Statutory Sick Pay Reform 2026

 SSP Paid from Day 1 of Sickness 

• Under the current rules, SSP is only payable from the fourth qualifying day of sickness absence — the first three are “waiting days.” 
• From 6^th April 2026, waiting days are no longer required and SSP must be paid from the first full day of sickness.  

Removal of the Lower Earnings Limit (LEL) 

• Currently, employees must earn at least the Lower Earnings Limit (around £125 per week) to qualify for SSP. 
• From 6^th April 2026, there will be earnings threshold for eligibility is not required; all employed individuals may qualify, regardless of their level of earnings.

New Calculation Method 

• Currently SSP is paid at a flat weekly rate (e.g., £118.75 per week in 2025/26). 
• From 6^th April 2026, SSP will be calculated as the lower of: 
• 80% of the employee’s average weekly earnings, or 
• The statutory flat rate (e.g., the equivalent of £118.75 for 2025/26; this will be uprated for 2026/27) 

Linked Periods of Sickness 

• Although linked periods of sickness will no longer apply for the purpose of waiting days, they will continue to be used to carry forward the calculation of average weekly earnings where multiple periods of linked sickness occur.

Remainder of 2025/2026 Tax Year 

• For sickness dates up to and including 5th April 2026, the existing SSP calculation must continue to be applied using the existing rules. 

 Transitional Rules 

• The new changes apply from 6^th April 2026 regardless of whether it is part of an existing absence.  
• An ongoing sickness absence that is already being paid will to continue being paid from 6^th April albeit using the new 2026/2027 rate where applicable. 
• An ongoing sickness absence for a lower paid worker that started prior to 6^th April 2026 will continue to be paid using the statutory flat rate until the worker returns to work. 
• They would not have the lower of 80% average weekly earnings applied. Any new absences after this would use the new calculation method moving forward. 
• A weeklong absence starting on 4^th April 2026 would result in two waiting days but then have SSP start to be paid from the 6^th April 2026 as per the new guidelines.
• If a worker earning less than the LEL has an ongoing absence, they would start to be paid SSP from 6^th April 2026 even if the absence prior to this date was unpaid. 
• Any calculation of average earnings from a linked period of sickness should continue to be used even if dated prior to 6^th April 2026. 

Adding Statutory Sick Pay from 6^th April 2026

Navigate to Payroll → Payments
Click on "Create New"
Select a worker
Select "Statutory Sick Pay" under "Rate"
Add relevant details, as required
Click on "Save"



Image 1 - Adding Statutory Sick Pay from 6th April 2026

Image 1 - Adding Statutory Sick Pay from 6th April 2026