Statutory Sick Pay (SSP) is the minimum statutory payment an employee is entitled to when they are unable to work due to illness, usually paid from the fourth day of absence when they earn above the 'Lower Earnings Limit' (LEL; currently £125 per week).
From 6th April 2026 SSP will be payable from the first day of sickness absence to all employees at a flat rate of either £123.23 per week, or 80% of their average weekly earnings, whichever is lower.
The current position: SSP rules before April 2026
Employees are entitled to £118.75 per week SSP if they are too ill to work, paid for up to 28 weeks. To be eligible the individual must:
- Be classed as an employee (or agency worker), and has done some work for the employer
- Earn an average of at least the Lower Earnings Limit – currently £125 per week
- Have been ill for more than 3 days in a row (including non-working days)
- Must inform their employer before the deadline they have set (or within 7 days of falling ill if no policy exists)
To check whether the average weekly earnings meet the requirement, use a reference period of the 8-weeks immediately preceding the start of incapacity - though an employee may still be eligible even if they haven't yet completed 8 weeks of work.
SSP is paid for all the days they are off sick on qualifying days (days that they normally would have worked), except the first 3 waiting days.
To calculate the SSP daily rate, divide the weekly flat rate by the number of qualifying days. For example if an employee usually works 5 days per week their daily SSP rate would be £23.75 (£118.75 divided by 5 qualifying days).
If an employee has received SSP and returns to work, then become ill again within 8 weeks they would be eligible for SSP from the first day of the new absence. This is called a 'linked absence', allowing them to be treated as one continuous period for SSP. For example:
- An employee is absent for 5 days - after the first 3 waiting days, they would be eligible for SSP on 2 days
- After returning for 10 days the employee is then absent for a further 5 days - they would be eligible for SSP from the first day, for a total of 5 days. This is a linked absence as it occurred within 8 weeks of SSP being paid, even if the reason for absence is different
- The employee returns with perfect attendance for 3 months before being absent for a further 5 days - 3 waiting days would apply, so they would be eligible for SSP on 2 days. As this absence occurred more than 8 weeks since last being paid SSP, it is no longer considered a linked absence
Employees do not qualify if they are in receipt of Statutory Maternity Pay, or have received the maximum amount of SSP (28 weeks).
The changes from 6th April 2026:
Employees already receiving SSP on 6th April 2026 will continue to receive the flat rate until they return to work or exhaust their 28 week entitlement.
The rate of SSP will be the lower of:
- £123.25 per week, or
- 80% of their average weekly earnings
This will be paid from the first day of sickness absence on qualifying days for up to 28 weeks.
This means that waiting days and linked absences will no longer be relevant.
What stays the same:
SSP will still be paid in the same way as normal wages, subject to Tax and National Insurance deductions.
Employees will still be able to self-certify the first 7 days of sickness absence (including non-working days), and will be required to provide medical evidence such as a Fit Note from their GP to verify absences longer than this.
These changes prospectively make the rules simpler to understand, though may increase the cost of short absences which may not have qualified for SSP under the old (current) rules. The Government estimates the changes will increase employer costs by around £38 per employee, though actual costs will depend on workforce patterns and absence levels.
In preparation for these changes, it is advisable to update policies and contracts, review payroll and HR systems, strengthen absence management and train managers. By implementing robust absence management processes, and seeking advice early from your Wirehouse Consultant, sickness absence can be kept at manageable levels.
