From April 2026, Statutory Sick Pay (SSP) is changing. From the first full day of sick leave, employers are required to pay SSP in a bid to ensure that unwell employees have financial security and to reduce employees coming back to work too soon and spreading infection.

These changes will have a direct impact on payroll processes and employer obligations.

What’s Changing?

• SSP will be available to ALL employees due to the removal of the Lower Earnings Limit.
  
• SSP will be payable from the FIRST FULL DAY of sick leave due to the 3-day waiting period being removed.
  
• SSP will be calculated at 80% of their average weekly earnings (AWE) or the flat weekly rate (£123.25), whichever is lower.

Further Considerations

• Any employees who are off sick on or after 6 April 2026 and previously were not entitled to SSP due to the lower earnings limit will be eligible for SSP from 6 April 2026.
  
• Transitional protection – employees who were already off sick before 6 April 2026 and receiving SSP will be “transitionally protected” and receive the uprated flat rate of £123.25 until either they return to work, exhaust their entitlement or their contract finishes.

How Does This Compare?

Pre-6 April 2026

Employee 1 earns £125 per week and is unwell and on sick leave for 5 days.

In the tax year 2025-26, they are entitled to SSP of £118.75 per week. They had not been unwell prior to this period of leave within the previous 8 weeks and therefore didn’t have any linked periods. The first 3 days of their sick leave are deducted as “waiting days” and they are therefore entitled to 2 days SSP of £47.50.

Post-6 April 2026

The same employee earning £125 per week is unwell and on sick leave for 5 days from 13–17 July 2026. They have not been unwell in the previous 8 weeks.

Their SSP is now calculated at either 80% of their average weekly earnings or the flat rate of £123.25 per week. This means that they would receive 80% of their AWE at £100 per week.

The 3-day waiting period has been removed, so they are entitled to the full £100.

This represents an increase of £52.50 compared to the 2025-26 entitlement.

Actions to Take: Employer Checklist

• Do your policies reflect the updated rates and rules, including the removal of the 3-day waiting period?
  
• Have you notified your employees of the updated SSP rates and rules?

If you have any questions regarding the change to Statutory Sick Pay, please get in touch.

(E) enquiries@advaloremgroup.uk (T) 01908 219100 (W) advaloremgroup.uk