Statutory Sick Pay changes in April 2026 - what every Employer needs to know!

Now that the new Employment Rights Act 2025 has come into force, changes to a number of historical statutory rules employers have followed for decades will now be changed.  One of the first changes will be to the current Statutory Sick Pay (SSP) regime which will take place from 6 April 2026.

As an employer, you will be expected to understand the changes and your obligations under the new rules, what is also important is that you look to implement and plan for the changes in advance of the deadline, so that you are compliant with the new legislation and are not on the back foot from the off.

Here is a quick checklist of what employers need to understand to remain compliant.

1. No lower earnings threshold

Currently employees must earn above the lower earnings limit ie earn at least £125 before tax per week to qualify for SSP.This has now been abolished which means that every employee, regardless of their earnings will be entitled to be paid SSP.

2. SSP from first day of qualifying sickness

Currently employees only receive SSP from the 4^th day of sickness, as the first three days are waiting and are unpaid.This has now been removed and from the 6^th April 2026, SSP will now be payable from the first day the employee calls in sick. So it is important that your payroll and sickness absence tracking is adjusted to take this into account.

3. New calculation of SSP

Currently there is a simple flat rate for SSP regardless of earnings.This will be changed so that SSP will generally be paid at the lower of either:

• 80% of an employees average weekly earnings OR
• The statutory flat weekly rate which will be set by the government each year, which means that it will likely increase each year

This change means that SSP may vary by each employee based on their weekly earnings, so it is important that your payroll systems are able to calculate accurately to avoid underpaying or overpaying sick pay.

4. Transitional protection for employees already on SSP

For those employees who are on a period of SSP by the 6 April 2026, special arrangements will apply where:

• Workers already receiving SSP won't see their payments reduced mid-absence
• If you have employees who are still within the "waiting" period they will begin to receive SSP from the 6 April 2026
• Those employees who were not eligible for SSP before, will now be eligible to be paid SSP from the 6 April if they are still off sick by this date

These transitions mean that you need to be aware of who is off sick and their sickness status before the 6 April 2026, so that you can take into account any additional payments that may need to be made in line with the new SSP rules.

Now that you know what you need to do, how do you make sure your business is ready! Here are some practical employer actions to consider taking forward.

1. Update your payroll systems

It is your responsibility to make sure your payroll systems are compliant, so make sure that your payroll systems can calculate SSP on the new 80% rule and to trigger payments from day one of absence.  Older payroll software may not be able to handle these changes, so you need to make sure that they can.  Don’t rely on your payroll provider to automatically update – they might not be able to and as such you might need to consider if your payroll system is fit for purpose.

2. Review your SSP policies and procedures

Your employer handbook and your absence management policies and procedures will need to be updated to reflect the new changes in relation to eligibility, calculation methods and absence reporting requirements, you will also need to remove references to "waiting days" and the old earnings threshold.

3. Train/update line managers and HR on absence management

Staff who are responsible for managing and recording absence management should understand the changes so that they can record sickness absences accurately and can explain how SSP is calculated will help prevent disputes.

4. Communicate with Employees the new rules

As these changes have been universally reported, it is important that you show your employees that you are aware of them and have implemented the necessary changes within your documentation and processes as this builds trust and reduces any queries during the implementation of the changes as a whole.

The April 2026 SSP reforms significantly widen entitlement and require meaningful updates to payroll, HR systems, and absence management processes. Employers who plan early, test software readiness, and communicate changes clearly will be best placed to remain compliant and support their workforce effectively during and after the transition.

If you would like support on helping make sure that your policies and procedures are in line with the new changes Chattertons Employment Department can review your documents and advise you on how to make them compliant making your business compliant and ready.

Contact us

Please do not hesitate to contact our Employment Law Team on 
01522 814638, or make an enquiry here.