The most significant changes to Statutory Sick Pay (SSP) in a generation came into force on 6 April 2026. Under the Employment Rights Act 2025, the familiar three-day waiting period has gone, and the earnings threshold that excluded many part-time and low-paid workers has been removed altogether. For UK employers, the clock is already ticking.
This guide explains what has changed, who is affected, and the practical steps your business needs to take.
What has changed from 6 April 2026?
Three changes took effect simultaneously:
1. SSP is now payable from day one
Previously, employers were not required to pay SSP for the first three qualifying days of sickness absence (known as ‘waiting days’). That rule no longer applies. SSP must now be paid from the very first qualifying day of absence, regardless of how long the illness lasts.
2. The Lower Earnings Limit threshold has been removed
Under the old rules, employees had to earn at least £125 per week (the Lower Earnings Limit) to qualify for SSP. That threshold has now been abolished. All employees and workers qualify for SSP, regardless of their earnings. This brings a significant new group of workers, particularly part-time, seasonal, and zero-hours employees, within scope for the first time.
3. A new SSP rate formula for lower-paid workers
The flat weekly SSP rate has risen to £123.25. However, for lower-paid workers, SSP is now calculated as the higher of the flat rate or 80% of average weekly earnings, whichever is lower. In practice, this means lower-paid workers receive a meaningful sick pay amount proportionate to their normal earnings, rather than defaulting to the flat rate.
Who is most affected?
The reforms will be felt most sharply by employers who rely on:
- Part-time workers who previously fell below the earnings threshold
- Zero-hours and casual workers
- Seasonal or temporary staff
- Retail, hospitality, and care sector employers with high volumes of lower-paid staff
- SMEs with limited payroll resource to absorb increased costs
For many businesses, the combination of day-one SSP and broader eligibility will result in a meaningful increase in payroll costs. But the compliance risk, failing to pay correctly from the outset, carries its own exposure, including back-pay obligations and potential tribunal claims.
Six things employers need to do now
1. Update your payroll software
Your payroll system must now calculate SSP from day one and remove any earnings threshold test. Speak to your payroll provider if you are unsure whether your system has been updated to reflect the new rules.
2. Review your absence recording processes
Accurate recording of sickness start dates and durations is now more important than ever. With SSP payable from day one, even short absences will trigger entitlement. Ensure your HR and line management teams are capturing sickness absence correctly and consistently.
3. Audit your contractual sick pay schemes
Many employers operate contractual sick pay schemes that sit alongside SSP, either topping it up or offering enhanced terms. These schemes need to be reviewed carefully. Where contractual sick pay currently excludes the first three days (mirroring the old SSP rules), it may now fall below the statutory minimum. Any contractual entitlement that is less generous than the new SSP rules must be amended.
4. Update your employment contracts or inform staff of this change by letter
Where employment contracts refer specifically to the three-day waiting period or the earnings threshold, these clauses should be updated. Ambiguity between contractual and statutory entitlements is a common source of disputes and, in some cases, tribunal claims.
5. Refresh your HR policies
Sickness absence policies, return-to-work interview procedures, and fit note processes should all be reviewed in light of the new rules. Employees should be clearly informed of the updated entitlements, particularly those who previously fell outside SSP eligibility.
6. Maintain robust time and attendance records
If an SSP payment is ever challenged, you will need to substantiate it. Good time-and-attendance records, accurately maintained and readily accessible, are your first line of defence. Payroll errors on SSP can be costly, both in back-pay and in the administrative penalties that can follow.
Frequently asked questions
1. Does SSP apply from day one for all employees?
Yes. From 6 April 2026, SSP is payable from the first qualifying day of sickness absence. The three-day waiting period that previously applied has been abolished.
2. What is the new SSP rate for 2026?
The flat weekly SSP rate is £123.25 from 6 April 2026. For lower-paid workers, SSP is calculated as the higher of £123.25 or 80% of their average weekly earnings, whichever figure is lower.
3. Do part-time workers qualify for SSP under the new rules?
Yes. The removal of the Lower Earnings Limit means that all employees and workers qualify for SSP, regardless of how much they earn or how many hours they work.
4. What happens if I get SSP wrong?
Failing to pay SSP correctly exposes employers to back-pay obligations, HMRC penalties, and the risk of employment tribunal claims, particularly where ambiguity arises between contractual and statutory entitlements. Getting the basics right now is considerably cheaper than resolving a dispute later.
How Paris Smith can help
Our employment team has been advising businesses on the Employment Rights Act 2025 since it received Royal Assent in December 2025. We can help you review your contracts, update your policies, and ensure you are fully compliant with the new SSP rules.
If you would like to discuss how the SSP reforms affect your business, please contact a member of our employment team.
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