From 6 April 2026, the UK’s Statutory Sick Pay (SSP) rules are changing as part of the Employment Rights Act. These are some of the most significant updates to SSP in years and will have a direct impact on payroll processing, eligibility and employer costs.
Here’s a simple overview of what’s changing and what it means for your business.
The Key SSP Changes
🔑 SSP becomes a “day one” entitlement
Currently, SSP is only paid from the fourth qualifying day of sickness, with the first three days classed as unpaid “waiting days”.
From April 2026, waiting days are abolished, meaning SSP is payable from the first qualifying day of absence.
This means even short absences of 1–3 days will now attract SSP.
🔑 The Lower Earnings Limit is being removed
At the moment, employees must earn at least the Lower Earnings Limit (LEL) to qualify for SSP.
From April 2026, all eligible employees will qualify regardless of earnings, including many part-time and low-paid workers who were previously excluded.
This change is expected to bring around 1.3 million additional workers into SSP entitlement.
🔑 SSP will be linked to earnings (for some employees)
From April 2026, SSP will be calculated slightly differently for lower-paid staff.
SSP will be paid at whichever is lower:
- 80% of their average weekly earnings, or
- the standard SSP weekly rate (£123.25 for 2026/27)
In practice, this means:
- Employees who normally earn more than the SSP rate will continue to receive the standard weekly SSP amount.
- Employees with lower weekly earnings may receive 80% of their average pay, which could be less than the standard SSP rate.
This introduces a more earnings-related calculation, which will be particularly relevant for lower-paid staff.
What This Means for Employers
These changes will affect both payroll administration and absence costs:
- More employees eligible for SSP
- SSP payable for shorter absences
- New calculation method for some low earners
- Policy and contract updates may be required to remove references to waiting days or earnings thresholds
You may also see an increase in SSP costs, particularly in sectors with part-time, casual or high-turnover staff.
Payroll Considerations
From a payroll perspective, employers will need to:
✔ Update SSP settings in payroll software
✔ Review average weekly earnings calculations for low-paid staff
✔ Ensure correct payment from day one of absence
✔ Apply the new rate and eligibility rules from 6 April 2026
✔ Handle transitional cases where sickness started before April but continues after
Absences that begin before 6 April 2026 will still follow the old rules, while new absences from that date must use the new system.
Disclaimer: This article is for general information only and does not constitute legal or payroll advice. SSP legislation and HMRC guidance may change and employers should seek professional advice before taking action.
For the most up-to-date official guidance, please refer to:
- GOV.UK – Statutory Sick Pay (SSP): https://www.gov.uk/statutory-sick-pay
- GOV.UK – Employer rates and thresholds: https://www.gov.uk/guidance/rates-and-thresholds-for-employers
- HMRC Employer Bulletin: https://www.gov.uk/government/collections/employer-bulletins
- ACAS – Statutory Sick Pay and employee rights: https://www.acas.org.uk/statutory-sick-pay