New Statutory Sick Pay Rules Explained for Employers

• Eligible employees must be paid at least £118.75 per week when off sick.
• Employees now need to earn at least £125 per week (up from £123) to qualify for Statutory Sick Pay.
• More low-paid and part-time workers now qualify due to these changes.
• From 2026, all employees will be entitled to Statutory Sick Pay from day one, regardless of income level.

Statutory Sick Pay (SSP) is the minimum amount employers must pay eligible staff who are too ill to work.

You must pay SSP for up to 28 weeks if the employee is off sick and meets the earnings and absence criteria.

To qualify for SSP, an employee must have a contract with you and be paid at or above the Lower Earnings Limit (LEL) per week on average.

Payment currently begins on the fourth qualifying day of absence. The first three days are classed as unpaid waiting days, unless the employee has already received SSP within the previous eight weeks.

From 6 April 2025, the following SSP changes became law:

The weekly flat rate of SSP rose to £118.75 for all eligible employees on sick leave, up from £116.75.

This is the minimum amount an eligible employee must receive. Employers are free to offer more generous terms, both in terms of rate and duration, through a contractual sick pay scheme.

To qualify for SSP, employees must now earn at least £125 per week, up from £123. This applies to average gross earnings across the eight-week period before sickness begins.

As an employer, you must:

If you choose to pay the statutory amount, ensure that the £118.75 per week is paid to all eligible employees off sick from 6 April 2025 onward.

Check that payroll calculates eligibility using the new minimum of £125 in average weekly earnings over the reference period.

Review absence policies, employee handbooks, and any HR documentation that refers to SSP. Communicate the changes to payroll staff and managers to ensure consistency.

From 6 April 2026, additional reforms under the Employment Rights Bill are expected to take effect:

• SSP will be payable from the first day of absence, removing the three-day waiting period.
• The Lower Earnings Limit will be scrapped, allowing all employees to qualify regardless of income.
• Employees earning below the LEL will be paid as 80% of their average weekly earnings or the SSP base rate, whichever is lower.

The UK Government hopes the Employment Rights Bill will eventually widen access to SSP, particularly for low-paid and irregular workers.

An estimated 1.3 million workers are not currently eligible for statutory sick pay because they earn less than the LEL.

From April 2026, these workers will receive either 80% of their average weekly earnings or the base SSP rate, whichever is lower. For many low-paid workers too sick to earn, this means being up to £100 better off per week compared to the previous rules.

These reforms also have a wider aim: to tackle the UK’s longstanding productivity slowdown.

It’s hoped that with this additional financial support, all employees will be able to take the time needed off work to fully recover from significant illnesses. This has several positive potential outcomes:

• Reduced presenteeism – employees should feel less financial pressure to work while sick, reducing the risk of mistakes and accidents.
• Faster, more complete recovery – employees should be more productive after taking time off to fully recover.
• Lower risk of infection spread – especially in roles where staff work closely together.
• Improved morale and loyalty – staff will feel supported during sickness, which can help retention.

With the April 2025 changes in force and further reforms due in April 2026, you must act now to ensure compliance and prepare for upcoming obligations.

Here’s what you should do:

Ensure your payroll software reflects the new SSP weekly rate of £118.75.

Check that the system uses the new minimum earnings threshold of £125 per week, calculated over the 8-week reference period before the employee’s sickness begins.

Update sickness absence policies, employee handbooks, and any documentation that refers to SSP rates or eligibility rules.

Ensure employment contracts do not contain outdated references to SSP entitlements.

Make sure line managers, HR teams, and payroll officers understand the new SSP rate, threshold and qualification criteria.

Issue an internal update explaining the 2025 changes and what’s expected from April 2026.

These will expand eligibility and introduce variable SSP payments. Begin budgeting and coordinating with payroll providers to handle these changes smoothly.

Sickness absence is often seen as a cost — but when managed well, it can protect productivity, improve morale, and reduce long‑term disruption. The recent changes to statutory sick pay make it even more important for employers to understand both their legal responsibilities and how to use absence as a tool for recovery and better performance.

Our Sickness Absence Management training course helps employers and managers:

• Plan and manage absences to minimise disruption
• Support employees’ return to work in a safe and sustainable way
• Tackle underlying causes of sickness absence to improve long‑term productivity

This CPD‑certified course is fully online and self‑paced, making it easy to fit around busy schedules. It equips you with the knowledge to meet compliance duties and achieve positive outcomes for both your employees and your business.