Sick Pay for Umbrella Company Contractors
How Statutory Sick Pay works for umbrella workers, what the 2026/27 rate is, and the income gap most contractors face when ill.
Last updated: April 2026
SSP: The Basics for Umbrella Workers
As an umbrella company employee, you are entitled to Statutory Sick Pay (SSP) — the legal minimum sick pay that all UK employers must provide. Unlike a permanent employee who may receive enhanced sick pay, most umbrella companies pay only the statutory minimum.
SSP in 2026/27 is £116.75 per week. For a contractor earning £500/day (£2,500/week), this represents a drop of over 95% in weekly income. This gap is the primary reason financial planning — including Income Protection insurance — is important for contractors.
| Condition | Detail |
|---|---|
| 2026/27 SSP Rate | £116.75/week |
| Qualifying earnings threshold | Average earnings ≥ £123/week |
| Waiting days (unpaid) | First 3 days — SSP from day 4 |
| Maximum duration | 28 weeks per period of incapacity |
| Who pays | Your umbrella company (employer) |
| Tax treatment | SSP is taxable income — subject to PAYE |
The Income Gap
The table below shows the stark difference between normal contractor earnings and SSP:
| Day Rate | Normal Weekly Gross | SSP Rate | Weekly Shortfall |
|---|---|---|---|
| £300/day | £1,500 | £116.75 | −£1383.25/wk |
| £400/day | £2,000 | £116.75 | −£1883.25/wk |
| £500/day | £2,500 | £116.75 | −£2383.25/wk |
| £600/day | £3,000 | £116.75 | −£2883.25/wk |
| £700/day | £3,500 | £116.75 | −£3383.25/wk |
Protect Your Income
Most contractors rely on personal savings or Income Protection insurance to bridge the gap between SSP and their normal earnings. Income Protection policies can pay 50–70% of your pre-illness income after a deferral period (typically 4–52 weeks). Speak to a financial adviser who specialises in contractor cover.
How to Claim SSP
To claim SSP from your umbrella company:
- Notify your umbrella company and your agency/end client that you are sick, as early as possible
- Follow your umbrella's notification procedure (usually email or online portal)
- Provide a fit note (GP sick note) for absences of more than 7 consecutive days
- For absences of 7 days or fewer, you can self-certify without a doctor's note
2026/27 SSP Rate
£116.75
per week from day 4 of illness