How will the new rates & legislations affect you?

From 6 April 2026, new Statutory Sick Pay (SSP) rules

1. Payment of SSP from Day One (No Waiting Days) 

• Abolition of 3-day wait: The current requirement for a 3-day waiting period is removed.
• Day One Entitlement: SSP will be payable from the very first day of a sickness absence.
• Phased Returns: This enables employees on a phased return to work to claim SSP for individual days they cannot work. 
  
  

2. Removal of the Lower Earnings Limit (LEL)

• Universal Eligibility: The requirement to earn a minimum amount (previously £125+ per week) to qualify for SSP is removed.
• Broader Coverage: All employees will now be entitled to SSP, regardless of their income level, benefiting many part-time and low-paid workers. 
  
  

3. New Calculation Method

• 80% of Earnings or Flat Rate: SSP will be calculated as the lower of 80% of an employee’s average weekly earnings (AWE) or the statutory flat rate.
• Uprated Rate: The flat rate of SSP will increase to £123.25 per week from 6 April 2026.
• Calculation Period: AWE is generally calculated over an eight-week period prior to the sickness. 
  
  

4. Transitional Protections

• Existing Sickness: Employees already receiving SSP before 6 April 2026, and who are still off sick on that date, will receive transitional protection.

No Drop in Pay: They will continue to receive the uprated flat rate (£123.25) until they return to work, exhaust their 28-week entitlement, or their contract ends.

Summary of Changes (2025/26 vs. from 6 April 2026)

Key Actions for Employers

• Update Payroll: Ensure payroll software can handle the 80% vs. flat rate calculation and day-one payments.
• Revise Policies: Review sickness and absence policies to remove references to waiting days and earnings thresholds.
• Understand Enforcement: The new Fair Work Agency will oversee compliance with these, and other, employment rights from 6 April 2026