New Statutory Sick Pay (SSP) Rules: What You Need to Know

New Statutory Sick Pay (SSP) Rules: What You Need to Know

Under current HMRC rules, most employees can get Statutory Sick Pay (SSP) if they’re too sick to work. It is paid by the employer and can be claimed for up to 28 weeks. Currently, employees must have been off sick for at least 4 days in a row (including non-working days), and earn at least the Lower Earnings Limit to qualify. SSP is not paid for the first 3 working days, called Waiting Days.

Changes From April 2026

From April 2026, there will be key changes all employers need to be aware of and take action.

The HMRC has provided guidance in the Employer Bulletin and supporting documents which explain key reforms being introduced through the Employment Rights Act 2025.

1. SSP from Day One

The current waiting period - where SSP only starts from the fourth day of sickness - will be removed. From 6 April 2026, eligible employees will be able to receive SSP from their first full day of sickness absence.

2. Earnings Threshold Removed

The requirement to earn at or above the Lower Earnings Limit to qualify for SSP will be abolished. This means all eligible employees, regardless of how little they earn, can receive SSP when they’re off sick.

3. How SSP Is Calculated

Under the new rules SSP will be paid as the lower of:

  • 80% of the employee’s average weekly earnings, or
  • The statutory flat rate, which is updated annually; HMRC currently shows the flat rate for 2026/27 as £123.25.

This hybrid approach means lower-paid workers can get a proportion of income when off sick rather than being excluded.

Transitional Arrangements

Employees who are receiving SSP before 6 April 2026 and remain off sick may continue to receive the flat rate until certain conditions end (such as return to work or the SSP entitlement period ending).

Some aspects of SSP remain consistent with HMRC’s existing rules:

  • Linked periods of sickness (absences within a set number of days count as continuous).
  • Maximum SSP entitlement of up to 28 weeks.

What action do you need to take?

These changes are part of HMRC’s implementation of legislative reforms aimed at strengthening the social safety net and ensuring broader access to sick pay. Employers will need to update payroll processes and policies in line with the updated HMRC guidance ahead of April 2026.

.