Statutory Sick Pay (SSP)

Government wants to Make Work Pay by supporting employees to take time off when they are unwell. They estimate that 1.3 million low paid workers will benefit from these changes to SSP, with each employee costing business an extra £15 per year. However, industries with lower paid or part time workers, such as leisure and hospitality, will be most impacted. Many are also concerned that there will be an increase in employees taking time off for minor ailments.

Now eligible employees are entitled to SSP from day four of sickness absence if they earn above the weekly Lower Earnings Limit (LEL) which is currently £123 per week.

• Entitlement to SSP will start from day 1 of sickness absence
• The LEL will be removed so all eligible employees will be entitled to SSP
• SSP will be paid at the lower of 80% of earnings* or the flat rate (£123.25 per week from 6 April 2026).
  • Calculated on average earnings over an 8-week reference period and rounded up to the nearest
    penny. Linked absences (within 56 days) will be treated as one continuous period.
    *Some employees will be paid less after these changes (if they earn between the LEL and £154.05) so
    those on sick leave as at 6 April will continue to receive the flat rate until either that period of sick
    leave ends, SSP ends (after 28 weeks), employment ends or a pregnancy exclusion period starts.
• Records of absence and payments must be retained for 6 years

Expected 6 April 2026