Essential Improvements to Statutory Sick Pay from April 2026
From 6 April 2026, significant reforms to Statutory Sick Pay (SSP) will come into effect, bringing important changes for both employers and employees.
What’s changing?
The new rules are designed to make SSP more accessible and straightforward:
- SSP will be payable from day one of sickness
The three “waiting days” are being removed, meaning employees will be entitled to SSP from the first day they are off sick. - Earnings threshold removed
The requirement to earn at least £123 per week to qualify for SSP is being All eligible employees will now be entitled to SSP, regardless of their earnings.
New SSP Calculation
Under the new system, Statutory Sick Pay will be paid at the lower of:
- 80% of the employee’s average weekly earnings (AWE), or
- The standard SSP rate of £123.25 per week
Examples
Here are some examples of how the new calculation works in practice:
Example 1
- Average weekly earnings: £300
- 80% of AWE: £240
- SSP cap: £123.25
- SSP payable: £123.25 per week
Example 2
- Average weekly earnings: £140
- 80% of AWE: £112
- SSP cap: £123.25
- SSP payable: £112 per week
Example 3
- Average weekly earnings: £100
- 80% of AWE: £80
- SSP cap: £123.25
- SSP payable: £80 per week
Is there any transitional protection?
If an employee is already receiving SSP before 6 April 2026 and the new 80% calculation would reduce their entitlement, they may be protected and continue to receive the full SSP rate of £123.25 until their current sickness period ends.
How are AWE calculated?
Average weekly earnings are based on the 8 weeks leading up to the first day of sickness.
Increased enforcement
Alongside these changes, the new Fair Work Agency will launch in April 2026. This body will oversee SSP compliance, as well as enforcement of holiday pay and National Minimum Wage rules indicating a stronger focus on employer accountability.
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