Statutory sick pay changes 2026

As of 6 April 2026, statutory sick pay (SSP) in the UK changed in ways that affect both workers and employers. While organisations will need to make practical adjustments, the reforms also present a chance to:

• improve absence management
• support employee wellbeing
• foster an inclusive workplace culture

The changes

From 6 April 2026, the key changes to statutory sick pay are:

• payment from day one – statutory sick pay is payable from the first day of sickness, removing the 3 'waiting days'
• removal of the lower earnings threshold – more workers, including part-time and lower-paid staff, now qualify
• calculation linked to earnings – statutory sick pay is the lower of 80% of average weekly earnings or the statutory weekly rate, making pay fairer for those with lower or variable incomes

These reforms aim to provide more reliable and inclusive support to workers when they are unwell.

Implications for employers

The reforms will have a direct impact on employer costs and processes. The government estimates these changes will increase employer statutory sick pay costs by around £450 million per year. Although this equates to roughly £15 more per employee, so for most organisations the individual impact is manageable.

The bigger practical challenge is operational. Payroll systems will need to be updated to reflect day one entitlement and the new earnings-linked calculation.  Absence policies may need revision to ensure they still reflect the rules accurately. Managers will also need guidance on communicating the changes to staff, applying them consistently, and keeping clear records of sickness absence from day one. This matters more than ever now that the 3 day waiting buffer is gone.

Practical tip: Audit your payroll system now to identify staff newly eligible for statutory sick pay and ensure calculations align with the new rules.

Implications for employees

Around 1.3 million low-paid employees currently receive no statutory sick pay at all. Many more lose income during short absences because of the 3 waiting days. The reforms address both of these gaps. Removing the Lower Earnings Limit means that part-time and lower-paid workers, who are disproportionately women, will qualify for the first time.

Removing waiting days means employees no longer face a financial penalty for short-term illness. This removes a significant pressure to come into work when unwell. Linking statutory sick pay to earnings (for lower rate earners) rather than a flat rate also gives employees a clearer, more predictable picture of what they will receive.

Benefits of adopting best practice

Getting the legal minimum right is the starting point. But, employers who go further and adopt a genuinely thoughtful approach to sickness absence tend to see wider benefits.

Employees who feel supported when they are unwell are more likely to recover properly and return to full productivity, rather than dragging themselves in before they are ready and extending the problem.

Clear and fairly applied absence policies also build trust. That matters for retention. From a risk management perspective, well-documented processes reduce the chance of errors, disputes, or tribunal claims. Particularly as the new Fair Work Agency will have enforcement powers over statutory sick pay from April 2026.

In practical terms, good practice looks like this:

• update policies and employee handbooks to reflect new statutory sick pay rules
• communicate clearly with staff about their entitlement
• train managers on handling absence consistently, fairly and with good record keeping
• use absence data to identify patterns and provide early support for frequent short-term sickness

Making sure you are ready

To be ready for the statutory sick pay changes, ensure you:

1. audit eligibility and absence records – know which staff are newly covered
2. update payroll and HR systems – ensure accurate calculation and reporting
3. review and revise policies – ensure absence policies reflect the new statutory sick pay rules
4. train managers – ensure consistent and fair application
5. communicate with staff – provide clear guidance on entitlements
6. take advice if you are not sure

The statutory sick pay reforms are more than administrative updates. They are an opportunity to strengthen wellbeing, fairness, and productivity across your organisation. Employers who plan ahead and embed best practice can navigate the changes smoothly while benefiting both staff and the wider business.