Statutory Sick Pay is changing from April 2026—but what do you need to know?
Following the unveiling of the Employment Rights Bill—an effort to support millions of workers across the UK, especially those on lower incomes or with health conditions—significant reform is likely coming to Statutory Sick Pay (SSP) in 2026.
While the Bill has not yet received Royal Assent, it’s highly likely that it will.
The SSP reform will aim to make sick pay more accessible and inclusive to all working individuals. But what does this mean for employers?
What's changing from April 2026?
From April 2026, the following changes are proposed to come into effect:
- Day one entitlement: SSP to now be available from the first day of absence, eliminating the three unpaid waiting days as in the current system, which helps alleviate financial pressure.
- Pay based on earnings: Statutory sick pay will be calculated as a percentage of your employees’ usual income (80% of your weekly earnings) if this is less than the flat weekly amount. This ensures that SSP remains affordable for employers, while providing more meaningful income protection for lower earners.
- Removal of the lower earnings limit: Currently, employees must earn above the lower earnings limit (LEL) to qualify for SSP. In 2026, this will be removed, meaning that all employees are entitled to SSP.
What does the SSP reform mean for employers?
With a proposed implementation date of 6th April 2026, employers have time to prepare for these changes, including:
- Reviewing any sickness and absence policies you currently have in place and updating where necessary,
- updating employment contracts where SSP eligibility or waiting days is referenced,
- making sure your payroll and HR systems are ready for the new rules and,
- budgeting for increased sick pay costs, especially for lower-income or part-time workers.
With estimated costs reaching the millions, around £500 million or £15 per employee to be exact, it’s important to consider the positive implications of the SSP reform:
- A happier and more productive workforce: employees can take the time they need without worrying about their finances, boosting their happiness and trust in their workplace.
- Inclusivity: the reform supports a fairer and more inclusive work culture that supports greater inclusivity, including those with health conditions.
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One consequence of this amendment is a shift in behaviour around short-term absence. Currently, employees only receive SSP from Day 4—so in effect, this discourages employees to take a short absence of 1-3 days if they are not being paid. Many may extend it to 4 in order to receive SSP.
For example:
If an employee is currently off for 2 days, they do not receive any SSP. After the change to the Bill, they will receive 2 days of SSP.
Making sick pay accessible
Changes to employment legislation can be tricky to navigate. But, when they come with significant positives like a happier, productive, and inclusive workplace, it’s a change to welcome, not just a compliance box to tick. Luckily for you, you have until 2026 to make the necessary changes!
At Cintra, we’re here to support you in the SSP reform, ensuring your payroll processes are up-to-date and compliance ready with a suite of up-to-date and compliant policies; absence how-to-guides and processes for managing all kinds of absence.
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For tax purposes, statutory sick pay is handled the same as regular income, meaning income tax and National Insurance contributions are deducted from SSP entitlements. Employers should ensure appropriate processing is made through payroll systems ready for when the changes come into effect.
Following the new rules, SSP will vary per employee. Now, based on their income, individuals will likely receive 80% of their weekly income—or the flat weekly amount of £118.75 if this is less.
