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Significant changes to Statutory Sick Pay (SSP) are coming into effect on 6 April 2026. These changes will affect how SSP is calculated and who is eligible to receive it – it is important that employers are prepared well in advance.
Below, we have set out a summary of what is changing, along with practical examples to help illustrate what this means for your employees.
What is changing?
The new rules introduce two key reforms that represent a significant expansion of SSP entitlement:
SSP will be payable from day one of sickness absence (removing the current three-day waiting period)
The earnings threshold will be removed, meaning employees will qualify for SSP regardless of how much they earn
| Current Rules (before 6 April 2026) | New Rules (from 6 April 2026) | |
Qualifying earnings | Must earn above the Lower Earnings Limit (LEL) | No minimum earnings required | |
Weekly rate | £118.75 per week (flat rate) | £123.25 per week or 80% of average weekly earnings – whichever is lower | |
Waiting days | 3 waiting days – SSP begins on day 4 | No waiting days – SSP begins from day 1 |
Here are some scenarios that illustrate how the new rules will work in practice.
Example 1: Higher earner: James
James earns £250 per week. Under the new rules, 80% of his average weekly earnings would be £200, which is above the flat rate of £123.25. Because SSP is the lower of the two figures, James would receive the flat rate of £123.25 per week.
Example 2: Earner above LEL: Sarah
Sarah earns £150 per week, which is above the Lower Earnings Limit. Under the old system, she would have received the flat rate of £118.75. Under the new rules, 80% of her earnings is £120 – which is lower than £123.25 – so she would receive £120 per week in SSP.
Example 3: Earner below LEL: Emily
Emily earns £100 per week, which currently falls below the Lower Earnings Limit, meaning she would not qualify for SSP at all. From 6 April 2026, there is no earnings threshold, so Emily would receive 80% of her average weekly earnings - £80 per week in SSP.
Example 4: Transitional case (above LEL): David
David earns £130 per week and was already off sick before the end of the 2025/26 tax year. In the old tax year, he was eligible for SSP at £118.75 per week. In the new tax year, 80% of his earnings would be £104 but because he was already receiving the full flat rate when the change comes in, transitional rules mean he will continue to receive the new full rate of £123.25 for that period of sickness only. Once that sickness absence ends, the standard new rules will apply.
Example 5: Transitional case (below LEL): Rachel
Rachel earns £100 per week and was off sick before the end of the 2025/26 tax year. Because her earnings were below the LEL, she received no SSP in the old tax year. However, from day one of the new tax year (6 April 2026), she will become entitled to SSP at 80% of her average weekly earnings – £80 per week.
What do you need to do?
We recommend that employers take the following steps ahead of 6 April 2026:
Review your payroll systems to ensure they can calculate SSP based on 80% of average weekly earnings
Update any sickness absence policies that reference the three waiting days or the current flat rate
Consider how transitional cases – employees already off sick at the changeover date – will be handled
Need help preparing for these changes?
If you have any questions about how the SSP changes will affect your business, or any other payroll questions, get in touch with our team.