KEY CHANGES TO STATUTORY SICK PAY FROM APRIL 2026

ASESA Solutions Ltd - KEY CHANGES TO STATUTORY SICK PAY FROM APRIL 2026

From 6 April 2026, significant reforms to Statutory Sick Pay (SSP) have come into effect under the Employment Rights Act 2025, impacting both employers and employees across the UK.

SSP Payable from Day One

The key change is that SSP is now payable from the first day of sickness absence, removing the previous three-day waiting period.

Expanded Eligibility

The Lower Earnings Limit has been abolished, meaning more employees are now eligible for SSP regardless of their income level.

How SSP is Calculated

SSP will be calculated as 80% of average weekly earnings or the statutory flat rate (£123.25), whichever is lower.

These changes increase accessibility for employees while requiring employers to review payroll processes and ensure compliance.

Understanding the Calculation & Application

For employees with irregular or variable pay, SSP is calculated using average weekly earnings based on recent pay periods (typically an 8-week reference period) before the sickness absence.

Applicability & Transition Rules

These changes apply across the United Kingdom, including Northern Ireland.

The legislation is applied based on when the sickness absence occurs:

• Absences starting before 6 April 2026 will follow the previous SSP rules

• Absences starting on or after 6 April 2026 will follow the new regulations, unless otherwise specified in legislation

  
  

Conclusion

These reforms make Statutory Sick Pay more accessible and remove barriers for lower-paid employees. Employers should take proactive steps to update payroll systems and ensure compliance with the new requirements.