Statutory Sick Pay: employer guide

From 6 April 2026, Statutory Sick Pay (SSP) becomes payable from the first day of sickness absence to all employees, regardless of earnings. This guide explains the new SSP rules taking effect from that date, how to calculate the rate, and what employers must do to prepare.

How SSP works

There are three key features of the new SSP rules from 6 April 2026:

Who is eligible

Employees covered

• All employees are eligible for SSP from their first day of employment
• Part-time workers earning less than £125/week
• Casual workers with low hours
• Workers on variable pay

All employees benefit from

• SSP from day one of sickness - no unpaid waiting period
• This applies to every period of sickness absence

Payroll system requirements

Your payroll system must be configured to:

1. Pay SSP from first qualifying day: There are no waiting days
2. No minimum earnings test: There is no lower earnings limit for SSP eligibility
3. Calculate 80% rate: For each employee, calculate 80% of average weekly earnings
4. Apply the lower rate: Compare the 80% calculation to the flat rate and pay the lower amount

Rate calculation examples

Policy and procedure updates

Review and update:

• Sickness absence policy: Ensure there are no references to waiting days or a lower earnings limit
• Employee handbook: Update SSP entitlement section
• Manager guidance: Train managers on the current rules
• Payroll procedures: Document the calculation process

Compliance checklist

1. Confirm payroll system is correctly configured for current SSP rules
2. Identify any employees who may not be receiving SSP correctly
3. Update sickness absence policies
4. Communicate SSP entitlements to employees
5. Train payroll staff and line managers
6. Review impact on sickness absence budgets
7. Consider impact on occupational sick pay schemes