What changed on 6 April 2026
The Employment Rights Act 2025 made three big changes to Statutory Sick Pay (SSP), according to the government's employer guidance:
- No waiting days. SSP is now payable from the first full day of sickness absence. Previously, the first three qualifying days were unpaid.
- No earnings threshold. The Lower Earnings Limit requirement has been removed, so all eligible employees qualify regardless of how much they earn.
- The 80% rule. SSP is paid at £123.25 a week or 80% of the employee's average weekly earnings, whichever is lower.
The changes apply across the whole of the UK. Absences that started on or after 6 April 2026 follow the new rules, while absences that began before then follow the previous rules unless transitional provisions apply.
Who is most affected?
The biggest impact is on employers with part-time, low-paid or variable-hours staff, such as nurseries, care providers, hospitality and retail. Staff who previously earned too little to qualify now receive SSP, and everyone is paid from day one, so even short absences now carry a cost.
Worked example
A part-time employee earns an average of £120 a week. Under the old rules, they earned below the Lower Earnings Limit and got no SSP. Now, 80% of £120 is £96, which is lower than £123.25, so their weekly SSP is £96, payable from the first qualifying day of sickness.
A full-time employee earning £500 a week gets the flat rate of £123.25, because 80% of £500 (£400) is higher than the flat rate.
What employers should do
- Make sure staff know to report sickness on day one
- Update sickness absence policies and contracts that mention waiting days
- Check how your payroll calculates average weekly earnings for irregular-hours staff
- Review company sick pay schemes that were designed around the old waiting days
- Remember SSP can't be reclaimed from HMRC, even by small employers
If we run your payroll, these rules are applied automatically. HMRC's guide to calculating SSP manually has the full method.