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December 21, 2025
This article explains the upcoming Statutory Sick Pay (SSP) reforms coming into effect in 2026, outlining what first-day sick pay means for employees and how employers will need to adapt their policies and payroll processes.
In 2026, there will be key changes to the way statutory sick pay (SSP) is managed. At the moment, employers only have to offer SSP from the fourth day of illness, which means that the first three days have to be taken as unpaid leave. Statutory sick pay is currently just £118.75 per week, which often leaves workers out of pocket.
Employers are allowed to choose their own policy on sick pay, with some offering full pay from the first day of illness. It’s also common for employers to request a sick note from a doctor for long-term illness. Statutory sick pay is the minimum requirement that has to be offered.
To be eligible for SSP, you have to be classed as an employee, have done some work under your contract, and earn an average of at least £125 per week.
On April 6 2026, there will be sweeping changes to the way SSP is handled. First, employers will have to pay sick pay from the first day of illness, so there will no longer be a three-day waiting period before SSP is due. This is part of the Employment Rights Bill.
The lower earnings limit will also be removed, so all employees will be eligible. And finally, the minimum amount will increase to 80% of normal pay, or £118.75, whichever is lower.
These changes are intended to give workers better support from their employers and ensure that low earners aren’t locked out of employment benefits.
If your employer offers statutory sick pay, then these changes will come in automatically from April 6th 2026. You don’t have to do anything to claim it, and your sick pay should be automatically paid to you with your usual method.
You will still need to observe company policy about how to report illness, such as calling your line manager on the first day of illness and providing updates on your anticipated return.
These changes could provide a much-needed financial lifeline for employees who are dealing with unexpected illness. They will no longer have to worry about having to take three days off work before their sick pay begins. This should remove some of the financial stress that comes with taking time off work.
The most obvious change for employers will be that costs will increase when employees take time off work due to illness. This could lead some employers to tighten their policies or have more in-depth back to work interviews to prevent abuse of the sick pay system.
It’s tempting to only see the increased costs that will occur as a result of these changes, but some companies might even see costs reduced as a result of these measures.
It’s far more likely that sick employees will take time off work and recover more quickly when they aren’t feeling the financial pressure. This could help to reduce instances of illness spreading through the office. Overall, it could lead to healthier workforces, as employees will be able to take responsibility for their own wellbeing.
Employers will need to update their payroll systems to ensure that their systems reflect these changes from day one. It will also be essential to update policies and employee contracts/handbooks to reflect these changes.
Greater Financial Security
First-day sick pay reduces financial pressure on employees and supports recovery without worry.
Healthier Workplaces
Encouraging ill employees to recover at home may reduce the spread of illness and improve long-term wellbeing.
Abuse of sick days is something that all employees are worried about, but punishing all workers with harsh conditions when they are genuinely ill is not something that is productive in the long term. By improving conditions for workers – particularly those on low income – it is hoped that these changes will create healthier work environments.
It should always be possible for workers to take time off work when they are genuinely ill, without worrying about the financial repercussions. These changes will ease pressure on employees and could even discourage sick individuals from coming into work and spreading sickness around the office.
Workers will no longer have to drag themselves into work for short-term illness and can instead recover at home, resulting in less long-term illness. We could also see a reduction in financial stress as a result of physical illness.
Highlights
FAQs
The new Statutory Sick Pay rules will apply from April 6, 2026.
Yes, the removal of the lower earnings limit means all employees will be eligible.
No, SSP should be paid automatically through payroll, provided company sickness reporting procedures are followed.
