Keeping you up to date with the latest Statutory Sick Pay rules

From 6 April 2026, the rules around Statutory Sick Pay (SSP) changed.

If you’re an employer with workers on your payroll, it’s vital that you update your payroll processes to bring them in line with these changes to SSP.

How has SSP changed?

The changes to the SSP system have fundamentally altered how sickness absence is compensated. The new rules remove the long-standing barriers for lower-paid workers and change the financial mechanics of every payroll run.

From 6 April 2026, Statutory Sick Pay (SSP) will be:

• Available to all eligible employees regardless of their earnings
• Payable from the first full day of sickness absence
• Paid at 80% of an employee’s average weekly earnings (AWE) or the uprated weekly flat rate of £123.25, whichever is lower.

How will these changes affect your payroll?

The major change to SSP is the removal of the Lower Earnings Limit (LEL).

SSP is now available to all eligible employees, regardless of their weekly earnings. Crucially, the ‘waiting days’ rule has also been abolished, meaning that sick pay is now payable from the very first full day of absence rather than the fourth.

From 6 April 2026, the employee’s rate of pay will be set at either 80% of their Average Weekly Earnings (AWE) or the new uprated flat rate of £123.25 per week, whichever is the lower.

This transition affects all employers, particularly those with part-time or low-income staff who were previously ineligible for support.

Special transitional rules also apply to employees whose sickness begins before the April deadline but continues beyond it, ensuring they move onto the new rates and eligibility criteria seamlessly.

Helping you bring your payroll in line with the new SSP rules

If you’ve not yet updated your payroll to factor in these SSP changes, come and talk to us.

We’ll run a comprehensive audit of your current payroll set-up and software to ensure you’re complying with the new SSP legislation and are compensating your employees correctly.