employees, holiday pay is simple: you continue to receive your normal monthly salary while on leave. However, for workers with irregular hours or hourly pay structures, holiday pay must be calculated based on your average earnings. Under UK law, employers must look back at your average weekly earnings over a 52-week reference period to calculate your holiday pay rate, ensuring you are not financially penalized for taking annual leave.
Frequently Asked Questions
Q: What is the Statutory Sick Pay (SSP) rate for 2026/27?
The Statutory Sick Pay (SSP) rate for the 2026/27 tax year is £116.75 per week. It is paid by your employer for up to 28 weeks of sickness absence.
Q: How do waiting days affect sick pay on my payslip?
You do not receive Statutory Sick Pay (SSP) for the first 3 days of sickness. These are called waiting days, and SSP deductions are only bypassed if your company offers occupational sick pay.
Q: How is holiday pay calculated for hourly workers?
Holiday pay is calculated based on your average weekly earnings over the previous 52 weeks. Any weeks where you did not work or earn money are excluded, going back up to 104 weeks to find 52 paid weeks.
Q: What is the Statutory Maternity Pay (SMP) rate for 2026/27?
For the first 6 weeks, SMP is paid at 90% of your average weekly earnings. For the next 33 weeks, it is paid at £184.03 per week or 90% of earnings, whichever is lower.
Q: Is maternity pay taxable on a payslip?
Yes, Statutory Maternity Pay (SMP) is treated as taxable earnings. It is subject to standard income tax and National Insurance deductions through the PAYE system.
Q: What is Statutory Paternity Pay (SPP) for 2026/27?
The statutory rate for Paternity Pay is £184.03 per week, or 90% of average earnings, whichever is lower. Eligible fathers can choose to take either 1 or 2 weeks of paid leave.
Q: Can I get holiday pay while on sick leave?
Yes, you continue to build up statutory holiday entitlement while on sick leave. You can choose to take annual leave during a period of sickness to receive full holiday pay instead of SSP.
Q: What does “SMP” stand for on my payslip?
SMP stands for Statutory Maternity Pay. This is the legal minimum amount your employer must pay you while you are away from work having a baby.
Q: How does unpaid leave show on a payslip?
Unpaid leave is usually shown as a deduction from your normal gross monthly salary. It is calculated based on the number of working days missed, reducing your taxable pay for that month.
Q: Do I accrue holiday while on maternity leave?
Yes, you continue to accrue all statutory and contractual annual leave during maternity leave. This leave can be added to the beginning or end of your maternity absence period.