On 6 April 2026, Statutory Sick Pay changed more significantly than at any point since the scheme was introduced in 1983. The Employment Rights Act 2025 removed the three day waiting period, abolished the Lower Earnings Limit that excluded lower paid workers, and introduced an earnings linked rate for those on the lowest pay. Every employer in the UK is affected. If your payroll hasn’t been updated to reflect these changes, you’re already non compliant.
What changed on 6 April 2026
No more waiting days. Previously, the first three qualifying days of sickness were unpaid. SSP only kicked in from day four. That rule is gone. SSP is now payable from the first qualifying day of absence. An employee who is off sick for one day is entitled to SSP for that day. For employers with high levels of short term absence, this is a direct cost increase.
The Lower Earnings Limit is abolished. Before April 2026, employees had to earn at least £125 per week (the LEL for 2025/26) to qualify for SSP. Workers below that threshold, including many part time, casual, and zero hours staff, were excluded entirely. That barrier is gone. All employees now qualify for SSP regardless of their earnings level.
A new earnings linked rate for low earners. The standard SSP rate for 2026/27 is £123.25 per week. But employees whose average weekly earnings are low enough that 80% of their AWE comes to less than £123.25 receive the 80% figure instead. This prevents a situation where SSP exceeds what the employee would normally earn. Average weekly earnings are calculated over the eight weeks before the start of the absence.
Who this affects most
The removal of waiting days affects every employer. But the abolition of the LEL has the biggest impact on businesses that employ a large number of part time or low paid workers. Hospitality, retail, social care, agriculture, and seasonal businesses are all in the firing line. If you run a care home payroll, the combination of day one SSP and newly eligible low hours staff could add thousands to your annual SSP bill.
The CIPD reported that UK workers took an average of 9.4 sick days in 2025, the highest figure in 15 years. With SSP now payable from day one for every employee, even short absences that previously cost nothing in SSP now carry a financial cost.
What employers need to do
First, confirm your payroll system has been updated. The three day waiting period must be removed from your SSP configuration. Any logic that checks earnings against the LEL before triggering SSP needs to be switched off. The 80% AWE calculation for low earners needs to be operational. If you outsource your payroll, your bureau should have made these changes before the first April pay run.
Second, review your absence management policy. If your policy references waiting days or the LEL, it’s now inaccurate and needs updating. Any employment contracts that specify SSP terms should be checked too.
Third, budget for the cost increase. Model the impact based on your sickness absence data from the last 12 months. Every absence of one to three days that previously attracted zero SSP now costs up to £73.95 (three days at the daily rate of £24.65). Across a workforce, that adds up quickly.
SSP recovery: what employers can and can’t reclaim
Small employers (those whose total Class 1 NIC in the previous tax year was £45,000 or less) can recover 109% of statutory parental pay through the Employer Payment Summary. But SSP is different. Employers cannot recover SSP from HMRC. The Percentage Threshold Scheme that allowed partial SSP recovery was abolished in 2014. Every penny of SSP is a cost to the employer. For payroll services that handle SSP calculations correctly from day one, check our pricing or get in touch.
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