According to HMRC’s Agent Update Issue 142, important changes to Statutory Sick Pay (SSP) came into effect from 6 April 2026 under the Employment Rights Act 2025. These updates could have a direct impact on your payroll costs, processes, and compliance obligations.
Key changes employers need to know
- Lower Earnings Limit removed
All eligible employees now qualify for SSP, regardless of income. Payments are set at 80% of normal weekly earnings or £123.25 (whichever is lower).
This means more employees, particularly lower earners, are now entitled to SSP. - Waiting days abolished
SSP is now payable from the first full day of sickness, rather than from day four.
As a result, businesses may see an increase in claims, especially for short-term absences. - Transitional rules apply
The applicable SSP rules depend on when the sickness absence began.- Absences starting on or after 6 April 2026 follow the new rules
- Absences starting before this date remain under the previous system (unless stated otherwise)
Why this matters for your business
These changes make SSP more accessible, but also more complex to manage. Without proper handling, businesses risk:
- Increased payroll costs
- Incorrect SSP calculations
- Non-compliance with HMRC requirements
How we can help
Progress Accountants can support you in navigating these changes with confidence. We can:
- Review and update your payroll processes for SSP compliance
- Ensure your payroll software is correctly configured, including transitional protections
- Advise on cost implications and absence policies
- Provide ongoing support to keep you compliant with evolving legislation
Get in touch today to ensure your business is fully prepared for the new SSP rules.