Starting in April 2026, Statutory Sick Pay (SSP) changes will remove the three waiting days so it is paid from the first day of sickness and eliminate the lower earnings limit, making all employees eligible for SSP. The standard rate will also change to the lower of 80% of average weekly earnings or the current flat rate.
Key changes from April 2026
· No more waiting days: SSP will be paid from the first day of sickness absence, instead of the current fourth day.
· Elimination of the lower earnings limit: All employees will be eligible for SSP, regardless of their weekly earnings. This is expected to benefit around 1.3 million more people, including those on lower-paid and zero-hours contracts.
· New calculation method: The rate will be the lower of the current flat rate or 80% of an employee’s average weekly earnings.
· Single enforcement body: The new Fair Work Agency will be responsible for enforcing SSP, along with other employment rights.
What this means for employers
· Update payroll and policies: Employers will need to update their systems to reflect the new rules, especially the change in eligibility and the removal of waiting days.
· Review absence management: It may be wise to review and update absence management policies to address potential increases in sick leave and ensure they are robust.
· Train managers: Managers should be trained on the new rules and how to manage absence effectively, including conducting return-to-work meetings.