Statutory Sick Pay Changes (with worked examples)

Key Changes to Statutory Sick Pay from 6^th April 2026

The Lower Earnings Limit (LEL) will be removed, allowing all employees to access SSP regardless of earnings.
SSP will be calculated as 80% of an employee’s average weekly earnings (AWE) or the current flat rate, whichever is lower.
Waiting days will be eliminated, enabling eligible employees to receive SSP from the first full day of sickness absence.

Calculating Average Weekly Earnings and SSP Payments:

SSP for those earning below the flat rate will be based on 80% of their AWE, calculated over a relevant 8-week period.
Payments will be rounded up to the nearest whole penny.
For linked periods of incapacity (within 56 days), the initial period’s AWE will be used for subsequent calculations.

There is already no length of service eligibility criteria on SSP, however, employees would have needed to earn at least the lower earnings limit, which may be demonstrated in one week’s pay. With the abolishment of the 3-day waiting and the lower earnings limit, this means ALL employees will be eligible for SSP from their first day of employment.

These changes are expected to increase both the number of employees eligible for SSP and the speed at which payments begin, potentially impacting patterns of short-term absence and placing administrative pressure on payroll processors.

In summary:

£123.25 per week or 80% of their average weekly earnings (whichever is lower)
There is no pro‑rata calculation based on working 1, 3, or 5 days per week. SSP becomes a flat weekly entitlement, paid from Day 1 of sickness.

Example 1

An employee is a weekly paid employee, who is absent from work from 20^th – 26^th April 2026, returning to work 27^th April 2026.

Their weekly pay fluctuates and his previous 8 weeks pay prior to the absence is as follows:

£60.00, £87.00, £140.00, £120.00, £45.00, £97.00, £187.00 & £52.00 (Total: £788.00).
Average weekly earnings (AWE): £788.00 / 8 = £98.50
SSP entitlement: £98.50 x 80% = £78.80

Example 2

An employee is a monthly paid employee and is paid on the last Friday of each month. They are absent from work 4^th – 17^th May 2026, returning to work 18^th May 2026.

Their last 2 monthly payments (March & April 2026) were: £3,250.00 & £3,750.00 (Total: £7,000.00).
7,000.00 / 2 = £3,500. £3,500 x 12 = £42,000.
Average weekly earnings (AWE): £42,000 / 52 = £807.69
SSP entitlement: £123.25 per week

Example 3

An employee earns an average of £300 per week:

80% of £300 = £240
SSP rate = £123.25 (from 6^th April 2026)
The employee is entitled to receive £123.25 per week.

Example 4

An employee earns an average of £100 per week:

80% of £100 = £80
SSP rate = £123.25
The employee is entitled to receive £80 per week (because it’s the lower amount).

These changes apply to employees of all ages, including 16 and 17 years olds. There is no minimum age requirement for Statutory Sick Pay under the updated legislation.

Example 5

A 17‑year‑old part‑time worker works 10 hours per week at £7.55/hour → average weekly earnings £75.50:

80% of £75.50 = £60.40
SSP payable = £60.40 per week (because it’s lower than £123.25)

Daily rates based on qualifying days worked each week:

If an employee is entitled to SSP of £123.25 the following rounding occurs:

Number of working days in week	Unrounded daily rates	Weekly amount
1	£123.25	£123.25
2	£61.62	£123.25
3	£41.0833	£123.25
4	£30.8125	£123.25
5	£20.65	£123.25
6	£20.5416	£123.25
7	£17.60	£123.25

As payments are always rounded up to the nearest whole penny, if an employee is entitled for the full SSP rate, the following rounding occurs:

An employee works 3 days per week, is absent for 1 day = £41.09
An employee works 4 days per week, is absent for 1 day = £30.82
An employee works 6 days per week, is absent for 1 day = £20.55

Eligibility and Transitional Protections:

Employees earning below the LEL who are off sick on or after 6 April 2026 will be eligible for SSP.
Those serving waiting days on 6 April 2026 will receive SSP from that date onward.
Employees already receiving SSP before 6 April 2026 will be transitionally protected to prevent a reduction in their SSP rate. They will continue to receive the uprated flat rate until they return to work, exhaust their entitlement, or their contract ends.
Employees earning between £125.00 and £154.05 per week will receive the flat rate of £123.25 during their continuous sickness absence if they were off sick and in receipt of SSP before 6 April 2026.

If you have any queries regarding the management of Statutory Sick Pay, or need support with updating policies, procedures and processes in preparation for the approaching changes to legislation, please do reach out to us.