From 6th April 2026 there are major changes to the Statutory Sick Pay rules which will affect both employees and employers.
The Key changes are:
- SSP is payable from the first day of sickness – the three waiting days rule is abolished.
- SSP will be payable from day one of sickness instead of the fourth day.
- The previous requirement that employees must earn over £123 per week has been removed.
- All employees are entitled to SSP regardless of their earnings.
New Calculation and Rate of SSP
SSP Will be paid at the lower of:
- 80% of the employees’ average weekly earnings, or
- The SSP weekly rate of £123.25 per week
Please see examples below on how the new SSP will be calculated:
Example 1
- Employee’s average weekly earnings (AWE): £300/week
- 80 % of AWE = £240/week
- Statutory SSP maximum = £123.25/week
Calculation:
- Lower amount = £123.25
- SSP payable: £123.25 for each week sick
Example 2
- AWE: £140/week
- 80 % of AWE = £112/week
- Statutory SSP = £123.25/week
Calculation:
- Lower amount = £112
- SSP payable: £112/week
Example 3
- AWE: £100/week
- 80 % of AWE = £80/week
- Statutory SSP = £123.25/week
Calculation:
- Lower amount = £80
- SSP payable: £80/week
If a worker is already receiving SSP before 6th April 2026 and their 80% calculation would reduce the amount they get, then they may be protected at the new SSP rate of £123.25 until their sickness period ends.
The average weekly earnings calculation is calculated using the 8 weeks before the first day of sickness.
The Fair Work Agency launches in April 2026. They will oversee SSP enforcement, signalling stronger compliance expectations as they are going to be enforcing holidays/national minimum wage as well.
