Important Update: Statutory Sick Pay Changes from April 2026
From 6 April 2026, changes to Statutory Sick Pay (SSP) will come into effect.
➡️ SSP will be payable from Day 1 of sickness absence, removing the current three waiting days.
➡️ The weekly SSP amount will be the lower of:
• £123.25 per week (increasing from £118.75 in 2025/26), or
• 80% of the employee’s Average Weekly Earnings (AWE) based on the 8 weeks’ earnings prior to sickness.
These changes mean employers will need to ensure accurate sickness records and employee work patterns are available for payroll processing.
What employers should review now:
• Recording accurate sickness dates
• Confirming whether Company Sick Pay policies apply
• Ensuring employee work patterns are documented
• Agreeing how zero-hours workers’ qualifying days will be determined
Preparing early will help ensure payroll remains accurate and compliant when the new rules take effect.
In More Detail
These changes will happen on 6 April 2026:
- statutory sick pay (SSP) will be paid from the first day of illness, instead of the fourth day
- the lower earnings limit will be removed – currently, workers must earn a minimum amount to be eligible for statutory sick pay
What this means is that Employers need to log each sick day and pay the SSP per pay period because of the linking period rules. With SSP applying from day one, absences separated by 8 weeks (56 days) or fewer link, thus preserving the 28-week maximum entitlement.
Periods of sickness will now link even if employees only take one or two single days of sick leave up to 8 weeks (56 days) apart. Employers will need to inform payroll processors if the sick day(s) are paid under their Company Sick Pay policy or SSP only. If they are paid, they will need to off-set one day's SSP against this.
Rates of SSP are also changing so the new calculations will be as follows.
SSP calculation from 6th April 2026:
The payment rate of SSP will be the lower of:
- STANDARD WEEKLY RATE: The standard flat rate of SSP will increase to £123.25 per week (up from £118.75 in the 2025/26 tax year); AND
- NEW LOWER RATE: 80% of the employee's Average Weekly Earnings (AWE), based on 8 weeks earnings prior to sickness.
Example: - Employee earns £300/week @ 80% = £240 → SSP = £123.25 (flat rate is lower).
- Employee earns £150/week @ 80% = £108 → SSP = £120.00 (80% rate is lower).
If you would like guidance on how these changes may affect your payroll, our team would be happy to help.