The 2026/27 tax year brings the most significant reform to SSP in years, with new rules around eligibility, calculation, and when pay kicks in.
If you’re responsible for payroll or people management, this affects how you process sick pay right now. We’ve pulled everything together here so you’ve got a clear picture of the new rates, who qualifies, and what’s changed—starting from 6 April 2026.
Need a wider view of what’s changing across payroll this year? Our payroll legislation hub has everything in one place.
SSP rates 2026/27
From 6 April 2026, the SSP flat weekly rate rises to £123.25 per week. That’s an increase from £118.75 in 2025/26, and it comes alongside a fundamentally different way of calculating what you actually owe.
This is also accompanied by a larger fundamental change; the removal of the lower earnings limit (LEL) to qualify for SSP. This means that all employees will now be entitled to financial support when they are ill, creating a more inclusive environment.
But here’s another key thing: from this year, SSP isn’t simply a flat rate everyone gets. It’s now the lower of either £123.25 per week or 80% of the employee’s average weekly earnings (AWE). So for many lower-paid employees, their SSP will actually be less than £123.25—and that’s by design, to make sure the system is proportionate rather than excluding people altogether.
The daily rate depends on how many qualifying days (the days an employee would normally work) they have each week. Here’s the breakdown based on the flat rate cap of £123.25:
| Unrounded daily rates | Number of qualifying days in a week |
|---|---|
| £17.6071 | 7 |
| £20.5416 | 6 |
| £24.65 | 5 |
| £30.8125 | 4 |
| £41.0833 | 3 |
| £61.625 | 2 |
| £123.25 | 1 |
The new dual-rate calculation explained
To work out what an employee is owed, you’ll need their average weekly earnings. These are calculated based on the eight weeks of pay before the sickness absence starts (or the two most recent monthly payslips for monthly-paid employees).
Here’s how the two scenarios play out in practice:
- Higher earner: If 80% of an employee’s AWE comes to more than £123.25, you pay the flat rate of £123.25. For example, an employee earning £300 per week would have an AWE-based rate of £240—so you’d pay £123.25.
- Lower earner: If 80% of their AWE is less than £123.25, you pay 80% of their AWE. For example, someone earning £100 per week would receive £80 in SSP, not the flat £123.25.
This is an important shift. Previously, employees earning below the Lower Earnings Limit (LEL) got nothing at all. Now, they get something—proportionate to what they earn.
Who's eligible for SSP?
With the LEL removed, the eligibility criteria are slightly simpler. From 6 April 2026, an employee qualifies for SSP if they:
- Have an employment contract
- Have done some work under that contract
- Are absent from work due to illness for at least one full qualifying day
- Follow the notification and evidence requirements set by their employer
Transitional rules: what applies to ongoing absences?
This is where it gets a little more detailed, but it matters. If an employee was already off sick before 6 April 2026, the transitional rules apply.
Here’s what you need to know:
- Employees already receiving SSP before 6 April 2026 should receive the new rate from 6 April 2026 onwards.
- If an employee’s AWE-based rate would be lower under the new rules than what they were receiving, they’re protected during the ongoing absence—they continue on the flat rate of £123.25 for that period.
- Employees whose continuous sickness started before 22 September 2025 don’t automatically become eligible for SSP from 6 April 2026.
- If an employee returns to work after 6 April 2026 and then goes off sick again within 56 days (a linked period), the new calculation rules apply to the second absence.
This is definitely an area where getting your payroll system set up correctly matters. The GOV.UK employer guidance on SSP includes further detail.
Automate your 2026/27 SSP calculations
Statutory sick pay needn’t be complicated. With Cintra, your rates and thresholds are always up-to-date with the latest legislation, and your calculations fully automated—so you never have to worry about staying compliant.
Whether you outsource payroll or need in-house payroll software, you’re covered across all your occupational sick schemes! Get in touch to find out more.
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