Day-One Statutory Sick Pay from April 2026

From 6 April 2026, statutory sick pay (SSP) is payable from the first day of absence. The three-day waiting period is removed, the lower earnings limit is abolished, and an estimated 1.2 million low-paid and part-time workers become entitled to SSP for the first time. This is the most substantial change to SSP since the scheme was introduced in 1983.

The change is part of the Employment Rights Act 2025 package taking effect on 6 April 2026. Enforcement transfers from HMRC to the new Fair Work Agency on the same date, so employers face a stronger compliance regime as well as new substantive obligations.

Source: The Guardian, Sick pay rule changes benefit UK workers (TUC) and GOV.UK, Statutory Sick Pay (employers).

Why This Matters

Up to 6 April 2026, an employee earning below £125 per week (the lower earnings limit) had no entitlement to SSP at all. The first three days of any sickness absence were unpaid waiting days, and SSP only became payable from day four.

From 6 April 2026, both of those gates are removed. SMEs and businesses with high proportions of part-time, casual, or low-paid staff (retail, hospitality, social care, and cleaning are obvious examples) will see the largest immediate cost impact.

Employers who have relied on the three waiting days to discourage short absences will need to rethink absence management. The right framework now is good capability and absence procedures, not the gap before SSP began.

What Is Changing on 6 April 2026

Three things change on the same date:

SSP becomes payable from day one of sickness absence. The three waiting days are abolished.
The lower earnings limit is removed. Employees earning less than £125 per week become eligible for SSP for the first time.
SSP is paid at the lower of £123.25 per week or 80% of the employee's average weekly earnings. The 80% cap protects employers from over-paying low earners (where flat-rate SSP would otherwise exceed normal wages) and ensures lower-paid workers receive a meaningful proportion of their normal pay.

For the broader set of changes taking effect on the same date, see our Employment Rights Act 6 April 2026 employer checklist.

How the 80% Rule Works in Practice

The new calculation is the lower of £123.25 per week or 80% of average weekly earnings. The intention is to ensure SSP never exceeds the employee's normal wage and that lower earners receive a meaningful proportion of their pay.

Worked example 1: an employee earning £200 per week. 80% is £160. £123.25 is lower, so SSP is paid at £123.25 per week.

Worked example 2: an employee earning £100 per week. 80% is £80. £80 is lower, so SSP is paid at £80 per week.

Worked example 3: an employee earning £160 per week. 80% is £128. £123.25 is lower, so SSP is paid at £123.25 per week.

Payroll systems need to perform this two-step calculation for every SSP payment. The previous flat-rate model is gone.

What Employers Must Do Before 6 April 2026

Reconfigure payroll to apply the day-one rule, remove the LEL gate, and run the lower-of-£123.25-or-80% calculation. Most cloud payroll providers will issue an update; verify yours has done so.
Update your SSP and sickness absence policy to reflect day-one payment, removal of waiting days, removal of the LEL, and the 80% calculation rule.
Update employment contracts that reference the three waiting days or the lower earnings limit. Standard wording in older contracts often quotes the old rules verbatim.
Update the employee handbook sickness absence section to match the new rules.
Train line managers on absence reporting under the new rules. Day-one SSP changes the calculation but does not change the importance of return-to-work conversations and absence triggers.
Implement record-keeping if not already in place. The Fair Work Agency expects documented evidence of every SSP payment, calculation, and fit note received.
Communicate the change to staff in writing. Lower earners who were previously ineligible for SSP need to know they now qualify.

Sickness Absence Reporting Under the New Rules

The day-one rule changes how short absences are paid, but the existing self-certification framework is unchanged. For absences of 7 calendar days or fewer (including weekends and non-working days), employees can self-certify using form SC2 or your equivalent.

For absences longer than 7 days, a fit note from a GP, hospital doctor, registered nurse, occupational therapist, pharmacist, or physiotherapist is required. The list of professionals who can issue fit notes was expanded by DWP guidance in 2022.

Employers can still operate trigger-based absence management procedures (Bradford factor, return-to-work interviews, capability processes) provided they apply consistently and avoid disability discrimination.

Linked Periods of Incapacity for Work

Two or more periods of incapacity that are at least 4 days each and separated by 8 weeks or less are linked and treated as a single period for SSP purposes. The 28-week SSP maximum runs across the linked PIW, not each individual absence.

This linking rule continues from 6 April 2026, but with no waiting days, the practical effect is that an employee with frequent short absences receives SSP from day one of every absence in the linked period.

This makes accurate absence records more important, not less. The Fair Work Agency will expect employers to be able to evidence the start and end of every PIW and how SSP was calculated for it.

Maximum SSP Duration

SSP is payable for up to 28 weeks of sickness absence in a single linked PIW. After 28 weeks, the employer is no longer obliged to pay SSP and the employee may need to apply for Employment and Support Allowance or Universal Credit. The 28-week cap is unchanged on 6 April 2026.

Interaction With Company Sick Pay Schemes

Many employers operate enhanced (occupational) sick pay schemes that pay full or partial pay for an initial period of sickness, with SSP forming a floor underneath. From 6 April 2026, the SSP element within those schemes must reflect the new calculation rules.

If your scheme is contractual, the change does not require employee consent (you cannot pay less than statutory entitlement) but you should review the wording for accuracy. Discretionary schemes should also be reviewed so that published terms reflect what is actually paid in practice.

Record-Keeping

Employers must maintain records of sickness absence and SSP paid. The Fair Work Agency takes over SSP enforcement from HMRC and will expect documented evidence of compliance.

At a minimum, records should include the date and length of every absence, whether SSP was paid, the calculation applied, and any fit notes received. Most modern HR or payroll systems handle this automatically; employers using manual processes need a structured record.

Common Errors to Avoid

Continuing to apply three waiting days after 6 April. This is the most common error and exposes the employer to immediate Fair Work Agency enforcement risk.
Excluding low earners from SSP. Any employee earning below £125 per week is now eligible for SSP at the lower of £123.25 or 80% of average weekly earnings.
Paying flat-rate SSP without applying the 80% calculation. Over-payment does not breach the rules but indicates a misconfigured payroll, which often produces other errors.
Failing to update contracts and handbooks. Documents that reference the three waiting days or the LEL after 6 April will create disputes and undermine consistency.
Missing record-keeping. Absence records that were adequate for HMRC may not be adequate for the Fair Work Agency's proactive enforcement model.

Enforcement Risk After 6 April

Failing to pay SSP correctly is now subject to Fair Work Agency enforcement rather than HMRC's previous (largely reactive) regime. The Agency has consolidated investigation powers and a remit to be proactive rather than complaint-driven.

An employer who fails to pay day-one SSP risks Employment Tribunal claims for unpaid SSP, Fair Work Agency civil proceedings, and reputational damage if named in enforcement publicity. For background, see The Fair Work Agency Launches April 2026.

How Policy Pros Can Help

Policy Pros writes and reviews SSP and sickness absence policies for UK employers. We can update your existing documentation to reflect the 6 April 2026 changes on a fixed-price basis, audit your SSP processes against the new Fair Work Agency enforcement standard, and produce manager guidance for absence reporting under the new rules.

If your wider HR documentation also needs review, our policy review service can identify everything that needs changing across contracts, handbooks, and payroll-linked policies on a fixed-price basis.