Statutory Sick Pay changes in April 2026: a practical guide for employers

An employee calls in sick, misses two shifts and returns to work later that week. The manager arranges cover and makes a note to complete the return-to-work conversation.

From April, that short absence could also create a Statutory Sick Pay obligation.

On 6 April 2026, changes to Statutory Sick Pay (SSP) will remove the three waiting days, remove the minimum earnings requirement and introduce a new calculation based on earnings. The changes apply across the United Kingdom.

For employers, preparation needs to cover more than a payroll software update. It also means making sure managers record absences promptly, employees understand what to expect and the right information reaches payroll.

There are three main changes to understand.

SSP will become payable from the first qualifying day of sickness absence. Under the current rules, employees generally need to be sick for at least four consecutive days, and the first three qualifying days are normally unpaid waiting days. From 6 April, eligible employees will no longer have to serve those waiting days. A short absence can therefore attract SSP even where the employee returns after just one or two days.

The minimum earnings requirement will be removed. Employees currently need average earnings of at least £125 per week to qualify. From 6 April, earning below that amount will no longer exclude someone from SSP. This is particularly relevant when reviewing eligibility for employees who work fewer hours or have variable earnings. Other eligibility conditions will still apply.

The weekly payment will use a new calculation. For 2026–27, SSP will be the lower of £123.25 per week or 80% of the employee’s average weekly earnings. This replaces the current flat weekly rate of £118.75.

The important point is that £123.25 is not a payment every employee will automatically receive, and 80% is not an uncapped replacement for their usual wages.

For a new sickness absence starting after the changes, an eligible employee with average weekly earnings of £100 would have a weekly SSP rate of £80. Someone averaging £300 would have a weekly SSP rate of £123.25, because that is lower than 80% of their earnings. These examples assume entitlement for a full qualifying week.

The calculation can also produce a lower weekly rate for some employees who already qualify under the current system. For example, average weekly earnings of £140 would produce a new weekly SSP rate of £112, compared with the current £118.75 flat rate. However, payment will start earlier, and transitional protection applies to certain ongoing absences. Employers should therefore avoid describing the reform as the same pay increase for everyone.

Average weekly earnings must be calculated using the relevant earnings period under HMRC’s rules - not simply the employee’s latest shift, contracted minimum hours or usual take-home pay. The calculation normally uses a period covering at least eight weeks, with separate rules for employees who have not worked long enough to build up that history.

For businesses with variable-hours employees, this makes accurate payroll information particularly important.

“Day one” refers to the removal of the waiting period. It does not mean SSP becomes payable for every calendar day someone feels unwell.

SSP is paid for qualifying days - normally the days the employee would have worked. Where someone does not have a regular working pattern, the employer should agree which days count as qualifying days.

It also needs to be a full day of sickness absence. A day on which someone has already worked before going home sick does not count as a full sick day for SSP purposes. Contractual sick pay arrangements may provide something different, but managers should not confuse those arrangements with statutory entitlement.

Consider this hypothetical example: an eligible employee has five qualifying days each week, qualifies for the £123.25 weekly rate and misses two complete qualifying days because of sickness after 6 April. Their daily rate would be £24.65, making SSP for those two days £49.30, before any applicable deductions.

Do not automatically divide every employee’s weekly SSP rate by five. The number of qualifying days matters.

SSP will remain a statutory minimum, payable for up to 28 weeks where the employee meets the eligibility requirements. Employers can provide more through a contractual sick pay scheme, but they cannot provide less than the statutory entitlement.

Removing the earnings threshold does not mean every absence automatically qualifies. Employees must still satisfy the remaining conditions, including having done some work under their contract and providing the required notification and evidence. Other exclusions can also apply.

SSP will also continue to be paid through payroll in the normal way. “Payable from day one” does not mean an employer needs to make a separate payment on the day someone calls in sick. It means the entitlement starts earlier; payment follows the normal payday arrangements.

The changes do not introduce a requirement for employees to obtain medical evidence for every short absence.

For sickness lasting seven calendar days or less, employees can self-certify without a fit note from a healthcare professional. Where the absence lasts more than seven consecutive days, a fit note is normally required. That period includes non-working days, not just missed shifts.

Make sure managers understand the difference between recording an absence, obtaining self-certification and requesting a fit note. These are related steps, but they are not interchangeable.

There is also an important distinction between late notification and a late fit note. HMRC states that employers cannot withhold SSP simply because an employee is late sending a fit note. Late notification of sickness can affect payment in some circumstances, but a good reason for the delay must be considered. Avoid a blanket “no paperwork, no SSP” approach without checking the applicable rules.

Give employees clear instructions about whom to contact, when to report their absence and how to provide any necessary documentation.

An absence that starts before 6 April and continues afterwards needs a separate check.

HMRC’s transitional guidance confirms that waiting days will no longer apply from 6 April, but waiting days falling before that date will not become retrospectively payable. Some employees previously excluded because of low earnings may also become eligible, subject to the transitional conditions.

Certain employees already receiving SSP will be protected from a reduction caused by the new percentage calculation. They will receive the new £123.25 flat rate for the remainder of that continuous absence, until they return to work or their entitlement ends. That protection does not simply carry into a later absence after they have returned.

Before processing April payroll, ask your payroll provider to identify ongoing and linked absences and check the transitional rules. Do not assume every existing absence can be handled in exactly the same way as a new one.

A payroll system can only calculate correctly from the information it receives.

Imagine a manager records an absence only when the employee returns. If the employee remains off sick across a payroll cut-off, the payroll team may not yet have the information needed to assess payment.

A better workflow is to record the absence when it is reported, update it while it continues and confirm the end date when the employee returns. The return-to-work conversation should complete the picture, not be the first point at which the absence appears in the organisation’s records.

For a multi-site business, agree who is responsible for each step. Who records the initial report? Who updates an ongoing absence? Who follows up on documentation? Who checks that payroll has received the relevant dates?

As a practical starting point, make sure the record distinguishes when the employee became unwell, which working days were affected, when they notified the business and when they returned. Record relevant updates rather than relying on someone remembering the details at the end of the month.

Keep access proportionate. Payroll may need absence dates without needing a detailed account of the employee’s medical condition. The ICO recommends limiting access to sickness information to those who need it for their role and separating detailed health information from simpler absence records where possible.

HMRC recommends reviewing sickness absence policies, checking payroll readiness and communicating the changes to employees.

Start with your policy wording. Look for references to three unpaid waiting days, the £125 earnings threshold and the old weekly rate. Check that staff guidance clearly distinguishes statutory entitlement from any enhanced company sick pay.

Next, test the practical arrangements with payroll. Include a short absence, a lower-paid employee, someone with variable working days and an absence that crosses the implementation date. Ask how missing information or later corrections should be submitted.

Brief managers on what they need to do - not just what the legislation says. They should know how to record an absence, where to send questions and when to involve the people or payroll team. Avoid expecting individual shift managers to make complicated eligibility decisions themselves.

Finally, review the budget using your own workforce data. SSP cannot be reclaimed from HMRC.

Consider recent short absences, employees previously excluded by the earnings threshold and any contractual sick pay already covering those periods. That will give you a more useful estimate than applying one standard cost to every absence.

Preparing for the cost of SSP should not turn a return-to-work conversation into an automatic warning.

Acas advises that attendance review points should trigger a review, rather than automatic disciplinary action. That review should consider the reasons for absence, the employee’s wellbeing and any support or adjustments that may be appropriate.

Keep the questions separate: what SSP is legally due, what support the employee needs and whether any attendance concern requires further consideration under your policy.

Clear records can support all three. They should not replace an individual assessment.

These changes highlight the connection between absence administration and accurate pay.

Atlas helps employers record absences, complete return-to-work forms and maintain an employee’s absence history in one place. Rather than reconstructing events from paper forms, emails and local spreadsheets, managers can work from a more consistent record.

For a restaurant or other shift-based business, that means giving the next manager a clearer picture of what has already happened. For a people team overseeing several locations, it means better visibility of how absence is being recorded and followed up.

Atlas supports that administrative process; statutory eligibility decisions and payment calculations still need to be checked through your payroll arrangements.

The aim is not simply to collect more information. It is to make sure the right information is recorded, available to the right people and acted on at the right time.

Before 6 April, walk through one absence from the initial phone call to the employee’s payslip. That is where you will see whether your process is ready.

This article provides general information about the SSP changes taking effect on 6 April 2026. It is not legal or payroll advice. Refer to HMRC guidance and seek appropriate advice when assessing individual entitlement, calculations or transitional cases.