Employment Alert: Major Changes to Statutory Sick Pay from April 2026
What’s happening?
The Government has published the Regulations changing Statutory Sick Pay (SSP) from 6 April 2026.
The key changes are:
- SSP becomes payable from day 1 of sickness absence (removing the 3‑day waiting period).
- The lower earnings limit is removed, meaning all employees, regardless of income, will qualify for SSP if they meet the other eligibility requirements.
- A new earnings‑linked calculation: SSP will be the lower of the statutory weekly rate (£123.25 for 2026/27) or 80% of the employee’s normal weekly earnings.
Why is this important?
These changes represent one of the most substantial reforms to SSP in years and will:
- Increase employer costs, as SSP will be payable earlier and to a wider group of employees (including those previously below the earnings threshold).
- Impact payroll processing, as employers will need systems capable of calculating 80% of normal weekly earnings and ensuring payments remain compliant with the new statutory framework.
- Potentially increase short-term absence rates, given the removal of the waiting period may reduce deterrence for very short absences.
Employers who outsource payroll or operate multiple systems (or have large part‑time or low‑hours workforces) may feel these changes most strongly.
What should you do?
1. Review and update your sickness and absence policies
Ensure internal policies, handbooks, and manager guidance reflect day‑one SSP entitlement and the new earnings‑linked calculation.
2. Prepare payroll and HR systems
Work with payroll providers to confirm:
- the 80% earnings calculation is implemented correctly, and
- waiting days are removed from 6 April 2026.
3. Train managers and HR teams
Frontline managers should understand:
- that SSP is now payable earlier,
- that more employees will now qualify, and
- how to handle any increases in short-term absence.
4. Communicate with employees
We recommend issuing a short employee update explaining the new entitlements, to pre‑empt queries and ensure consistency across your workforce.
5. Seek advice for complex cases
If you are dealing with overlapping absences spanning April 2026 or have employees on variable hours or complex pay arrangements, advice may be helpful to ensure compliance.
For support or tailored advice, please contact the Trethowans Employment Team: [email protected], who will put you in touch with a member of the team.
