Statutory Sick Pay from Day 1 — What It Means for Your Business
The Employment Rights Act 2025 made the biggest changes to Statutory Sick Pay since it was introduced in 1983. The three-day wait is gone. The earnings threshold is gone. Every employee qualifies from their first day at work.
What changed?
Before April 2026, Statutory Sick Pay had two significant barriers that excluded millions of workers. First, there were three "waiting days" — you didn't pay SSP for the first three qualifying days of absence, so a week-long illness might cost the employer nothing at all in SSP. Second, there was a lower earnings limit of £123 per week — employees earning below this threshold didn't qualify for SSP at all.
The Employment Rights Act 2025, specifically sections 8 to 10, abolished both of these. From 6 April 2026:
- No waiting days. SSP is payable from the first day of absence.
- No lower earnings limit. All employees qualify regardless of what they earn.
- Day-1 employment right. The right to SSP applies from the first day of a job — there is no minimum service requirement.
The SSP rate for 2026/27 is £123.25 per week, equivalent to £24.65 per qualifying day for a standard five-day worker.
Who is affected?
Every employer in the UK with at least one employee is affected. But the changes hit hardest in sectors where part-time and low-paid work is common:
- Retail and hospitality — high numbers of part-time workers on low wages who previously fell below the earnings threshold
- Social care — workers on zero-hours or variable-hours contracts often earning near minimum wage
- Agriculture and seasonal work — workers employed for short periods who would not previously have qualified
- Any business with recent hires — new starters are now eligible from day one, whereas previously employers had no obligation in the early days of absence
The Government estimated at the time of the Act that around 1.5 million workers who previously had no SSP entitlement now qualify.
What employers must do
If you have not already done so, you need to take the following actions:
- Update your payroll processes. Remove any rules that excluded the first three days of absence from SSP calculations. If you use payroll software, check that your provider has updated for the April 2026 changes — most major providers updated automatically, but verify.
- Remove earnings threshold checks. Any process that checked whether an employee earned at least £123/week before triggering SSP must be updated. All employees now qualify regardless of pay.
- Update your sick pay policy. Your employee handbook, contract terms, and any written sick pay policy need to reflect the new rules. References to "qualifying days before SSP is payable" or minimum earnings thresholds are now incorrect.
- Brief line managers. Managers handling sickness absence need to understand the new rules. In particular: a new starter calling in sick on their third day of work is entitled to SSP from day one.
- Review occupational sick pay schemes. If you run a company sick pay scheme that tops up SSP, check whether it references SSP eligibility criteria in a way that might inadvertently exclude workers who now qualify for SSP for the first time.
Worked examples
Example 1: Part-time cleaner, 2 days per week, earnings £85/week
Before April 2026: Earning below the £123 lower earnings limit — no SSP entitlement.
From April 2026: Fully entitled to SSP from day 1 of absence.
Daily rate: £123.25 ÷ 2 qualifying days per week = £59.38 per sick day.
Example 2: Full-time warehouse worker, starts Monday, calls in sick Wednesday
Before April 2026: Three waiting days meant no SSP was payable for a single-week absence.
The worker also needed 4 consecutive days off (including waiting days) to trigger SSP at all.
From April 2026: SSP is payable from the first day of absence (Wednesday).
Daily rate: £123.25 ÷ 5 qualifying days = £24.65 per sick day. One day off = £24.65 owed.
Example 3: New starter, first week on the job, off sick for 3 days
Before April 2026: Would need 4 qualifying days off to trigger SSP. 3-day absence = nothing.
From April 2026: 3 days off = 3 × £24.65 = £71.25 owed in SSP,
regardless of how recently they joined.
Frequently asked questions
Does SSP still require a minimum number of consecutive sick days?
No. Previously, SSP was only triggered if the employee was off sick for at least 4 consecutive "qualifying days" (working days). The three waiting days counted toward this. From April 2026, SSP is payable for any qualifying day of absence, including a single day off.
Does the employee still need a sick note (fit note)?
For absences up to 7 calendar days, employees can self-certify — they don't need a GP fit note. For absences over 7 days, a fit note from a GP or other medical professional is still required. This has not changed.
Can I still run a company sick pay scheme that's more generous than SSP?
Yes. You can continue to pay occupational sick pay above SSP levels. Just ensure the scheme rules don't accidentally exclude workers who now qualify for SSP — for example, rules that reference the old lower earnings limit should be updated.
Can I reclaim SSP from HMRC?
No. The employer reclaim scheme was abolished in 2014. Employers bear the full cost of SSP. The Government's position is that SSP is a cost of employment and should be treated as such.
What if the employee is on a zero-hours contract?
Zero-hours contract workers who are employees (not self-employed) are entitled to SSP in the same way as other employees. SSP is calculated based on their average weekly earnings over the 8 weeks before the illness — if they had no earnings in that period, a different calculation applies. From October 2026, shift notice and cancellation payment rights will apply to zero-hours workers. The right to guaranteed hours based on a reference period is a separate provision expected in 2027.
Sources:
Employment Rights Act 2025, sections 8–10 (SSP reform).
HMRC Statutory Sick Pay guidance.
ACAS guidance on Statutory Sick Pay.
HMRC SSP rates for 2026/27 (£123.25/week).
Last updated: April 2026.