The rules around Statutory Sick Pay changed significantly on 6 April 2026. If you're a UK employer, three things are different: SSP now starts from day one of sickness, the earnings threshold has been scrapped, and the calculation method has changed. Here's what that means in practice and what you need to action.
What changed with statutory sick pay in April 2026
Three significant changes came into effect on 6 April 2026 that affect most UK employers.
No more waiting days
Under the old rules, employees had to complete three unpaid waiting days before SSP kicked in. From 6 April 2026, that's gone. SSP is now payable from the first qualifying day of sickness absence. This is sometimes referred to as "day one entitlement," and it applies to any new period of absence starting on or after that date.
For employers, this means a sick employee who would previously have received nothing for the first three days now starts accruing SSP immediately.
Earnings threshold removed
Previously, employees had to earn at least the Lower Earnings Limit (£123.00 per week in 2025/26) to qualify for SSP. That threshold has been eliminated entirely. From April 2026, eligible employees receive SSP regardless of how much they earn. Government estimates suggest this extends coverage to approximately 1.3 million additional workers, including many part-time and lower-paid staff who were previously excluded.
New rate and 80% AWE calculation
The statutory weekly rate of SSP increased to £123.25 from 6 April 2026. But there's an important change to how it's calculated: SSP is now the lower of £123.25 or 80% of the employee's Average Weekly Earnings (AWE). For most employees earning above around £154 per week, the flat rate of £123.25 applies. For lower-paid workers, 80% of their AWE may produce a lower figure, and that's what they receive.
Who qualifies for SSP now
The eligibility changes mean more of your workforce is now covered.
Employees and agency workers
To qualify, a worker must be classed as an employee or agency worker for tax purposes, meaning their tax is deducted automatically through PAYE. The old earnings threshold no longer applies. The employee must also be sick for at least one qualifying day (the days they're contracted to work) and have notified you of their sickness within the required timeframe; within 7 days if you haven't set a shorter deadline.
What about variable-hours and part-time staff?
Variable hours staff and part-time workers are now more likely to qualify than before, given the removal of the earnings threshold. AWE is calculated using their actual earnings subject to National Insurance over the relevant period, so their SSP will reflect what they genuinely earn rather than being cut off at a threshold, especially when supported by robust time and attendance software.
Who still doesn't qualify
Self-employed workers are not eligible. Employees who have already received 28 weeks of SSP in a linked period of sickness also cannot receive more until that link is broken. Employees must still notify you of their absence correctly to trigger their entitlement.
How to calculate SSP from April 2026
The calculation method changed, here's the step-by-step, and accurate employee timekeeping practices are essential to ensure SSP is calculated correctly.
- Identify qualifying days: the days the employee is contractually due to work during the sick period
- Calculate Average Weekly Earnings (AWE): divide total earnings subject to National Insurance in the relevant period by the number of weeks in that period
- Apply the lower of £123.25 or 80% of AWE: for most employees this will be £123.25; for lower-paid staff it may be less
- Calculate the daily rate: divide the applicable weekly amount by the number of qualifying days in that week
- Multiply by the number of payable sick days in the pay period
Example calculation:
| Full-time employee (5 qualifying days/week, AWE £400) | Part-time employee (3 qualifying days/week, AWE £100) | |
|---|---|---|
| Weekly SSP amount | £123.25 (lower of £123.25 or 80% of £400) | £80.00 (80% of £100, lower than £123.25) |
| Daily rate | £24.65 | £26.67 |
| SSP for 5 sick days | £123.25 | £80.00 (3 qualifying days) |
Transitional arrangements for employees already on SSP
Employees who were already receiving SSP before 6 April 2026 continue on the flat rate of £123.25 under transitional protections. This includes employees earning between £125.00 and £154.05 per week who were on SSP before the change. The transitional period ends when they return to work, when their SSP entitlement ends, or when their contract ends, whichever comes first.
What employers need to do now
The rule changes require practical action, most businesses will need to update at least three things.
Update your sick pay and sickness absence policies
Your employee handbook and employee attendance and sickness policies almost certainly reference the three waiting days and the Lower Earnings Limit. Both are now out of date. Update your written policy to reflect day one entitlement and the removal of the earnings threshold. If you have a company sick pay scheme that runs alongside SSP, check whether its terms need adjusting too. This is also a good moment to review your absence notification procedures to make sure they're clearly communicated to staff.
Check your payroll system reflects the new rules
The change to the 80% AWE calculation means your payroll system needs to handle two scenarios: the flat rate for most employees, and an AWE-based figure for lower-paid workers. Speak to your payroll provider to confirm the system is updated. Errors here will result in under or overpayment, both of which create admin to fix and, in the case of underpayment, potential employment rights issues.
Brief your managers
The people closest to your team's day-to-day absences (team leaders, ops managers, supervisors) need to understand two things: SSP starts from day one, and more employees now qualify. Without that briefing, managers may still be telling employees they won't receive anything for the first few days of sickness, which is now incorrect, increasing the risk of confusion, disputes, and missed shifts management challenges. A short written update is enough; it doesn't need to be a training session.
Record-keeping obligations
HMRC requires employers to keep SSP records for at least three years, alongside any broader sick leave policies and documentation your organisation maintains.
You need to retain:
- Dates of sickness absence (including the first qualifying day),
- Any fit notes or medical evidence received,
- SSP1 forms where relevant.
For absences of 7 calendar days or fewer, employees can self-certify, no fit note is required. For anything longer than 7 days, a fit note from a GP or other healthcare professional is needed.
If an employee doesn't qualify for SSP, you must issue an SSP1 form within 7 days of their first sick day (or sooner if they return before that). This allows them to claim Employment and Support Allowance (ESA) if needed. Employees working multiple jobs may be entitled to SSP from each employer separately; keep records per employment relationship and be prepared to address repeated lateness or absence through structured employee attendance write-ups where appropriate.
How SSP links to long-term sick leave
SSP covers the first 28 weeks of sickness. After that, a different set of rules applies.
Once SSP entitlement ends, employers are required to issue an SSP1 form so employees can pursue alternative support. Periods of sickness are treated as linked if they occur within 56 days of each other. Multiple linked periods count as one continuous period for the purposes of the 28-week maximum. This matters for employers managing employees with recurring short absences; they may reach the 28-week limit faster than expected.
For guidance on what happens after SSP runs out, see our guide to long-term sick pay and consider how your wider sick leave framework and policies support employees beyond the statutory minimum.
How Shiftbase helps you manage sickness absence
Getting SSP right starts with accurate absence records. When sick leave is logged in a spreadsheet or a group chat, it's easy to miss a qualifying day, miscalculate a start date, or lose track of where an employee is in their 28-week entitlement, which also distorts your overall absence rate metrics.
Shiftbase's absence management feature keeps absence records connected to the live schedule. Managers log sick leave in the system, the schedule updates immediately, and absence history stays in one place. Combined with time tracking and efficient online shift planning, hours and absences feed directly into payroll without manual re-entry.
If you manage a shift-based team in hospitality, retail, or services and want to spend less time on absence admin and more time on the floor, try Shiftbase free for 14 days — no credit card required.
- Automatic accrual of vacation hours
- Request leave easily
- Leave registrations visible in the planning
