Many of you are more familiar than you would perhaps like to be with the complex machinations of statutory sick pay. What with waiting days, periods of incapacity for work and earnings limits – it has been a nightmare to administer for years. Until now.
From 6 April 2026, Statutory Sick Pay has been overhauled as part of the wider new Employment Rights Act.
So, what is changing?
- No more waiting days or periods of incapacity for work. SSP is payable from day one of absence.
- There is no longer an earnings limit that has to be reached in order to be entitled to SSP.
- SSP will be paid out at a rate of £123.25 per week or 80% of average weekly earnings (using the last 8 weeks prior to sickness) if lower.
So, what is not changing?
- The 28-week count stays in place – so sick pay can only be paid out for a total of 28 weeks and then it stops unless the employee returns to work for at least 8 weeks. After this, the SSP count resets to zero.
- Linking periods will continue as before, so if an employee returns from sickness and then is sick again, within 8 weeks, this will be treated as part of the initial 28 week count with the SSP rate unchanged.
- You can still require a sick note (fit note) after the first 7 days of self-certified sickness but you might want to check your employment contract.
Practical impact
Everyone will be entitled to SSP from day one. The only exception would be someone who is on zero hours and who has not worked in the 8 weeks prior to the period of sickness. Everyone will be subject to the 28-week count.
We will need to know all dates of sickness absence where occupational sick pay does not apply. We may need more information to calculate SSP rates where the employee is working variable hours on a zero-hour contract.
Transitional Rules
There are some complex transitional rules in place for those who are already off sick at the time of the change, principally regarding those that were not entitled under the old rules due to earnings threshold and/or those who were forming a period of incapacity for work across the transition date. Please contact us for more information if you have an employee in this position.
In Summary
A far more straightforward system for employees to understand and easier to administer. However, we will need more information, and we will need to do some average pay calculations. Oh, and it will cost employers more, and you might want to take a look at your employment contracts too. The big question – will it lead to more days lost to sickness? We will have to wait and see…