Discover the key Statutory Sick Pay (SSP) changes coming into force on 6 April 2026, including day‑one sick pay entitlement, removal of the Lower Earnings Limit, and the new 80% AWE calculation. Learn how the reforms will impact employers, payroll processes, and absence management.

Introduction: What Is Changing with Statutory Sick Pay in 2026?

The UK Government is introducing major changes to Statutory Sick Pay (SSP) effective 6 April 2026. These updates represent the biggest overhaul of SSP in decades and will affect employers across all industries. Many businesses may already be aware that reforms are on the horizon, but understanding the details is essential for compliance and effective workforce planning.

The new rules widen eligibility, change how SSP is calculated, and alter how short‑term illness affects company payroll. Below, we break down every major change and outline what employers need to prepare for.

SSP Will Be Payable from Day One (No More Waiting Days)

From 6 April 2026, SSP becomes payable from the first full day of sickness absence, removing the current three‑day waiting period.

Why this matters for employers

• Short‑term absences (1–3 days) will now result in SSP being paid.
• Employers may see an increase in SSP costs for minor illnesses.
• Fast and accurate absence reporting systems will become crucial.

This is one of the most impactful changes, especially in sectors where brief, unplanned absences are common.

Removal of the Lower Earnings Limit (LEL)

The Lower Earnings Limit, which currently determines SSP eligibility, will be abolished. This means all employees—regardless of earnings—may now qualify for SSP.

Who becomes newly eligible?

• Part‑time workers
• Casual or zero‑hour staff
• Low‑paid employees
• Workers on variable hours or seasonal contracts

This change will significantly widen the number of employees entitled to sick pay.

New SSP Calculation: 80% AWE or £123.25 Flat Rate

Under the new rules, SSP will be calculated as the lower of:

• 80% of the employee’s Average Weekly Earnings (AWE), or
• The statutory flat rate of £123.25 per week (for 2026/27)

What this means

• SSP is no longer a one‑size‑fits‑all amount.
• Workers with lower earnings may receive less if 80% of their AWE is below the flat rate.
• Payroll teams must ensure accurate AWE calculations.

This is a major shift, aligning SSP more closely with actual earnings.

Wider Eligibility = More Employer Responsibility

With more workers qualifying for SSP and payments starting earlier, employers should expect:

• A higher number of SSP claims
• Increased short‑term SSP costs
• More payroll activity
• Greater emphasis on accurate attendance and absence recording

Industries with high proportions of lower‑paid or variable‑hours workers—such as retail, hospitality, care, and logistics—may feel the biggest impact.

Transitional Rules for Employees Sick Over 6 April 2026

Government guidance outlines how to treat absences that begin before and continue after the rule changes. Key points include:

• Workers previously ineligible due to low earnings may become eligible after 6 April.
• Waiting days no longer apply to any absences that extend beyond the reform date.

Employers should review overlapping sickness absences carefully to ensure legal compliance.

What Employers Should Do Now to Prepare

To ensure compliance with the 2026 SSP reforms, employers should begin preparing by:

• Updating absence and sickness policies

Ensure policies reflect day‑one SSP entitlement and wider eligibility.

•  Reviewing payroll system capability

Payroll software must support 80% AWE calculations and variable SSP amounts.

• Training managers and HR on new rules

Clear internal communication will help avoid confusion and payroll errors.

• Reviewing your workforce demographics

Consider where eligibility expansions may increase SSP costs.

Government guidance recommends proactive preparation to avoid disruption.

Conclusion: A Significant Shift for UK Employers

The Statutory Sick Pay changes coming in April 2026 represent a major evolution in how sick pay is administered. With the removal of waiting days, abolition of the Lower Earnings Limit, and introduction of AWE‑based calculations, employers will face new administrative and financial considerations.

By preparing early—updating processes, reviewing policies, and ensuring payroll readiness—businesses can transition smoothly into the new SSP framework.