Holiday Pay vs Sick Pay

Holiday pay and sick pay are among the most misunderstood rights at work, partly because both changed in recent years. Holiday builds up from your first day and must be paid out if you leave with days unused. Statutory Sick Pay became a day-one right on 6 April 2026, with the old waiting days and the lower earnings condition removed. The two also interact in ways that catch people out during long absences. This comparison sets out the statutory floor and what your contract may add on top.

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Feature	Holiday Pay	Sick Pay
Statutory entitlement	28 days (5.6 weeks) per year including bank holidays	Statutory Sick Pay (SSP) of £123.25/week (or 80% of average weekly earnings if lower), payable from day one since April 2026
Who qualifies	All workers from day one	Employees earning at least £123/week — not self-employed
How it accrues	Accrues from first day of employment throughout the year	No accrual — applies per period of sickness
Maximum duration	28 days per year (more if employer enhances)	SSP for up to 28 weeks; enhanced pay depends on employer policy
Can you take holiday while sick	Yes — holiday accrues during sick leave and can be taken instead	Sick leave and holiday can run concurrently if agreed
Payment on leaving	Any unused statutory holiday must be paid out on termination	SSP does not carry over — no payment on leaving
Day one entitlement	Yes — accrues from first day of employment	Yes — SSP is payable from the first day of sickness since 6 April 2026
Tax and NI treatment	Taxable as employment income; subject to Class 1 NI	SSP taxable as employment income; subject to Class 1 NI

Many employers offer enhanced sick pay and more than 28 days holiday. Always check your contract. If in dispute, contact Acas.

Where these two rights meet

Take the current position on sick pay first, because a lot of older advice is out of date. Since 6 April 2026, Statutory Sick Pay is a day-one right: the three waiting days were abolished, and the lower earnings limit condition was removed entirely, so lower-paid employees who were previously excluded now qualify. SSP is paid at the flat weekly rate or 80% of your average weekly earnings, whichever is lower. Holiday works differently — all workers accrue 5.6 weeks a year from the first day, and unused statutory holiday must be paid on leaving.

Off sick long term? Your holiday keeps building up throughout, because you remain employed. Ask about carrying it over rather than losing it.
Fell ill during booked leave? You can usually ask for those days to be reclassified as sickness and the holiday returned to you, subject to your employer's notification rules.
On irregular hours or a zero-hours contract? You still accrue holiday. The calculation is based on hours worked rather than a fixed allowance.

The mistake to avoid is assuming the statutory minimum is all there is. Many contracts give enhanced sick pay for a set period and more than the statutory holiday, and those contractual terms are enforceable. Read your contract and staff handbook before accepting what you are told verbally.

If pay is short and the employer will not fix it, keep your payslips and rota records and speak to Acas. Deductions from wages have their own tribunal route with a short time limit.

Frequently asked questions

Can my employer make me take holiday while I am off sick?

Employers can direct when holiday is taken by giving notice of at least twice the length of the leave, but forcing it onto a period of certified sickness is problematic and often disputed. The purpose of holiday is rest and recuperation, which sick leave does not provide. In practice most employers agree to carry the days over instead. If you would rather take some holiday during a long absence — because holiday pay is higher than sick pay — you can usually ask, and many employers agree.

What happens to my unused holiday if I leave the job?

Any statutory holiday you have accrued but not taken must be paid to you in your final pay. That applies however the employment ends, including dismissal for misconduct. Contractual holiday above the statutory minimum is governed by your contract, which may or may not require a payout. If you have taken more holiday than you accrued, your employer can only recover it if the contract expressly allows the deduction. Check your final payslip against your own record of days taken.

Do I need a doctor's note to get sick pay?

Not for the first week. For absences of seven calendar days or fewer you self-certify, usually on your employer's own form. Beyond that your employer can ask for a fit note from a GP or other healthcare professional. Fit notes often recommend adjustments — reduced hours, altered duties, a phased return — rather than saying you cannot work at all, and an employer should consider those seriously, particularly where a disability is involved.

What if my employer refuses to pay SSP?

Ask for the refusal in writing, with the reason. Employers must give a written explanation using form SSP1 where SSP is not payable, and that form also lets you claim Employment and Support Allowance instead. If you believe SSP is due and it is being withheld, you can ask HMRC's statutory payments disputes team to make a formal decision. Keep your fit notes, self-certification forms and any messages about the absence, and raise it promptly rather than at the end of the sickness.

Related guides

Holiday Pay Explained

Almost all UK workers are legally entitled to paid annual leave under the Working Time Regulations 1998. Understanding exactly how much holiday you are owed and how your pay should be calculated can save you from losing money you are rightfully owed.

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Statutory Sick Pay Basics

If you are too ill to work, Statutory Sick Pay (SSP) provides a basic income while you recover. Knowing your entitlements — and your employer's obligations — helps you avoid losing money during a period of illness.

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Maternity, Paternity and Shared Parental Leave

New parents in the UK have important statutory rights to take time off work and receive pay during leave. Understanding maternity, paternity, and shared parental leave helps you plan your family and protect your employment.

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Flexible Working Requests

The right to request flexible working was significantly strengthened in April 2024. Employees can now ask from their first day and employers must handle requests more fairly than before. This guide explains the new rules.

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Disclaimer

The information on this page was correct at the time of writing. Amounts, thresholds, and rules may change. Always check the latest official guidance.