From 6 April 2026, the Employment Rights Act 2025 will introduce significant reforms to Statutory Sick Pay (SSP). These changes will affect every employer across the UK, including Northern Ireland, and will require updates to your policies, payroll processes and absence management approach. Here’s what you need to know and what to do next.
What’s Changing?
1. SSP Payable from Day One
The current three-day waiting period will be removed. From April 2026, SSP will be payable from the first full day of sickness absence, rather than from day four. This means employers will now pay SSP for short-term absences that may previously have gone unpaid.
2. Removal of the Lower Earnings Limit
The Lower Earnings Limit is being abolished. All eligible employees, including part-time, low-paid and casual workers, will now qualify for SSP, regardless of their earnings. This significantly widens eligibility and increases employer responsibility.
3. New SSP Calculation Method
SSP will be calculated as the lower of:
- 80% of an employee’s Average Weekly Earnings (AWE)
- The flat weekly SSP rate (rising to £123.25 per week)
SSP will continue to be based on average weekly earnings, typically calculated over the eight weeks prior to the sickness absence.Â
When Do the New Rules Apply?
If an employee is already receiving SSP before 6 April 2026, transitional protections will apply. They will remain under the current system for the remainder of their 28-week entitlement, provided they do not return to work or terminate their employment.
The key factor will be the start date of the sickness absence:
- Absences starting before 6 April 2026 means current SSP rules apply
- Absences starting on or after 6 April 2026 means New SSP rules apply
What This Means for Employers
These reforms will make SSP more accessible and remove barriers for lower-paid workers, but they will also increase employer costs and administrative responsibility.
In particular, the removal of waiting days may result in:
- Increased short-term absences
- Higher payroll costs
- Greater need for consistent attendance management
Managers must be confident in applying absence procedures fairly and consistently. This includes:
- Conducting structured return-to-work interviews
- Monitoring absence patterns
- Intervening when absence thresholds are reached
- Applying policies consistently across the workforce
Providing training and clear guidance to line managers will be essential to maintaining both productivity and fairness.
What About Self-Certifications?
At present, there is no formal legislative change regarding self-certification. Best practice remains that employees should complete a self-certification form for short-term absence (commonly up to seven calendar days). We recommend requesting self-certification from day three as part of good absence management practice.Â
How Employers Should Prepare Now
With April 2026 approaching, employers should begin preparing immediately.
Practical steps to take:
- Review and update sickness absence policies
- Amend contracts and employee handbooks to reflect day-one SSP
- Ensure payroll systems can calculate percentage-based SSP
- Forecast and budget for increased SSP costs
- Communicate changes clearly to employees
- Provide training for managers on attendance management
If your organisation does not operate a company sick pay scheme, the financial impact could be more significant, particularly due to increased eligibility and the removal of waiting days. Early preparation will reduce compliance risk and protect your business from unexpected cost pressures.
Need Support?
The changes to Statutory Sick Pay are significant but they are just one of many reforms being introduced under the Employment Rights Act 2025.
With wider updates affecting contracts, absence management, flexible working, and employee protections, employers need to take a joined-up approach to compliance. Focusing on SSP alone may leave gaps elsewhere.
If you would like a clear overview of all upcoming employment law changes, download our Manager’s Guide to the Employment Rights Act 2025, which breaks down what’s changing and what action you need to take.
For tailored advice specific to your business, speak to our expert HR team today on 028 2564 4110. We’ll help you prepare with confidence and ensure you stay fully compliant.