A major reform to Statutory Sick Pay (SSP) took effect from 6 April 2026. The three-day waiting period was removed (SSP is now payable from day one of sickness). The Lower Earnings Limit eligibility threshold was removed (1.3 million more workers became eligible). The calculation changed to 80% of the employee’s average weekly earnings or £123.25 per week, whichever is lower. SSP is paid by the employer for up to 28 weeks per period of incapacity for work.
This guide covers the April 2026 changes in detail, eligibility, the new calculation, the maximum duration, record-keeping, and the most common employer pitfalls.
What changed on 6 April 2026
Three reforms to SSP took effect from 6 April 2026:
Removed three waiting days
Previously, SSP was payable only from the fourth day of sickness — the first three days were “waiting days” with no SSP entitlement. From 6 April 2026, SSP is payable from the first day of sickness.
The reform was designed to make sick pay accessible from the start of illness, particularly for short illnesses where the previous waiting-day rule meant most workers received nothing.
Removed Lower Earnings Limit threshold
Previously, SSP was payable only to employees earning at least the Lower Earnings Limit (£125 in 2026/27). From 6 April 2026, that threshold has been removed. SSP is now available to all employees regardless of earnings level.
The Department for Work and Pensions estimated that 1.3 million additional workers became eligible for SSP as a result.
New 80% AWE calculation
The flat-rate cap remains at £123.25 per week (the rate from April 2026), but the daily rate for low earners has changed. SSP is now paid at:
- 80% of the employee’s average weekly earnings, or
- £123.25 per week
whichever is lower.
For higher earners (where 80% AWE exceeds £123.25), the cap of £123.25 applies. For lower earners (where 80% AWE is below £123.25), the lower 80% AWE rate applies.
Eligibility
SSP applies to employees and most workers who:
- Are off work for 4 or more consecutive days (a “Period of Incapacity for Work” or PIW)
- Have notified the employer of their absence
- Provide a fit note (sick note) from a healthcare professional from day 8 of absence
Note that SSP is now payable from day one of the PIW, but the PIW itself must still be 4 or more consecutive days for SSP to apply. A 1- to 3-day absence does not qualify because no PIW exists.
The earnings threshold (LEL) has been removed, so SSP is available to all eligible workers regardless of pay level.
How to calculate SSP 2026
The new calculation:
- Calculate the employee’s average weekly earnings (AWE) using the same 8-week reference period as for SMP
- Calculate 80% of AWE
- Compare 80% of AWE with £123.25 (the April 2026 statutory cap)
- Pay SSP at the lower of the two figures
- Convert weekly rate to daily rate by dividing by the qualifying days in the working week
Worked example: higher earner
An employee earns £600 per week. AWE = £600. 80% × £600 = £480. The £123.25 cap applies (because £123.25 < £480). Weekly SSP = £123.25.
Worked example: lower earner
An employee earns £100 per week. AWE = £100. 80% × £100 = £80. £80 < £123.25, so the 80% AWE rate applies. Weekly SSP = £80.
For a worker on a 5-day week, daily SSP at the £123.25 rate is £123.25 ÷ 5 = £24.65.
For wider context on employer NI and statutory pay, see all employer NI obligations.
Maximum SSP duration
SSP is payable for up to 28 weeks per Period of Incapacity for Work.
If absences within 8 weeks of each other are linked, they form a single PIW even if the employee returns to work between them. The 28-week clock counts cumulative days within linked PIWs.
After 28 weeks of SSP, payment stops. If the employee remains unfit for work, they may be eligible for benefits administered by DWP — typically Statutory Sick Pay ends and the employee can apply for Universal Credit or Employment and Support Allowance, depending on circumstances.
Record-keeping
Employers must keep SSP records for at least three years. The Statutory Sick Pay (General) Regulations 1982 (as amended) require records of:
- Employee details
- Dates of sickness absence
- SSP paid and dates
- Reasons for any non-payment
Most modern payroll software handles SSP records automatically as part of RTI submissions.
SSP and other statutory leave
SSP cannot be paid simultaneously with most other statutory pay. Specific interactions:
- SSP vs SMP: A pregnant employee receiving SMP cannot also receive SSP. SMP takes priority during the maternity pay period.
- SSP vs Statutory Adoption Pay (SAP): Same rule — SAP takes priority.
- SSP vs Shared Parental Pay (ShPP): ShPP takes priority where both might apply.
- Long-term sickness: After 28 weeks of SSP, employees often transfer to company sick pay (where the employer offers it), Permanent Health Insurance (PHI), or DWP benefits.
If an employee is on phased return after long-term sickness, SSP may be applicable for residual non-working days within a phased schedule. Take care to apply the qualifying-day rules correctly.
Reclaiming SSP — what’s possible
Standard SSP reclaim was abolished in 2014. From April 2014, employers paid SSP entirely from their own resources without HMRC reclaim, except in limited COVID-era schemes that have since ended.
The April 2026 reform did not reintroduce a general SSP reclaim mechanism. Verify whether any sector-specific or temporary scheme applies at the time of payment.
Common employer pitfalls
Five frequent SSP errors:
Day-one rule failures
Continuing to apply the old three-waiting-day rule after 6 April 2026. From the reform date, SSP is payable from the first day of qualifying absence (within a PIW of 4 or more days). Update payroll software to reflect the new rule.
LEL eligibility mistakes
Continuing to deny SSP to employees earning below the Lower Earnings Limit. From 6 April 2026, the LEL threshold has been removed. All eligible employees qualify regardless of earnings level.
Wrong calculation for low earners
Applying the £123.25 cap to a low earner whose 80% AWE is below £123.25. The new rule is 80% AWE or £123.25, whichever is lower.
Fit note acceptance issues
The fit note (Med 3) is required from day 8. Employers cannot demand a doctor’s note for the first 7 days — self-certification is sufficient. Some employers require a fit note earlier, which is not permitted under the regulations.
Linked PIW oversight
Forgetting that absences within 8 weeks of each other can link into a single PIW for SSP duration purposes. The 28-week SSP cap applies cumulatively across linked PIWs.
Key takeaways
- SSP rate is £123.25 per week from April 2026 or 80% of AWE, whichever is lower
- Day-one entitlement applies from 6 April 2026 (no more 3 waiting days)
- LEL eligibility threshold removed — all eligible employees qualify regardless of earnings
- SSP paid for up to 28 weeks per Period of Incapacity for Work
- Record-keeping required for at least 3 years
- No general SSP reclaim mechanism currently exists
Frequently asked questions
What is the SSP rate for 2026? £123.25 per week from April 2026, or 80% of the employee’s average weekly earnings, whichever is lower. The cap applies to higher earners; the 80% AWE rate applies to lower earners.
When does SSP start? From the first day of sickness, from 6 April 2026 onwards. The previous three-day waiting period was removed. The PIW (Period of Incapacity for Work) must still be 4 or more consecutive days for SSP to apply.
Do all employees qualify for SSP? From 6 April 2026, yes — the Lower Earnings Limit eligibility threshold was removed. All eligible employees and most workers qualify regardless of earnings, provided they have a Period of Incapacity for Work of 4 or more days and have notified the employer.
How long can an employee receive SSP? Up to 28 weeks per Period of Incapacity for Work. After 28 weeks, SSP stops. Employees may then transfer to company sick pay (if offered), PHI, or DWP benefits depending on circumstances.
Can employers reclaim SSP from HMRC in 2026? No general reclaim mechanism currently exists. Standard reclaim was abolished in 2014. The April 2026 reform did not reintroduce a general reclaim. Verify whether any sector-specific or temporary scheme applies.
(Verify any introduction of SSP reclaim mechanisms following the April 2026 reforms.)
Useful resources
Acas — Statutory sick pay changes 2026 https://www.acas.org.uk/statutory-sick-pay-changes-2026
GOV.UK — Statutory Sick Pay https://www.gov.uk/statutory-sick-pay
GOV.UK — Calculate SSP for an employee https://www.gov.uk/calculate-statutory-sick-pay