SSP is changing – Are you ready?

From 6 April 2026, some important changes to Statutory Sick Pay (SSP) are coming into force and they’re likely to have a noticeable impact on employers. In simple terms, SSP is becoming more accessible and more immediate.

No more waiting days
The most significant shift is that SSP will be payable from day one of sickness absence. The old three “waiting days” are being removed, which means employees who are off sick will be entitled to payment from their first qualifying day. For employers, that means adjusting not only payroll systems but also expectations around short-term absence.

Lower Earnings Limit to go
Another major change is the removal of the Lower Earnings Limit. Previously, employees had to earn above a certain threshold to qualify for SSP. From 6 April 2026, that barrier disappears. Lower-paid and part-time workers who were not previously eligible will now be entitled to sick pay. This widens the net considerably and means more employees will fall within scope.

A new calculation
The way SSP is calculated is also being updated. Instead of simply paying the flat weekly statutory rate, employers will need to calculate 80% of an employee’s average weekly earnings, capped at the statutory maximum (which will be £123.25 per week from April 2026). For some employees, this means pay more closely reflects their normal earnings. For employers, it adds another layer of payroll calculation to get right.

So, what should employers be doing now?
First and foremost, payroll systems need to be reviewed. Day-one payment, the removal of earnings thresholds, and the new 80% calculation all mean configuration changes. It’s important to test systems in advance of April to avoid underpayments or errors that could lead to disputes.

Policies and handbooks should also be updated. Any reference to waiting days or outdated eligibility rules will need to be removed. This is a good opportunity to make sure sickness reporting procedures are clear, especially for businesses with irregular or shift-based workers where “qualifying days” can be more complex.

Managers will need guidance too. With SSP starting immediately, short-term absences may increase. That makes consistent absence management more important than ever. Return-to-work conversations should remain supportive but structured, ensuring managers understand patterns, check on wellbeing, and reinforce expectations around attendance.

Communication with employees is equally important. Clear, simple explanations about how SSP will be calculated and when it applies can prevent confusion later. If employees understand the process, they are less likely to challenge payroll outcomes.

Finally, these changes are a reminder that sickness absence management should not be purely administrative. With more employees eligible from day one, employers may see higher short-term costs. However, investing in wellbeing initiatives, early intervention, and supportive return-to-work practices can reduce longer-term absence and improve productivity.

While the reforms will require preparation, they also present an opportunity for organisations to review how they support employee health and manage absence in a fair, consistent and legally compliant way.

Please get in touch if you have any questions regarding the issues discussed in this article.
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