SSP now starts from day one
The old three “waiting days,” where employees were paid nothing for the first three days of sickness absence, have been scrapped. As long as it’s a qualifying day, SSP is now payable from the very first day someone is off sick.
The earnings threshold has gone
Previously, anyone earning below the Lower Earnings Limit wasn’t entitled to SSP at all, which excluded a significant number of part-time and lower-paid staff. That threshold no longer applies. If someone meets the other conditions for SSP, their earnings level alone can’t rule them out.
The amount is now linked to earnings
Rather than a single flat rate for everyone, SSP is now whichever is lower: the new statutory weekly rate (£123.25 from 6 April 2026) or 80% of the employee’s average weekly earnings. In practice, this means lower earners may get a different amount to higher earners, so payroll calculations need to reflect that.
Everything else about SSP, such as the qualifying conditions, notification requirements, and the role of Statement of Fitness for Work, stays as it was. This is an expansion of who qualifies and when payment starts, not a change to the basic framework.
What This Means in Practice
For most businesses, this isn’t a small adjustment behind the scenes. It touches payroll, policy, contracts and how managers handle day to day absence.
You will need to work through:
Payroll and systems
Make sure SSP is calculating from day one, and that the 80% average weekly earnings calculation is built in for relevant employees, not just the flat rate.
Sickness absence policy
Strip out references to waiting days and earnings thresholds, and make sure the policy reflects how SSP works now.
Contracts and handbooks
Particularly for casual, zero hours or lower earning staff, who may be entitled to SSP for the first time.
Record keeping
Accurate, day one records of sickness absence, including how linked periods of absence are tracked, since SSP can run for up to 28 weeks across linked spells.
Manager training
Line managers are usually the first to hear about a sick day; so they need to know how to record it correctly from day one, not just once an absence becomes longer term.
Phased Returns To Work
One change that’s easy to miss: if someone returns to work on a phased basis after sickness, working reduced hours while they recover, the days they’re not working may now attract SSP too. Previously this was less of an issue because of the waiting days. Now it’s worth managers being fully aware of this upfront, agreeing the working pattern clearly with the employee, and getting fit note evidence in place, so it doesn’t turn into a pay dispute partway through someone’s return.
Why It’s Worth Getting Right
Beyond the cost of the payments themselves, there’s a compliance angle that’s harder to ignore than it used to be. The Fair Work Agency, which launched in April 2026, brings SSP enforcement together with National Minimum Wage and holiday pay under one body with real investigative powers. It can inspect workplaces, request evidence of compliance and take action where things aren’t being done correctly.
Get it wrong, and the risks include financial penalties, claims for unpaid statutory entitlements, and a higher chance of becoming the subject of enforcement action, on top of the reputational impact that comes with any of those.
In practice, most issues come from one of three places: policies that still reference waiting days or earnings thresholds, payroll set up to calculate the flat rate but not the 80% earnings-based alternative, or phased returns that aren’t properly documented.
The Cost Side
It’s worth being upfront with whoever holds the budget: this change increases SSP cost exposure, particularly for businesses with larger or lower paid workforces, or anyone managing frequent short term absence. Day one entitlement also removes some of the friction that previously discouraged very short absences, so attendance management and return to work conversations may need to do more work than before.
Budget for the direct cost of SSP, but also for the time it takes to update payroll, policies and contracts properly.
Where To Start
If your policies haven’t been reviewed against current legislation for a while, our HR Diagnostic Tool is a good place to check that more broadly.
For the SSP-specific work, our team can review your sickness absence policy, payroll setup and record keeping against the new rules, whether through an HR Essentials Bundle or ongoing Retained HR support. Book a free consultation to find out more.
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