Several important changes to Statutory Sick Pay (SSP) come into force from 6 April 2026. These reforms are part of wider employment law changes introduced through the Employment Rights Act 2025.

For employers across Worcester, it is important to understand how the new rules work and what they could mean for your payroll processes and sickness policies. In this blog we explain the key changes.

What is Statutory Sick Pay (SSP)?

SSP is the legal minimum amount employers must pay eligible employees who are off work due to sickness.

SSP is paid through payroll in the same way as normal wages and can be paid for up to 28 weeks of sickness absence. Some employers choose to offer enhanced sick pay through their employment contracts, but SSP represents the minimum level required by law.

When do the new Statutory Sick Pay rules start?

The new rules will apply to sickness absences that begin on or after 6 April 2026. They form part of wider employment reforms designed to improve financial protection for workers who are unwell and unable to work.

What are the main changes to Statutory Sick Pay?

Three key changes are coming in April 2026:

1. SSP will be payable from the first day of sickness absence. Previously, employees were paid from the 4th consecutive day of sickness absence.
2. The Lower Earnings Limit will be removed, meaning more workers will qualify for SSP even if they earn below the previous weekly threshold.
3. The calculation of SSP will change, with payments calculated on either the lower of 80% of average weekly earnings or the statutory weekly rate.

These changes will expand eligibility and may mean employers need to pay SSP more frequently and to more employees, particularly for short-term absences. We have provided more information about the changes below.

How does Statutory Sick Pay work under the current system (before April 2026)?

Under the current rules, employees normally become eligible for SSP only after they have been off sick for four consecutive days, including non-working days.

The first three days are known as “waiting days”, during which no SSP is paid. Employees must also earn at least £125 per week on average to qualify.

This current system has been criticised because lower-paid workers and those with short illnesses often receive no financial support.

What does “SSP from day one” mean?

From 6 April 2026, the three waiting days will be removed. This means SSP will be payable from the first full day of sickness absence, rather than starting on day four as it does currently.

For employers, this could mean more frequent SSP payments for short illnesses, such as one or two day absences.

How will the Statutory Sick Pay rate be calculated from April 2026?

From April 2026, SSP will be calculated as the lower of two figures:

• 80% of the employee’s average weekly earnings, or
• The statutory weekly rate, which will be £123.25 per week for the 2026/27 tax year.

The employee will receive whichever amount is lower.

Average weekly earnings are normally calculated using the eight weeks before the sickness absence.

Who will become eligible for Statutory Sick Pay under the new rules?

One of the biggest changes is the removal of the Lower Earnings Limit. Currently, employees must earn at least £125 per week to qualify for SSP. From April 2026, this requirement will be removed, meaning all eligible employees can receive SSP regardless of earnings.

This change is expected to bring around 1.3 million additional workers into the SSP system.

What other criteria must employees meet to receive Statutory Sick Pay?

Employees must meet all the following rules to claim SSP:

• Have done some work for their employer.
• Tell their employer they are sick; within the deadline the employer has set or within 7 days.
• Be classed as an employee for tax purposes, i.e. they must be paid through PAYE.

Can self-employed people claim Statutory Sick Pay?

No. Anyone who is self-employed and pays their tax through self-assessment is not eligible to receive SSP.

Is the maximum period Statutory Sick Pay can be claimed changing?

No. The maximum period for which SSP can be paid will remain 28 weeks per sickness period.

Other existing rules, such as those around linked periods of sickness, will also continue to apply.

What other areas of Statutory Sick Pay should employers be aware of?

With the upcoming changes to SSP, employers may also have to deal with the following situations:

1. Preventing a reduction in the employee’s sick pay if their sickness absence began before 6 April 2026.
2. SSP for linked periods of sickness and how this is calculated.
3. How SSP is paid if an employee's qualifying days fall either side of 6 April 2026, i.e. days when they are required to work but are sick.

In these circumstances, we advise you to contact JRMA, and we can advise you accordingly.

What should employers do to prepare for the Statutory Sick Pay changes?

If you employ staff, it is sensible to review your processes before April 2026.

Start by checking that your payroll software and systems are ready to calculate SSP under the new rules. If you outsource your payroll to a third party such as JRMA, check that your provider is aware of the changes and has updated their systems (don't worry, JRMA already has!).

You may also want to review your sickness absence policy and employment contracts, especially if they reference waiting days or older eligibility rules.

Finally, make sure that managers and employees understand how the new rules work so there are no surprises when they take effect.

SSP guidance for employers is available on the ACAS website.

What if an employee is not entitled to Statutory Sick Pay?

In this scenario, the employer must inform the employee in writing. This can be done by letter, email, or an SSP1 form. If the employee is not entitled to SSP, they may be able to claim benefits or financial help with living costs.

How can JRMA help with Statutory Sick Pay changes?

Changes to payroll rules can quickly become complicated, especially when they affect everyday processes like sickness absence.

At JRMA, we help businesses ensure their payroll and financial systems run smoothly. We review the details, ensure all calculations are correct, and give you confidence that your payroll processes are compliant and accurate.

If you would like help reviewing your payroll processes ahead of the April 2026 changes, please get in touch. We would be happy to discuss how these changes could affect your business.