Statutory Sick Pay: employer guide

How Statutory Sick Pay works for employers: day-one eligibility, no waiting days, no lower earnings limit, and the percentage-based rate calculation. Includes payroll system requirements, rate calculation examples, and compliance checklist.

UK-wide
Guide summary

From 6 April 2026, you must pay Statutory Sick Pay (SSP) to all employees from their first day of sickness, no matter how much they earn. You need to update your payroll system to calculate SSP as 80% of weekly earnings or the flat rate, whichever is lower. Check and update your sickness policies to remove old rules about waiting days and minimum earnings.

  • Pay SSP from first day of sickness from 6 April 2026
  • All employees eligible regardless of earnings
  • Calculate 80% of employee's weekly earnings
  • Compare to flat rate (£123.25/week for 2026/27)
  • Pay the lower of the two amounts
  • Update payroll system to remove waiting days
  • Remove lower earnings limit checks
  • Review and update sickness absence policies
  • Train managers on new SSP rules
  • Expect higher SSP costs due to more eligible staff
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UK-wide

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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.

Ensure your payroll is up to date: All employers must have payroll systems and policies that reflect the current SSP rules. Low-paid employees who were previously ineligible now qualify for SSP.

How SSP works

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

No waiting days
SSP is payable from day one of sickness (there are no unpaid waiting days)
No lower earnings limit
All employees are eligible regardless of earnings
Rate calculation
80% of weekly earnings OR the flat rate, whichever is lower

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

Contact your payroll provider: If you use payroll software or an outsourced payroll service, confirm they are configured correctly for the current SSP rules.

Rate calculation examples

Employee earning £500/week
80% = £400. Flat rate = £123.25. Pay £123.25
Employee earning £200/week
80% = £160. Flat rate = £123.25. Pay £123.25
Employee earning £150/week
80% = £120. Flat rate = £123.25. Pay £120
Employee earning £100/week
80% = £80. Flat rate = £123.25. Pay £80

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
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