Are you aware of Statutory Sick Pay changes and how they work in practice?

Here’s what you need to know about the significant changes to Statutory Sick Pay (SSP) because of the Employment Rights Act 2025.

If you employ staff, these updates will affect how you calculate and manage sickness absence going forward. Here’s a simple breakdown of what’s changed and what it means for your business.

What’s changed?

There are three key updates to SSP:

1. SSP is now paid from day 1 of sickness
2. All employees qualify (no lower earnings limit)
3. SSP is now earnings-related (80% of pay, capped weekly)

Let’s go through each one.

1. Satutory Sick Pay is now paid from day 1

Previously, employees had to wait 3 “waiting days” before SSP kicked in. That’s now gone and SSP starts from the first qualifying day of sickness.

What are qualifying days?

Qualifying days are the days an employee would normally work. SSP is only paid for these days — not every calendar day someone is off sick.

Examples
A full-time employee working Monday to Friday:
Off sick all week → paid SSP for 5 days

A part-time employee working Monday, Wednesday, Friday:
Off sick all week → paid SSP for 3 days

A weekend worker:
Off sick Saturday and Sunday → paid SSP for 2 days

So working patterns matter more than ever.

Why qualifying days are important

SSP is still a weekly rate, but you now need to convert it into a daily rate.

Daily SSP = Weekly SSP ÷ Number of qualifying days

That means:

Someone working 1 day per week gets the full weekly rate for that day
Someone working 5 days spreads the weekly rate across those days

This isn’t unfair — it reflects how much of their working week they’ve actually lost.

Irregular working patterns

If your employee doesn’t have a clear pattern:

You should agree a working pattern based on recent history If not, qualifying days may default to all possible working days. This can get messy quickly, so it’s best to define a pattern wherever possible.

2. Everyone now qualifies for Statutory Sick Pay

The Lower Earnings Limit has been removed.

This means:

Low-paid workers now qualify
Zero-hours workers now qualify

This will increase the number of employees eligible for SSP in most businesses.

3. Statutory Sick Pay is now earnings-related

SSP is now calculated as:

80% of average weekly earnings (AWE)
Or £123.25 per week (current cap)
You apply whichever is lower

Examples
Employee earns £100 per week
→ SSP = £80 (80%)
Employee earns £500 per week
→ 80% = £400
→ SSP = £123.25 (cap applies)

So:

Lower earners receive a higher proportion of their pay
Higher earners are capped
How to calculate SSP now

Your payroll (or provider) should:

Identify qualifying days
Calculate average weekly earnings (last 8 weeks)
Apply the 80% or capped rate
Convert to a daily rate
Pay from day 1 (if it’s a qualifying day)

What employers need to do

To avoid errors, make sure you:

Provide accurate working patterns
Update payroll when patterns change
Share correct hours for casual or zero-hours staff

Getting this wrong could lead to underpayments or overpayments.

The bigger picture – why this matters

These changes mean SSP costs are likely to increase.

Even small absences will now trigger payment from day 1, and more employees qualify.

Practical steps to manage this
Review sickness absence trends
Hold return-to-work meetings consistently
Identify patterns of short-term absence
Consider tools like the Bradford Factor
Hold welfare meetings where needed

Final thoughts

The April 2026 SSP changes are designed to make support more accessible for employees — but they also add complexity for employers.

The key takeaway?

Working patterns and accurate data are now critical.

If you’re unsure how these changes affect your business, it’s worth getting advice before issues arise.

Need help?

If you’d like support reviewing your sickness absence processes or staying compliant, get in touch with Keeping HR Simple.