Statutory sick pay changes from April 2026
From 6 April 2026, significant changes to Statutory Sick Pay (SSP) will come into force. The reforms modernise the SSP framework and widen eligibility, meaning employers should review payroll processes and policies early to ensure a smooth, compliant transition. This short guide explains what’s changing and what it means in practice.
What's Changing?
SSP from day one of sickness
Currently, SSP usually starts from the fourth qualifying day of absence. From April 2026, the waiting period will be removed, and SSP will be payable from an employee’s first full day of sickness absence.
Removal of the earnings threshold
At present, employees earning below the Lower Earnings Limit (£125 per week or £542 per month for 2025/26) are not entitled to SSP. From April 2026, this threshold will be abolished, extending SSP eligibility to lower-paid, part-time and zero-hours workers. As a result, more employees are likely to qualify for SSP under the current rules.
A revised method of calculating SSP
SSP is currently paid at a flat weekly rate set by the government. Under the new system, SSP will be paid at the lower of:
What this means in practice
For employees, the reforms provide earlier access to sick pay and broader eligibility, offering greater financial stability during periods of ill health.
For employers, the focus will be on preparation and implementation. In particular, businesses should:
Where an employee is already off sick on 6 April 2026, transitional protections apply to prevent SSP being reduced mid-absence, helping ensure continuity during the changeover.
Looking ahead
These reforms form part of the wider Employment Rights Act 2025, aimed at improving workforce support while promoting good employment practices. While the changes will require careful planning, they also offer employers an opportunity to align statutory obligations with broader wellbeing and attendance strategies.
If you would like assistance reviewing your contracts, policies or payroll processes ahead of 6 April 2026, we can provide clear, practical advice to help you stay compliant and confident.
What's Changing?
SSP from day one of sickness
Currently, SSP usually starts from the fourth qualifying day of absence. From April 2026, the waiting period will be removed, and SSP will be payable from an employee’s first full day of sickness absence.
Removal of the earnings threshold
At present, employees earning below the Lower Earnings Limit (£125 per week or £542 per month for 2025/26) are not entitled to SSP. From April 2026, this threshold will be abolished, extending SSP eligibility to lower-paid, part-time and zero-hours workers. As a result, more employees are likely to qualify for SSP under the current rules.
A revised method of calculating SSP
SSP is currently paid at a flat weekly rate set by the government. Under the new system, SSP will be paid at the lower of:
- 80% of the employee’s average weekly earnings, or
- the statutory SSP flat rate for that year (£118.75 per week until 5 April for 2025; rising to £123.25 thereafter).
What this means in practice
For employees, the reforms provide earlier access to sick pay and broader eligibility, offering greater financial stability during periods of ill health.
For employers, the focus will be on preparation and implementation. In particular, businesses should:
- Update payroll systems to reflect SSP being payable from day one.
- Review contracts, policies and handbooks for references to waiting days or earnings thresholds.
- Ensure payroll and HR teams understand the new eligibility rules and calculation method.
Where an employee is already off sick on 6 April 2026, transitional protections apply to prevent SSP being reduced mid-absence, helping ensure continuity during the changeover.
Looking ahead
These reforms form part of the wider Employment Rights Act 2025, aimed at improving workforce support while promoting good employment practices. While the changes will require careful planning, they also offer employers an opportunity to align statutory obligations with broader wellbeing and attendance strategies.
If you would like assistance reviewing your contracts, policies or payroll processes ahead of 6 April 2026, we can provide clear, practical advice to help you stay compliant and confident.
This material is published for the information of clients. It provides only an overview of the regulations in force at the date thereof, and are subject to change without notice. No action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material can be accepted by the authors or MIB or any of its associated businesses.