What are the changes to Statutory Sick Pay?

Statutory Sick Pay (SSP) has now moved into a new phase, with substantial reforms taking effect from 6 April 2026.

Key features of the updated SSP system

The regulations confirm several important changes that now apply to eligible employees in respect of qualifying sickness absences:

• SSP is payable from the first day of sickness absence. The previous requirement for three waiting days has been removed, meaning employees are no longer required to wait until the fourth qualifying day before statutory sick pay becomes payable.
• The lower earnings limit has been removed. Under the old system, employees needed to earn above a set weekly threshold to qualify. That threshold no longer exists, extending entitlement to employees with low or fluctuating earnings who were previously excluded, provided they otherwise meet the eligibility criteria.
• A revised calculation method is now in place. SSP is capped at the statutory weekly rate, which for the 2026/27 tax year is £123.25. Employees now receive the lower of that amount or 80 percent or their normal weekly earnings, creating a system that reflects individual pay levels while still applying a statutory maximum.

These reforms are intended to widen access to SSP and provide earlier financial support, particularly for those is lower-paid or insecure work.

Transitional rules for absences that began before 6 April

The regulations also include detailed transitional provisions for employees whose sickness absence started shortly before the reforms took effect. Employers will need to consider the position before and after 6 April 2026 and apply the appropriate rules to each period, taking account of the specific transitional provisions that may apply. This creates a mixed approach for some employees during April, requiring careful attention to dates and accurate payroll processing.

Clear records and consistent communication with employees are essential to ensure the correct rules are applied and to avoid confusion during this transitional period.

What employers should focus on now

With the reforms now active, organisations should review their sickness policies, payroll systems and any relevant template employment documents to ensure they are not inconsistent with the new SSP rules.

These changes represent one of the most significant updates to SSP in many years, broadening entitlement and offering earlier financial protection for workers.

If you require guidance on the new SSP rules, or assistance reviewing sickness policies or relevant template employment documents, our Employment team would be pleased to assist.