New SSP rules from April 2026: who qualifies, what they’re owed, and how to calculate it

From day one entitlement to universal coverage, the Employment Rights Act is overhauling Statutory Sick Pay. If you employ anyone — including part-time and zero-hours workers — this change affects you.

What’s changing with SSP from 6 April 2026?

The Employment Rights Act brings the most significant changes to Statutory Sick Pay in a generation. Here’s what’s different from 6 April 2026:

No more waiting days

Currently, employees must be off sick for four consecutive days before SSP kicks in — the first three are unpaid “waiting days”. From 6 April, that changes. SSP is payable from the very first day of absence, regardless of how long the employee is off. For businesses with frequent short-term absences, this is a meaningful increase in cost.

Universal entitlement

In the past, only employees earning above the Lower Earnings Limit (£125 per week in 2025/26) could claim SSP. That threshold is gone. Every employee — no matter how few hours they work or how little they earn — will be entitled to SSP. This particularly affects businesses that rely on part-time, casual, or zero-hours workers.

The new SSP rate

The standard weekly SSP rate from 6 April 2026 is £123.25. Employees earning more than this will receive the flat rate. Employees earning less will receive the lower of 80% of their average weekly earnings or £123.25 — whichever is smaller.

Who is affected by the new SSP rules?

In short: almost every employer in the UK. But some businesses will feel the impact more than others.

If your workforce includes any of the following, you should review your processes now:

• Part-time employees earning below the current Lower Earnings Limit
• Zero-hours contract workers
• Employees on variable hours or shifts
• Casual or seasonal staff
• Employees currently on phased returns from long-term sick leave

For workers in the last category, the changes also simplify a complex calculation headache. Currently, employees on phased returns often receive nothing for their non-working days because those days don’t form a continuous “Period of Incapacity for Work”. Under the new rules, SSP is payable for the days not worked — which is both fairer and simpler to administer.

How do I calculate SSP under the new rules?

The calculation depends on whether your employee earns above or below the flat SSP rate. Here are four worked examples drawn from real scenarios:

For more on how sick pay entitlement for part-time workers works, our employment law team has covered the detail.

What is the Fair Work Agency — and why does it matter?

On 7 April 2026 — one day after the SSP changes take effect — the government launches the Fair Work Agency. This is a new enforcement body with broader powers than anything that’s existed in UK employment law before. Crucially, it takes on responsibility for SSP enforcement for the first time.

Previously, there was no single agency actively policing whether employers paid SSP correctly. That changes from April. The Fair Work Agency can:

• Issue Notices of Underpayment (for National Minimum Wage, SSP, and holiday pay) — payable within 28 days
• Impose a mandatory penalty of 200% of the underpaid sum (capped at £20,000 per worker)
• Recover its own enforcement costs from non-compliant employers

To put that in context: if you underpay three employees their SSP entitlement by £500 each, you could face the underpayment plus a £3,000 penalty on top. These figures can escalate quickly — and that’s before any employment tribunal claim.

This isn’t a reason to panic. It is a reason to get your absence management processes and payroll calculations right before April arrives.

Why sickness absence management matters more than ever

The SSP changes are happening against a backdrop of already-rising sickness absence. Sir Charles Mayfield’s Keep Britain Working report, published in November 2025, set out the scale of the problem:

Sickness absence rates are now at a 15-year high — 50% higher than in 2019. With direct costs rising further from April, SMEs that don’t have a robust sickness absence management process in place face a compounding problem.

How should you manage sickness absence ahead of the changes?

Good absence management isn’t just about compliance — it protects your people, your culture, and your business. The changes to SSP make it more important than ever to have the basics right.

Managing short-term sickness absence

Short-term absence — the odd day here and there — is where most businesses have the most exposure post-April, because SSP now applies from day one. Here are the five pillars of a robust process:

1. A clear reporting procedure

Every employee should know exactly who to call, when, and how when they’re too unwell to work. The default should be a phone call before the shift starts — not a text or a WhatsApp message. Your sickness absence policy should spell this out clearly, including what information you need (reason for absence, estimated return, whether a fit note will be needed). Make it clear that failing to follow the procedure could result in disciplinary action — but be mindful of your duty to make reasonable adjustments where relevant.

2. Accurate records

Keep a clear log of every sickness absence — including the dates, duration, and stated reason. Don’t mix it up with other types of absence, such as emergency time off for dependants. Self-certificates (for absences up to seven days) and fit notes (beyond that) are your evidence trail. They also help you spot if a pattern of absence might be related to a disability — something you have a legal duty to investigate, regardless of whether the employee has told you directly.

3. Return-to-work interviews

A short conversation on the employee’s first day back is one of the most effective tools you have. It confirms why they were absent, checks they’re fit to return, asks whether any adjustments are needed, and reinforces your policies. Keep a written record, signed by both employee and manager.

Repeated short-term absences flagged during return-to-work interviews might highlight the need for formal absence management action. But that action should begin with a review meeting — not a warning letter.

4. The right culture

The Keep Britain Working report found that UK workplaces are often paralysed by a mutual culture of fear around health conversations — employers worry about triggering grievances, employees worry about stigma. The result is that problems go unaddressed until they become crises. Regular one-to-ones between managers and their team members are the simplest antidote. They build the trust that makes difficult conversations easier when they’re needed.

Training managers to have these conversations is not a nice-to-have. They don’t need to diagnose or fix health issues — their role is to start the conversation, listen, document, and escalate when needed.

5. A consistent escalation process

Many businesses use trigger systems, like policies that say a certain level of absence will prompt a review meeting. The Bradford Factor is a well-known example; others use a simple threshold of x days or x separate occasions within a rolling period. Whatever system you use, the key points are:

• Triggers should prompt a review meeting — not an automatic warning
• Every case should be assessed on its merits (consistency doesn’t mean treating everyone identically)
• Absence related to pregnancy or disability must be handled with particular care — reasonable adjustments to thresholds are often required
• Document everything, invite people to meetings in writing, and follow up in writing

Managing long-term sickness absence

Long-term absence is generally defined as anything over four weeks. It requires a different approach — one focused on support, medical evidence, and careful consideration of what a fair outcome looks like.

Stay in contact

Don’t go silent. Agree with the employee how often you’ll be in touch and in what format. Contact should feel supportive, not pressurising — a check-in to ask how they’re feeling and whether there’s anything you can do is very different from asking when they’re coming back.

Get medical evidence

If an absence is prolonged, you’ll need up-to-date medical evidence — either through Occupational Health or by requesting a medical report. This is essential before making any decisions about adjustments, phased returns, or capability procedures. If an employee refuses to consent to a medical report, take legal advice before acting.

Read more about managing long-term sickness absence in our employer guide.

Consider all reasonable adjustments

If the employee’s condition is, or could be, a disability under the Equality Act 2010, you have a duty to make reasonable adjustments. This might mean adjusted duties, different hours, a phased return — or a combination. Don’t take an all-or-nothing approach. Part-time work, even temporarily, may be a reasonable step that avoids dismissal entirely.

Dismissal as a last resort

When considering dismissal on health grounds, the key question isn’t how long someone has been off — it’s how long it’s likely to be before they can return, and what the impact on the business is in the meantime. You’ll need current medical evidence, documented consideration of alternatives, and a fair process. Getting this wrong is expensive.

Common absence management mistakes to avoid

• Ignoring absence because someone performs well when they are in. Consistency matters — applying the process selectively creates legal risk and undermines team morale.
• Jumping straight to disciplinary action without exploring underlying causes first.
• Avoiding difficult conversations about health. Awkwardness is normal. Silence is worse.
• Not spotting potential disability issues. If in doubt, ask. Employers can be held liable for failing to make adjustments even when they “ought to have known” about a condition.
• Waiting for the employee to ask for reasonable adjustments. You should be proactively considering whether there’s anything you can do.
• Underestimating the manager’s role. Your process is only as good as the people implementing it. Training is not optional.