SSP (Statutory Sick Pay) 2026: what changed?

SSP (Statutory Sick Pay) is the minimum statutory sick pay an eligible UK employee can receive when they are off work because of illness. In 2026, the rules changed in a way that affects payroll, HR policies, manager guidance, and employee expectations.

From 6 April 2026, SSP can be paid from the first full day of sickness absence, and the old Lower Earnings Limit no longer blocks eligible lower-paid employees from receiving support. The weekly rate is now £123.25 or 80% of average weekly earnings, whichever is lower.

If an employee calls in sick for one day, do you know what your payroll system should do? This guide explains the SSP 2026 changes, how calculations work, and what you should update now.

TL;DR

• From 6 April 2026, SSP can apply from the first full day of sickness absence, so employers should no longer rely on the old three-day waiting period for absences covered by the new rules.
• The Lower Earnings Limit has been removed, which means eligible lower-paid employees are no longer excluded from SSP simply because their earnings fall below the previous threshold.
• The 2026 SSP rate is £123.25 per week or 80% of average weekly earnings, whichever is lower. This makes accurate payroll data especially important for part-time, low-paid, and variable-hours employees.
• Employers should review sickness policies, payroll settings, absence workflows, manager guidance, and employee communications to make sure every sickness case is recorded correctly from day one.

What is SSP and why did the 2026 change matter?

SSP is a legal sick pay entitlement for eligible employees in the UK. It gives financial support when someone cannot work because they are ill. For employers, it also creates a clear payroll obligation, so sickness absence needs to be recorded accurately from the start.

The 2026 reform matters because it changes the point at which payment starts and expands access for lower-paid workers. SSP is now more immediate and more dependent on accurate earnings data. That makes the change especially relevant for employers with part-time workers, variable-hours staff, shift workers, seasonal teams, or employees with fluctuating pay.

SSP before and after 6 April 2026

Before 6 April 2026, SSP usually started after three waiting days. This meant an employee often had to be off sick for several qualifying days before receiving statutory sick pay. Employees also had to meet the Lower Earnings Limit, which excluded some lower-paid workers from entitlement.

From 6 April 2026, the three-day waiting period has been removed. SSP can now be paid from the first full day of sickness absence. The Lower Earnings Limit has also been removed, so eligible employees can qualify regardless of their earnings level.

The rate has also changed in a meaningful way. Instead of applying only a flat weekly rate, employers now use the lower of two figures: £123.25 per week or 80% of the employee’s average weekly earnings. This means higher earners are usually capped at the statutory weekly rate, while lower-paid employees may receive an earnings-based amount.

How is SSP calculated in 2026?

To calculate SSP in 2026, you need the employee’s average weekly earnings and the relevant sickness dates. In many cases, average weekly earnings are based on earnings in the 8 weeks before the sickness absence. Once you have that figure, calculate 80% and compare it with the statutory weekly rate of £123.25.

The employee receives the lower amount. This is the part that payroll teams need to check carefully, because the answer will not be the same for every worker.

Example 1: lower-paid employee

An employee earns £100 per week on average. 80% of £100 is £80. Because £80 is lower than £123.25, the employee’s SSP rate is £80 per week, adjusted according to their qualifying days.

Example 2: employee above the weekly cap

An employee earns £500 per week on average. 80% of £500 is £400. Because £400 is higher than £123.25, the employee’s SSP rate is £123.25 per week, applied to the relevant qualifying days.

Example 3: variable-hours employee

A variable-hours employee earns different amounts each week. In this case, the quality of your payroll data matters. You need to review the correct earnings period, confirm the employee’s qualifying days, and make sure overtime, shift pay, or irregular hours are treated consistently.

Who qualifies for SSP after the 2026 reform?

The removal of the Lower Earnings Limit does not mean every person working with a business automatically receives SSP. The person still needs to meet the remaining eligibility conditions. They must usually be classed as an employee for SSP purposes, have started work, be off sick for a qualifying period, and notify the employer within the required deadline.

This is an important distinction for HR teams. A payroll system may show that someone earns below the old earnings threshold, but that no longer decides entitlement in the same way. Instead, you need to focus on employment status, sickness dates, notification rules, and accurate earnings data.

What does “first full day of sickness absence” mean?

From 6 April 2026, SSP can be paid from the first full day an employee is off sick. If someone is scheduled to work Monday to Friday and is sick from Monday morning, Monday may be the first qualifying day.

For regular employees, this may be simple. For variable-hours workers, part-time staff, or shift-based teams, the answer can be more complex. You need to know which days the employee would normally have worked. Those working-pattern details are what turn a sickness report into a payroll-ready record.

What employers should update after the SSP 2026 changes

The SSP 2026 reform is not only a payroll change. It affects how sickness absence is reported, approved, recorded, calculated, and explained. If your employee handbook still mentions waiting days or the Lower Earnings Limit, it needs an update.

Start with documents and workflows that employees or managers use regularly. Review your sickness absence policy, employment contract templates, onboarding materials, manager scripts, payroll instructions, HR system settings, and absence categories.

Update especially:

• policy wording – remove outdated references to the three-day waiting period;
• payroll rules – make sure SSP can be calculated from day one;
• earnings calculations – review average weekly earnings for variable-hours and lower-paid employees;
• manager guidance – explain how to record the first full day of absence;
• employee communications – clarify when and how staff should report sickness;
• absence records – check linked absences before processing pay.

Common payroll mistakes to avoid

One common mistake is assuming that the old waiting-day rule still applies. From 6 April 2026, this can lead to underpayment. Another risk is applying the flat weekly rate to every employee without checking whether 80% of average weekly earnings is lower.

A third mistake is treating every sickness absence as a new, separate case. Some absences may be linked, especially when they happen close together. Linked absences can affect how SSP is handled, so your records should show previous sickness periods, return-to-work dates, and the reason for absence where it is appropriate to record it.

Employers should also avoid vague absence notes such as “off sick this week” without exact dates. AI tools, payroll systems, and HR reports all rely on structured data. The cleaner your absence records are, the easier it is to explain, calculate, and audit SSP.

How does this connect with Calamari?

The SSP 2026 changes make one thing very clear: sickness absence cannot be handled as a loose message in chat, an email thread, or a note added after payroll has already started. Employers need reliable records from the first day of absence, especially when SSP may now apply immediately.

This is where Calamari can support HR and payroll teams. Calamari helps companies organise absence data, standardise leave and sickness reporting, and give managers a consistent process for recording time off. 

When absence dates, work patterns, approvals, and employee records are easier to access, it becomes much simpler to check whether SSP rules have been applied correctly.

How absence management software can support SSP compliance

SSP calculations become easier when absence data is complete, consistent, and available in one place. Manual spreadsheets may work for a small team, but they can create problems when you manage multiple departments, irregular work patterns, or frequent short-term sickness.

A leave and absence system such as Calamari can help you organise sickness records, improve absence visibility, and give managers a consistent process for recording time off. You still need to apply the SSP rules correctly, but reliable records make that task faster and less exposed to error.

What to do next

The SSP 2026 changes make sick pay faster to access and broader in scope. For employers, the main task is to make sure policy, payroll, and absence records all follow the same rule: SSP may apply from the first full day, and the rate depends on the lower of £123.25 or 80% of average weekly earnings.

Review your sickness absence process now, test a few payroll scenarios, and give managers clear instructions. A cleaner process will help you pay employees correctly, reduce disputes, and stay ready for future compliance checks.