SSP Changes April 2026: A Complete Employer Guide

Statutory Sick Pay (SSP) is changing fundamentally in April 2026. The reforms, introduced through the Employment Rights Act 2025, abolish the three-day waiting period, remove the lower earnings limit and increase the weekly rate. Together, these changes represent the biggest overhaul of SSP since its introduction in 1983.

For employers, this means more employees will be eligible for SSP, payments will start sooner, and the administrative burden of managing sickness absence will shift. This guide explains every change in detail and sets out what you need to do to prepare your payroll, absence tracking and management processes.

What Is Changing: The Three Key Reforms

1. Removal of the Three-Day Waiting Period

Current position: Under the existing rules, SSP is not payable for the first three “qualifying days” of a period of incapacity for work. Employees only start receiving SSP from the fourth day of sickness absence.

What is changing: From April 2026, SSP will be payable from day one of sickness absence. The three-day waiting period is being abolished entirely.

Why it matters: The waiting period has long been criticised for penalising low-paid workers who cannot afford to lose three days’ pay, forcing some to attend work while ill. The reform aims to reduce “presenteeism” — the problem of sick employees coming to work because they cannot afford not to — which costs the UK economy an estimated £29 billion per year according to the Institute for Public Policy Research.

2. Removal of the Lower Earnings Limit

Current position: Employees must earn at least the lower earnings limit (LEL) — currently £123 per week — to qualify for SSP. This excludes approximately 1.3 million workers, disproportionately affecting part-time workers, women and younger employees.

What is changing: The lower earnings limit for SSP eligibility is being removed entirely. All employees, regardless of their earnings level, will be entitled to SSP provided they meet the other eligibility criteria (i.e. they are an employee, they are sick for at least one day, and they have notified their employer).

For lower-paid employees whose normal weekly earnings are below the standard SSP rate, a reduced rate will apply — calculated as a percentage of their average weekly earnings rather than the full flat rate.

Why it matters: This brings approximately 1.3 million additional workers into SSP eligibility. If you employ part-time, casual or lower-paid workers, you will have new SSP obligations that did not previously exist.

3. SSP Rate Increase

New rate from April 2026: SSP increases to £123.25 per week (up from £116.75 in 2024/25). This rate applies for up to 28 weeks in any period of incapacity for work, as before.

For employees earning below this amount, the percentage-based reduced rate will apply to ensure SSP does not exceed their normal earnings.

Who Is Affected

Employers With Part-Time or Low-Hours Workers

The removal of the lower earnings limit is the change that will affect the most employers. If you currently have workers who earn below £123 per week — including:

• Part-time employees working few hours
• Workers on zero-hours or low-hours contracts
• Term-time only workers during holiday periods
• Employees in their first week of employment

All of these workers will now be eligible for SSP, and you need to ensure your payroll systems can calculate and process their entitlements correctly.

Employers With High Short-Term Absence

If your organisation experiences frequent short-term sickness absence (1-3 days), the removal of the waiting period will have a direct financial impact. Previously, these short absences often fell entirely within the waiting period, meaning no SSP was payable. From April 2026, every day of qualifying sickness absence will attract SSP.

This makes effective absence management more important than ever. Understanding absence patterns through tools like the Bradford Factor can help you identify and address problematic short-term absence before costs escalate.

Small and Medium-Sized Businesses

The government has acknowledged that these changes will disproportionately affect smaller employers. While the Percentage Threshold Scheme (which allowed small employers to reclaim some SSP costs) was abolished in 2014, the government has indicated it will consider support measures for small businesses. At the time of writing, details of any such support have not been confirmed.

The Financial Impact

Calculating the Cost

To estimate the cost impact for your organisation, consider:

Day-one SSP costs: Review your absence data for the past 12 months. How many sickness absence episodes lasted 1-3 days? Under the current rules, these generate no SSP cost. From April 2026, each day will cost up to £123.25 per week (pro-rated to the daily equivalent of approximately £17.61 per day based on a 7-day qualifying pattern, though the exact daily rate depends on the employee’s qualifying days).

Newly eligible workers: Count the number of employees currently earning below the lower earnings limit. Each of these workers will become SSP-eligible, adding to your potential SSP liability.

Ongoing SSP for longer absences: For absences lasting more than 3 days, the cost increase is the addition of 3 extra days of SSP per absence episode — approximately £52.82 per episode (3 × £17.61).

Offsetting Costs Through Better Absence Management

While the direct costs will increase, employers can offset much of this through improved absence management:

• Reducing presenteeism: When sick employees stay home rather than spreading illness, you reduce the risk of multiple employees being absent simultaneously
• Earlier intervention: With SSP payable from day one, you have both the data and the financial incentive to intervene earlier in absence patterns
• Better tracking: The changes give employers a reason to invest in proper absence tracking, which in turn enables better management of long-term and recurring absence

How to Prepare Your Payroll Systems

Update SSP Calculations

Your payroll system needs to be updated to:

1. Remove the waiting period logic: SSP must be calculated from day one of any period of incapacity for work
2. Remove LEL checks for eligibility: All employees are eligible regardless of earnings
3. Apply the reduced rate: For employees earning below the standard SSP rate, calculate SSP as the prescribed percentage of their average weekly earnings
4. Update the weekly rate: Apply the new £123.25 per week rate from the April 2026 pay period

If you use third-party payroll software, check with your provider about update timelines. Most major payroll providers will release updates before April 2026, but you should confirm this and test the changes before they go live.

Review Your Qualifying Days Pattern

SSP is calculated based on “qualifying days” — the days on which an employee would normally be required to work. With SSP now payable from day one, getting qualifying days right is more important than ever, as errors will affect every absence episode, not just those lasting more than three days.

Ensure your payroll records accurately reflect each employee’s actual working pattern, including:

• Standard full-time patterns
• Part-time patterns (which may vary week to week)
• Shift patterns and rotating rosters
• Term-time or seasonal patterns

A reliable time and attendance system that accurately records working patterns will make SSP calculations far more straightforward.

Updating Your Absence Management Processes

Notification Procedures

With SSP payable from day one, you need clear and efficient sickness notification procedures:

• First day notification: Ensure employees know they must notify you of sickness absence on the first day (or as soon as reasonably practicable)
• Self-certification: Employees can self-certify for up to 7 days. From day 8, a fit note from a doctor is required. This has not changed
• Record-keeping: Every day of absence now has a direct financial consequence, so accurate recording is essential from day one

Absence Tracking and the Bradford Factor

The financial impact of short-term absence increases significantly under the new rules. The Bradford Factor — which calculates a score based on the frequency and duration of absence — becomes an even more valuable management tool.

The Bradford Factor formula (S² × D, where S is the number of absence episodes and D is the total number of days absent) highlights the disproportionate impact of frequent short absences. An employee with 10 single-day absences scores 1,000 on the Bradford Factor, while an employee with one 10-day absence scores just 10.

With SSP now payable from day one, those 10 single-day absences also cost the employer 10 days of SSP — whereas previously, none of those days would have attracted SSP payment. The Bradford Factor helps you identify these patterns early so you can have supportive conversations with employees before absence becomes a serious problem.

Return-to-Work Processes

Effective return-to-work processes are equally important:

• Conduct return-to-work conversations after every absence episode
• Identify any underlying issues that might lead to recurring absence
• Document the conversation and any actions agreed
• Where appropriate, consider reasonable adjustments or phased returns

Managing the Cultural Shift

Addressing Employer Concerns

Many employers worry that day-one SSP will lead to increased absence. The evidence from other countries that have similar provisions (including most EU member states) does not support this fear. Research consistently shows that:

• Presenteeism decreases: Employees who can afford to stay home when sick are less likely to spread illness to colleagues
• Recovery times improve: Employees who rest when first ill tend to recover faster than those who push through
• Trust increases: Employees who feel supported during illness show higher engagement and loyalty

Maintaining Attendance Standards

Day-one SSP does not prevent you from managing absence effectively. You can still:

• Set clear attendance expectations in your policies
• Use trigger points (such as Bradford Factor scores) to initiate formal absence management
• Require sickness notification on the first day of absence
• Conduct return-to-work meetings
• Take disciplinary action for genuine misconduct (e.g. dishonest absence claims)

The key is to be consistent, fair and transparent in your approach. Document your absence management policy and ensure all managers apply it uniformly.

SSP and Other Sick Pay Schemes

Company Sick Pay

If you operate a company sick pay scheme (also known as occupational sick pay or contractual sick pay), review it against the new SSP provisions:

• Waiting periods: If your company scheme includes a waiting period, you may choose to remove it to align with the SSP changes
• Earnings thresholds: If your scheme has different eligibility criteria from SSP, check whether these need updating
• Offsetting: Most company sick pay schemes offset SSP (i.e. SSP forms part of the company payment rather than being additional). Confirm that your scheme documentation reflects this correctly under the new rules

Income Protection Insurance

If you provide group income protection insurance, check with your provider whether the SSP changes affect your policy terms, waiting periods or benefit calculations.

Record-Keeping Requirements

Employers must maintain SSP records for at least 3 years after the end of the tax year to which they relate. Records should include:

• Dates of all sickness absences
• SSP amounts paid and qualifying days
• Any days within a period of incapacity for work that did not qualify for SSP (and the reasons)
• Employee earnings data used to calculate SSP
• Self-certification forms and fit notes

Good record-keeping protects you in the event of an HMRC enquiry and provides the data you need for effective absence management. For a broader look at how reporting requirements connect to workplace compliance, see our guide on RIDDOR reporting for UK employers.

Key Dates and Actions

Action	Deadline
Review current absence data and estimate cost impact	Now
Confirm payroll software update plans with provider	February 2026
Update absence management policies	March 2026
Train managers on new SSP rules and absence procedures	March 2026
Update employee handbook and communications	March 2026
Go live with new SSP calculations	April 2026
Review impact after first quarter	July 2026

Prepare Your Organisation Today

The SSP changes coming in April 2026 require action across payroll, HR, management and employee communications. Employers who prepare early will manage the transition smoothly and may even find that the changes drive improvements in absence management and workplace health.

Start by understanding your current absence patterns and the likely cost impact. Then invest in the systems and processes that will help you manage sickness absence effectively under the new rules. Our Bradford Factor feature helps you monitor absence patterns in real time, while our Time Clock ensures accurate working pattern records for SSP calculations.