Is your payroll ready for these changes to Statutory Sick Pay?
“Q: I’ve heard there are some upcoming amendments to Statutory Sick Pay. What are the major changes I should be aware of?”
One of several changes introduced by the Employment Rights Act 2025 was an amendment to the way that Statutory Sick Pay will function for UK employers.
“A: In short, SSP will be available for more employees and will also be available from day one of sickness absence.”
Let’s look in more detail at what these changes to Statutory Sick Pay will mean for your SSP procedures and payroll processes:
Removal of the Lower Earnings Limit
All eligible employees will be entitled to SSP regardless of income. SSP will be paid at 80% of normal weekly earnings or the uprated weekly flat rate of £123.25, whichever is lower.
Removal of the Waiting Period
SSP will be paid from the first full day of sickness absence, not from day four.
These changes make SSP more accessible and remove barriers for lower-paid employees, and will apply across the United Kingdom, including Northern Ireland. The relevant legislation will apply as to when the sickness absence took place.
Absences starting before 6 April 2026 will follow the current system to determine eligibility and payment. Absences starting on or after 6 April 2026 will use the new rules, unless otherwise outlined in legislation.
Helping you plan for the changes to SSP
To be ready for these amendments to SSP, you’ll need to update your payroll processes to account for the wider eligibility requirements and the ‘day one’ SSP payments.
