From April 2026, the rules for calculating statutory sick pay (SSP) change significantly. The reforms simplify access for employees, but they also increase costs and admin for employers.
The biggest change? The three-day waiting period is gone. SSP is now payable from day one.
For most employees, this will be welcomed. For employers, it means increased admin so tighter processes are needed to maintain compliance. Here’s what you need to know.
How SSP works under the new rules
From April 2026, statutory sick pay is payable from the first day of sickness. The amount depends on the employee’s average weekly earnings (AWE):
- Lower-paid employees typically receive 80% of their AWE
- Higher-paid employees usually receive the statutory flat rate
The amount payable is then calculated using the following process:
- Identify the relevant period of earnings (this is normally 8 weeks prior to the sickness)
- Calculate average weekly earnings (subject to Class 1 NIC, paid in the relevant period divided by 8)
- Apply the 80% cap (identify 80% of Average Weekly Earnings)
- Pay the lower amount (if 80% of AWE is lower than the £123.25 flat rate, then you pay the 80% and vice versa).
The current SSP rate is updated annually; check gov.uk for the latest figures.
What employers can do about claims
The revised statutory sick pay regime removes the lower earnings limit and pays from day one. That’s good for employees, but it makes absence management more important than ever.
Employers are entitled to ensure SSP claims are valid. Here’s how:
Verify the evidence
Self-certification (first 7 days)
Employees can self-certify sickness for the first seven calendar days. Employers should:
- Require a formal self-certification form
- Ask for clear information about the reason for absence
Fit notes (after 7 days)
For absences lasting seven days or more, employers can require a fit note from a GP, nurse, pharmacist, or physiotherapist.
Check that:
- The dates match the absence
- The note states “not fit for work” or “may be fit for work”
If a fit note says “may be fit for work,” consider reasonable adjustments. If adjustments can’t be agreed, the employee is treated as not fit for work for SSP purposes.
Investigate questionable claims
Where there are genuine concerns, employers can:
- Refer the employee to occupational health
- Request a GP report (with consent)
- Ask HMRC to arrange a medical examination
Patterns of frequent short-term absence should be documented and addressed through review meetings. Often these indicate a capability issue rather than abuse of statutory sick pay.
Follow the procedural requirements
If you believe an employee isn’t entitled to SSP, you must:
- Issue an SSP1 form within seven days of the first sick day
- Clearly explain why SSP isn’t payable
Note: SSP can’t normally be withheld just because a fit note is late.
How we can help
The changes to statutory sick pay increase both complexity and risk, especially if your payroll systems aren’t regularly reviewed or sickness absence is frequent.
We support employers with SSP calculations, payroll compliance, absence policy design, and day-to-day payroll through our bureau service.
Need help with SSP under the new rules? Get in touch, we’ll make sure you’re compliant. |
