As part of the roadmap implementing changes to the Employment Rights Act 2025, employers need to consider now how they are going to implement the changes to Statutory Sick Pay (SSP).
Key changes to SSP from 6 April 2026
- Removal of lower earnings limit (LEL) – all employees will be entitled to SSP regardless of earnings.
- Rate of SSP – flat rate of £123.25 per week or 80% of average weekly earnings (AWE), whichever is lower.
- Waiting days removed – SSP will be payable from the first full day of sickness not day 4 as is currently the case.
- There is no change to linked periods of sickness. Absences within 56 days are treated as one continuous period with SSP payable for 28 weeks.
Transitional Protection for employees already off sick on 6 April 2026
- For employees already on SSP prior to 6 April and still absent at that date, SSP will continue at the uprated flat rate until they return to work, end entitlement when Statutory Maternity Pay (SMP) commences, exhaust entitlement or contract ends.
- Employees with an AWE rate between £125 and £154.05 will receive the flat rate of £123.25 per week during their continuous absence period if they were off sick and in receipt of SSP before 6 April 2026.
- Employees earning below the LEL (£125 per week currently/£129 per week from 2026/27) who are off sick on or after 6 April will become eligible for SSP.
Employer Checklist
Prior to the changes, employers need to consider their current policies and plan ahead:
- Ensure your HR policies reflect the new eligibility and payment rules with the removal of any reference to waiting days.
- Consider if your payroll system, if processing in-house, can manage the 80% v flat rate calculation – speak to software suppliers if needed.
- Understand the transitional arrangements and apply accordingly.
- Consider your absence recording policy (DSG will provide further instruction regarding recording procedures if using our payroll services).
- Communicate any changes to staff prior to 6 April and update any handbooks.
How can DSG Help?
Our Payroll Team at DSG can support your business to ensure you are meeting your payroll obligations. If you want to speak to a member of the team about the changes, please contact us.