Statutory Sick Pay reform coming in April 2026

From 6th April 2026, the following changes will come into effect:

• The current three waiting days will be abolished, making Statutory Sick Pay (SSP) payable from day one of sickness absence
• The requirement to have average weekly earnings (AWE) of at least the National Insurance Lower Earnings Limit (LEL) to be entitled to SSP will be removed
• SSP will be paid at the lower of either the statutory flat rate (£123.25 from 6th April 2026) or 80% of AWE

Transitional arrangements

One of the things the new regulations did not make clear was how employees already on sick leave should be treated when the new rules come into force. The new 80% rate of pay could result in a reduction in sick pay in the case of some lower paid employees, so some transitional arrangements are being introduced to help employers understand how to deal with these situations:

• Employees already in receipt of SSP will continue to receive the statutory flat rate from 6th April 2026
• Anyone absent before 6th April 2026 and serving waiting days or were not receiving SSP due to having AWE below the LEL will immediately become entitled to SSP from 6th April

These arrangements will apply until the employee returns to work or exhaust their 28-week entitlement to SSP.

Balancing employee wellbeing with business pressures

The upcoming SSP reforms are a meaningful step toward tackling the issue of presenteeism, especially for lower paid employees who often felt pressured to work while unwell simply because they can’t afford to take away from work without pay. Paying SSP from day one and removing the lower earnings limit should help people take the time they genuinely need to recover, which ultimately supports healthier, more sustainable workplaces.

At the same time, these changes could bring added cost and administrative complexity for employers, particularly smaller organisations already juggling tight budgets and limited HR capacity. The transitional rules help smooth the shift, but businesses will still need to invest time in updating policies, systems, and contractual wording to stay compliant. It’s a positive move for employee wellbeing, but one that requires careful planning to avoid creating new pressures elsewhere.

What to do next

To help ensure your organisation remains compliant, MHR are working hard to make sure our iTrent and People First products are ready for the changes in April.

Organisation should review their internal sickness policies and employment contracts and identifying reference to waiting days or the lower earnings limit, as these will need updating. It is also worth considering how any occupational sickness schemes could interact with the new statutory rules and if any changes may be needed there.

Please note that at the time of publication, much of the guidance is still in draft state and is potentially subject to change.