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Statutory Sick Pay Changes 2026
Since 6 April 2026, statutory sick pay (SSP) in the UK has changed in ways that affect both workers and employers.
While organisations will need to make practical adjustments, the reforms also provide an opportunity to:
- Improve absence management
- Support employee wellbeing
Promote an inclusive workplace culture
The Key Changes to Statutory Sick Pay
Since 6th April 2026, the key changes to statutory sick pay are:
- Payment from day one – employees are now entitled to statutory sick pay from the first day of sickness absence, removing the previous three waiting days.
- Removal of the lower earnings threshold- more workers, including part-time and lower-paid staff, now qualify for SSP.
- Calculation linked to earnings- statutory sick pay is now calculated as the lower of 80% of average weekly earnings or the statutory weekly SSP rate.
The reforms aim to provide more consistent financial support for employees during periods of illness while improving access to SSP for workers who were previously excluded.
Implications for Employers
The reforms will have a direct impact on employer costs and processes. The government estimates these changes will increase employer statutory sick pay costs by around £450 million per year.
Although this equates to roughly £15 more per employee, so for most organisations the individual impact is manageable.
For many businesses, the main challenges are likely to be operational rather than financial.
Employers may need to:
- Update payroll systems so they reflect day one entitlement and the new earnings-linked calculation.
- Review sickness absence policies to ensure they reflect the rules accurately
- Managers will also need guidance on communicating the changes to staff, applying them consistently, and maintaining accurate sickness absence records from day one. This matters more than ever now that the 3 day waiting buffer is gone.
With Statutory Sick Pay now payable from day one, accurate record keeping and consistent absence management processes will become increasingly important.
What the Changes Mean for Employees
Around 1.3 million low-paid employees received no statutory sick pay at all before the changes and many more lost income during short absences because of the 3 waiting days. The changes address both of these gaps. Removing the Lower Earnings Limit means that part-time and lower-paid workers, who are disproportionately women, will qualify for the first time to receive Statutory Sick Pay.
Removing waiting days means employees no longer face a financial penalty for short-term illness. This removes the financial pressure to come into work when unwell or attend work when they should be recovering.
Linking statutory sick pay to earnings (for lower rate earners) rather than a flat rate also gives employees a straightforward, more predictable picture of what income they will receive.
Key Benefits of Adopting Best Practice
Although businesses are legally required to comply with the new SSP rules, employers who go further and adopt a genuinely thoughtful approach to sickness absence tend to see wider benefits.
Employees who feel supported during periods of sickness are often more likely to return to work successfully and remain engaged in the workplace long term.
Well-documented absence processes can also help employers reduce the risk of errors, grievances or potential tribunal claims as employment rights enforcement continues to increase. Especially as the new Fair Work Agency has enforcement powers over statutory sick pay since April 2026.
FAQS
Is an employee entitled to statutory sick pay if they are off sick on their first day of work?
No. To be eligible for statutory sick pay (SSP) an employee must have performed some work for the employer under their employment contract (sch.11 to the Social Security Contributions and Benefits Act 1992).
So, although SSP is a day-one right, this does not apply to the employee’s first day of work.
An employee will be eligible for SSP on their first day if they had previously worked for the employer under a different contract and there is a gap of no more than eight weeks before the start of the new contract.
Are employees entitled to be paid their full contractual pay on keeping-in-touch days?
The relevant legislation does not address how employers should deal with contractual pay for employees who work a keeping-in-touch day during maternity, adoption or shared parental leave.
The employer could set out the rate of pay for employees working keeping-in-touch days in the employment contract or it may decide it on a discretionary, case-by-case basis, for example depending on the nature of the work carried out. Employers will need to ensure that they comply with the requirement to pay the national minimum wage.
If an employer decides to pay all employees their full contractual pay on keeping-in-touch days, it should also decide whether it will offset any statutory pay against the contractual pay, or pay it in addition.
For example, if an employer offsets statutory maternity pay (SMP) against contractual pay, an employee who earns £100 contractual pay for working a keeping-in-touch day during a week in which they are receiving the flat rate of SMP will still be paid only the flat SMP rate of £194.32 for the week. If the employee pays £100 contractual pay in addition to SMP, the employee will receive £294.32 for the week.
Employers should bear in mind that there may not be much financial incentive for an employee to work during the leave period if they will earn little or nothing above the statutory pay that they would already have received.
When can an employer dismiss an employee on the grounds of ill health?
An employer can dismiss an employee on the grounds of ill health if it is reasonable to do so under s.98 of the Employment Rights Act 1996. The employer must show both that the employee’s long-term sickness absence justified dismissal and that a fair procedure was followed.
Before dismissing, the employer should investigate whether the employee is likely to return to work within a reasonable time. A fair procedure normally includes:
- consulting with the employee;
- obtaining appropriate medical evidence;
- considering alternative employment or adjustments; and
- considering ill-health retirement where available.
The final decision is for the employer, taking into account the medical evidence and discussions with the employee. Failure to consider reasonable steps to support a return to work may also lead to a claim for disability discrimination under the Equality Act 2010.
<H4> In what circumstances can employees claim statutory sick pay?
Employees are entitled to statutory sick pay (SSP) if they:
- work under a contract of employment, including some agency workers and other “employed earners” liable for Class 1 National Insurance contributions;
- have not received certain state benefits within a specified period;
- are incapable of doing their work on the day; and
- provide evidence of sickness if required by their employer.
SSP is payable for up to 28 weeks, including linked periods of incapacity for work.
What Businesses Should Consider
With the new SSP rules now in force, employers should review whether their current processes, policies, and absence procedures are fully up to date and remain fit for purpose.
In practical terms, good practice includes:
- Updating policies and employee handbooks to reflect the new Statutory Sick Pay rules and sickness absence procedures.
- Communicating clearly with employees about SSP entitlement, reporting procedures, and what staff should expect during periods of sickness absence.
- Training managers on handling absence fairly and consistently, including record keeping, absence conversations, and applying policies in line with current legislation.
- Reviewing payroll and HR systems to ensure SSP calculations are accurate and newly eligible employees are identified correctly.
- Using absence data to identify patterns and provide early support where there are concerns around frequent short-term sickness absence or wider wellbeing issues.
Taking a proactive approach can help businesses reduce compliance risks, improve consistency and support positive employee relations as the updated SSP rules continue to operate in practice.
How MAD-HR Can Help
MAD-HR supports employers with practical advice on absence management, policy reviews, and day-to-day HR support, helping businesses manage sickness absence confidently, consistently, and in line with current legal requirements. If you would like to review your existing arrangements or discuss how the changes are affecting your business, we would be pleased to discuss your requirements.
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This article is intended for general information purposes only and does not constitute legal or professional advice. It should not be relied upon as a substitute for advice tailored to your individual circumstances. Please be aware that the law may have changed since the article was published.
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