Significant reforms to Statutory Sick Pay (SSP) are scheduled for April 2026, marking the most substantial update to the UK’s sick pay system in many years. These changes will affect all employers and employees, so early preparation is essential.
Statutory Sick Pay (SSP) from Day One: Removal of Waiting Days
Under the current rules, SSP is only paid from the fourth qualifying day of sickness.
From April 2026, waiting days will be removed and SSP will be payable from the first day of sickness absence.
This change is designed to give employees immediate access to statutory sick pay, including those with short-term illnesses that previously fell within the unpaid period.
What This Means for Employers
- Payroll systems must be updated to administer day-one SSP.
- HR teams need clear processes for recording and approving first-day sickness absences.
Statutory Sick Pay (SSP) Eligibility for All Employees
At present, employees must earn at least the Lower Earnings Limit (LEL) to qualify for SSP.
From April 2026:
The LEL requirement will be removed, meaning all employees will qualify for SSP regardless of their earnings.
This will extend SSP to workers who are currently excluded.
Employees Newly Covered Will Include:
- Part-time and casual staff
- Zero-hours workers
- Seasonal or variable-hours employees
- Apprentices and trainees
Employer Considerations
This expansion of SSP eligibility will increase the number of staff entitled to sick pay, particularly in sectors with flexible or low-hours roles, so employers should review staffing structures and forecast costs for a larger proportion of employees now qualifying for SSP payments.
Statutory Sick Pay (SSP) Payment Method: What Has Been Set Out
The government has outlined that SSP will be calculated using:
The lower of 80% of the employee’s average weekly earnings, or the standard SSP weekly rate.
This introduces a variable element based on actual earnings rather than a flat rate alone.
Payroll teams will need to ensure systems are able to calculate SSP using this updated method.
Employer Preparation for April 2026
These reforms introduce new statutory requirements, and employers should prepare early to ensure compliance.
- Update Payroll and HR Systems
Systems must be configured to:
- Pay SSP from day-one
- Apply the revised calculation method – 80% of average weekly earnings
- Remove LEL-based eligibility checks
- Review Employment Contracts and Staff Handbooks
All references to waiting days and the earnings threshold will need updating so documentation matches the new legal framework.
- Train HR and Line Managers
Staff responsible for authorising absence and responding to employee queries should understand:
- The new eligibility rules
- The updated payment calculation
- How to record and approve day-one sickness absences
- Adjust Recruitment and Costing Processes
With SSP applying to all employees, employers should factor statutory sick pay into future workforce planning and costing.
Final Thoughts
The Statutory Sick Pay reforms taking effect in April 2026 will create a clearer and more accessible system for employees while requiring employers to update processes and documentation. Preparing now will help ensure smooth compliance and effective workforce management when the new rules come into force.
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