Key changes made to Statutory Sick Pay from 6 April 2026

Jun 30
2 min read

Statutory Sick Pay (SSP) is set to undergo significant changes starting 6 April 2026, following the Employment Rights Act 2025. These updates will impact how payroll professionals manage sick pay and how employees qualify for and receive SSP. Understanding these changes is essential to ensure compliance and to support employees effectively during periods of illness.

Eye-level view of a payroll document with highlighted SSP rates and calculations — Updated Statutory Sick Pay rates and eligibility rules

Eligibility changes for SSP

One of the biggest shifts is the removal of the Lower Earnings Limit (LEL) from 6 April 2026. Previously, employees had to earn above the LEL to qualify for SSP. Now, all employees with an employment contract qualify, regardless of their earnings, as long as they meet the basic SSP conditions:

They must be an employee.
They must be sick and off work.
They must be within the maximum entitlement period.

This means employees who were previously excluded because their earnings were below the LEL can now receive SSP. For example, a part-time worker earning less than the previous threshold will now be eligible for sick pay.

Another important change is how the Period of Incapacity for Work (PIW) is defined. From 6 April 2026, a PIW can start with just one qualifying day of sickness. This removes the need for waiting days and makes it easier for short or intermittent absences to qualify for SSP. It also simplifies counting days towards the 28-week maximum entitlement.

How SSP will be calculated

The SSP flat rate will be set at £123.25 per week. Employees will receive the lower amount between:

80% of their Average Weekly Earnings (AWE), or
The SSP flat rate.

The AWE is calculated over the 8-week period ending on the last payday before sickness, counting backward. Payments will be rounded up to the nearest whole penny.

For employees already receiving SSP before 6 April 2026, the flat rate will be uprated to avoid disadvantaging them. For example, someone earning between £125.00 and £154.05 per week who was on SSP before the change will now receive the flat rate of £123.25.

If an employee has linked periods of incapacity (within 56 days), the initial 8-week AWE will be used for calculating SSP throughout those linked periods. SSP will be payable from the first qualifying day of sickness, with no waiting days.

The maximum entitlement remains up to 28 weeks of SSP for continuous or linked sickness periods.

Strengthened enforcement and dispute resolution

The enforcement of SSP rights will be stronger under the new rules. Disputes will now be handled by the Fair Work Agency (FWA) and tribunals, replacing some of the older HMRC dispute processes. This change aims to provide clearer, faster resolutions for both employers and employees.

What payroll professionals should do next

Payroll teams should update their systems and processes to reflect these changes by April 2026. This includes:

Removing earnings thresholds from SSP eligibility checks.
Adjusting SSP calculations to use the new flat rate and AWE rules.
Tracking qualifying days accurately to apply SSP from the first day of sickness.
Preparing for new dispute procedures through the Fair Work Agency.