What Are the Current SSP Rules?
At the moment, employees only qualify for Statutory Sick Pay if they meet two key conditions:
- They must be off sick for four consecutive qualifying days before SSP becomes payable
- They must earn above the Lower Earnings Limit for National Insurance, which in the current tax year is £125 per week
If either of these conditions is not met, SSP is not payable.
What’s Changing From 6 April 2026?
From 6 April 2026, both of these restrictions will be removed.
Under the new rules:
- SSP will be payable from day one of sickness absence
- The Lower Earnings Limit requirement will be removed
This means far more employees will qualify for Statutory Sick Pay, and they will qualify immediately.
How Much Will Employees Be Paid?
Under the new framework, eligible employees will be entitled to receive:
- 80% of their average weekly earnings, or
- The statutory weekly SSP rate,
whichever is lower.
This introduces a new calculation element for employers and payroll teams, particularly for employees with variable earnings or lower-paid roles.
What This Means for Employers
From an employer’s perspective, these changes are significant.
Day-one SSP will increase employer responsibility
Employers will now be responsible for paying SSP from the first day an employee is off sick, rather than from day four. This increases both:
- short-term absence costs
- the importance of clear absence management processes
More employees will qualify
Removing the Lower Earnings Limit means SSP will apply to employees who were previously excluded, including some part-time and lower-paid workers.
This widens eligibility across the workforce and increases payroll exposure.
Why Policies and Procedures Need Updating
With these changes coming into effect, employers should review and update:
- sickness absence policies
- employee handbooks
- payroll procedures
- manager guidance
Employees will need to understand what they are entitled to, and managers will need clarity on how absence is handled, documented, and paid.
Clear, well-communicated policies will help avoid confusion, inconsistency, and disputes.
Payroll Software Readiness Is Critical
HMRC has already shared the new SSP framework with payroll software providers, and systems are currently being updated and tested.
However, employers should not assume this will happen automatically.
Before entering the 2026–27 tax year, it’s important to confirm that:
- your payroll software will be fully compliant
- SSP calculations are correctly configured
- testing has been completed
- payroll teams understand how the new rules operate
Failing to do this could lead to incorrect payments, employee complaints, or compliance issues.
Preparing Now Reduces Risk Later
Although April 2026 may feel some way off, preparation should start well in advance.
Practical steps employers can take now include:
- reviewing sickness absence data to understand potential cost impact
- checking current policies for alignment with upcoming rules
- planning manager training around absence conversations
- speaking to payroll providers or advisers about readiness
Early preparation makes the transition far smoother and avoids last-minute pressure.
What We Still Don’t Know
While the headline changes are clear, further detail is still expected on how some aspects will work in practice.
As with many legislative changes, additional guidance is likely to be issued closer to implementation. Employers should stay informed and be ready to adapt as more information becomes available.
