Statutory Sick Pay (SSP) is changing from April 2026:

what employers need to know

From April 2026, the rules around Statutory Sick Pay (SSP) are being updated. The aim is to improve financial security for employees who are unwell, and to reduce the pressure to return to work too early, especially when illness could be infectious.

These reforms will affect payroll calculations, eligibility, and employer responsibilities, so it’s worth reviewing your processes now.

The key SSP updates from 6 April 2026

1) SSP will apply to every employee

The Lower Earnings Limit (LEL) is being removed, meaning SSP will no longer be restricted based on earnings thresholds.

In practice: employees who previously earned too little to qualify will now be entitled.

2) SSP will start immediately

The current 3-day waiting period is being removed.

SSP will be payable from the first full day of sickness absence, rather than from day 4.

3) SSP will be paid using a new calculation method

Instead of SSP being paid only at a flat weekly amount, it will now be worked out as:

  • 80% of Average Weekly Earnings (AWE)
    or

  • the flat weekly SSP rate of £123.25

Employees will receive whichever figure is lower.

Extra points employers should be aware

Employees newly eligible from April 2026

If an employee is off sick on or after 6 April 2026, and they previously did not qualify because of the earnings limit, they will become entitled from that date.

Transitional protection for employees already receiving SSP

If someone is already off sick and receiving SSP before 6 April 2026, they will be “transitionally protected”.

This means they will receive the new uprated flat weekly rate of £123.25, until one of the following happens:

  • they return to work

  • they use up their SSP entitlement

  • their employment ends

Employer checklist: what you should do next

Review your sickness absence and SSP policies to ensure they reflect:

  • no waiting days

  • updated eligibility rules

  • the new SSP calculation method

  • Update payroll processes and systems so SSP is calculated correctly from 6 April 2026

  • Communicate the changes to employees, especially those who may become newly eligible

Posted - 23 February 2026

Previous
Previous

Looking to reduce your supplier bills?

Next
Next

Christmas Expenses: Answers to the Questions Small Businesses Ask Most