pay-and-leave
Statutory Sick Pay changes from April 2026: employer guide
How UK employers should apply the April 2026 Statutory Sick Pay rules, update payroll and revise sickness absence wording.
Statutory Sick Pay changed on 6 April 2026. Eligible employees can now receive SSP regardless of their earnings, payment starts on the first full qualifying day of sickness, and the weekly amount is the lower of 80% of average weekly earnings or the statutory flat rate. For 6 April 2026 to 5 April 2027, that flat rate is £123.25.
What changed on 6 April 2026
The lower earnings limit was removed. Previously, an employee generally had to meet an earnings threshold to qualify; now low-paid eligible employees can receive SSP. Waiting days were also removed, so SSP is payable from the first full working day that qualifies within a period of incapacity for work rather than beginning on the fourth qualifying day.
The rate has two parts. Calculate 80% of the employee's average weekly earnings, then compare it with £123.25 for the 2026–27 tax year. Pay the lower figure. That means an employee with average weekly earnings of £145 would receive £116 for a full SSP week, while an employee whose 80% figure exceeds the cap would receive no more than £123.25 for that week.
The annual flat rate can change, so do not hard-code £123.25 into permanent contract wording. State the entitlement by reference to the statutory scheme and keep current figures in payroll guidance or a dated policy note.
Identify qualifying days correctly
SSP is paid for qualifying days—normally the days the employee is contracted to work. All calendar days of sickness, including weekends and bank holidays, can count when establishing the period of incapacity, but payment is made only for qualifying days.
For a partial week, HMRC's method divides the applicable weekly SSP rate by the number of qualifying days in that week and multiplies it by the qualifying days of sickness. Irregular patterns need careful setup. Agree a lawful qualifying-day approach, make sure payroll has the working pattern and retain the calculation.
Average weekly earnings are based on earnings liable for Class 1 National Insurance, or that would be liable if earnings were high enough, during the relevant period. Salary sacrifice, variable pay and linked sickness periods can affect the result. HMRC says periods of incapacity separated by 56 days or less are generally linked, and the rate set at the first linked period can continue to apply.
Handle transition cases carefully
Special rules applied where an absence began before 6 April 2026 and continued afterwards. HMRC's transitional guidance protects some employees whose pay would otherwise have fallen when the percentage method began. Do not recreate a historic transition calculation from memory; use the official guidance and preserve the payroll evidence.
For new absences under the current rules, record the first full day of sickness, contracted qualifying days, average weekly earnings calculation, applicable weekly rate, paid qualifying days and any linked period. Check the latest HMRC rate whenever an absence crosses a tax-year boundary.
Update reporting and evidence procedures
The payment change does not remove the need for a clear absence process. Tell employees who to contact, by what time and what information they should give. Avoid requiring unnecessary medical detail. Managers should record the absence consistently and send the information to payroll without sharing sensitive health information more widely than needed.
Self-certification and fit-note rules remain relevant. Explain when evidence is needed, how it should be supplied and who can access it. A late report should be investigated fairly; avoid automatically withholding statutory pay without checking the SSP rules and the reason for delay.
A return-to-work conversation can confirm the dates, identify support and consider whether the absence might relate to disability, pregnancy, workplace injury or another protected matter. Keep it supportive rather than disciplinary. Repeated short absences may require management, but triggers should prompt a conversation, not an automatic sanction.
Align contracts, policies and payroll
Search existing documents for references to waiting days, the old lower earnings limit or an outdated flat rate. Check:
- employment contracts and offer templates;
- sickness absence and reporting policies;
- payroll rules and outsourced-provider configuration;
- manager scripts, forms and return-to-work records;
- workforce communications and intranet guidance.
If the business offers contractual sick pay above SSP, explain how the two interact. Usually SSP forms part of the total contractual payment rather than being added on top, but the wording and scheme rules must be clear. State eligibility, duration, evidence requirements and any discretion without suggesting statutory rights can be removed.
When creating terms for a new hire, start the employment contract builder and make sure the selected sick-pay wording reflects the actual employer scheme. Detailed reporting steps can sit in a non-contractual handbook, provided the contract points employees to the current procedure.
Employer checklist
- Confirm payroll uses the lower of 80% of average weekly earnings and the current flat rate.
- Pay from the first full qualifying day for eligible absences.
- Include employees who would previously have fallen below the earnings threshold.
- Check qualifying days and linked periods rather than assuming a standard Monday-to-Friday week.
- Update old policies, contracts and manager materials.
- Retain calculations and restrict access to health data.
- Review disability and reasonable-adjustment implications before attendance action.
- Check HMRC guidance at each tax-year change.
This guide provides general information for UK employers, not legal or payroll advice. SSP eligibility and calculations depend on the facts. Use HMRC's calculator or seek payroll advice for irregular work, salary sacrifice, linked periods or transitional cases.