11/03/2026

Statutory Sick Pay (SSP) is to undergo significant changes from next month following reforms introduced by the Employment Rights Act.

The new rules are designed to strengthen employee sick pay rights by extending eligibility to more people and increasing entitlements.

For employers, understanding these upcoming changes to Statutory Sick Pay and taking steps to update relevant HR policies will be essential to ensure compliance.

What is Statutory Sick Pay?

SSP is the minimum amount employers must pay eligible employees who are unable to work due to illness.

Currently, employees must:

  • be off sick for four or more consecutive days,
  • earn at least the Lower Earnings Limit, and
  • follow their employer’s sickness reporting procedure.

This means that SSP is only payable from day four of sickness absence, as the first three days are ‘waiting days’.

However, from 6 April this year, the Employment Rights Act will introduce major changes to this system.

Statutory Sick Pay from Day One

The most notable change is the removal of the three-day waiting period. Under the new rules, eligible employees will receive SSP from the first day of sickness absence, rather than the fourth. This is intended to ensure employees have access to immediate financial support when they are unable to work due to illness. For employers, this means that SSP payments will start earlier and payroll systems may need to be updated to reflect the change.

Expanded SSP Eligibility

Another key reform concerns the earnings threshold for SSP eligibility. Currently, employees must earn at least the Lower Earnings Limit to qualify for SSP, which is £125 per week. Those who are paid less than this, typically workers in hospitality, retail and gig economy roles, are not eligible.

From 6 April, the Employment Rights Act will remove this Lower Earnings Limit, extending SSP to people who earn below the previous threshold. SSP entitlement will be calculated as a percentage of their earnings. The aim is to improve financial security for low earners. Pay will be the lower of 80% of their average earnings or £123.25 per week.

When the Changes Take Effect

The new SSP rules take effect from 6 April 2026. It is important to note that the date the sickness absence begins determines which rules apply:

  • Absences starting before 6 April 2026 will come under current SSP rules.
  • Absences starting on or after 6 April 2026 will fall under the new Statutory Sick Pay framework.

What Employers Should Do Now

With the changes fast approaching, businesses should prepare by:

  • Updating sickness absence and HR policies
  • Reviewing payroll systems and procedures
  • Training managers on the new employee sick pay rights
  • Seeking employment law advice where necessary

Need Help With Statutory Sick Pay?

The SSP changes represent a significant shift in approach to sick pay and, as the implementation date approaches, our advice would be to take proactive steps to understand the new rules and ensure your policies reflect the upcoming changes.

For more detailed advice about sickness absence or any aspect of employment law, please get in touch with our employment experts by emailing enquiry@beswicks.com or phoning 01782 205000 or 0161 929 8494. For unlimited support from an employment solicitor for a low monthly fee, ask about our Beswicks HR service.