Statutory Sick Pay 2026/27: What Changed for Employers
Statutory Sick Pay changed more from 6 April 2026 than it has in years, and a lot of small employers are still running payroll on the old rules without realising it. If you’re still applying “waiting days” before SSP kicks in, or excluding low earners, you’re doing it wrong under the current rules. This guide from Filing Accounts UK explains exactly what changed, the current rate, and how to calculate it correctly.
At Filing Accounts, we help small employers run compliant payroll, including SSP calculations. This sits alongside your other employer duties u2014 see our guide on auto-enrolment pension duties.
What Changed on 6 April 2026
Under the Employment Rights Act 2025, two long-standing SSP rules were removed entirely for sickness absences starting on or after 6 April 2026:
- Waiting days abolished: SSP was previously unpaid for the first 3 “waiting days” of any sickness absence. It’s now payable from the very first qualifying day.
- Lower Earnings Limit removed: previously, employees earning below the Lower Earnings Limit didn’t qualify for SSP at all. That earnings floor no longer applies u2014 every employee now qualifies, regardless of how little they earn.
To balance the removal of the earnings floor, a new calculation method was introduced alongside it: lower earners now receive 80% of their average weekly earnings instead of the full flat rate, ensuring SSP never actually exceeds what a low earner would normally have taken home.
The 2026/27 Rate
SSP for 2026/27 is the lower of:
- £123.25 per week (the standard flat rate), or
- 80% of the employee’s average weekly earnings
For a typical five-day-a-week employee on the full flat rate, that works out to £24.65 per qualifying day. Employees whose average weekly earnings are below £154.06 (the point at which 80% equals £123.25) will receive the 80% figure instead of the flat rate.
Worked Example
An employee working a standard Monday-to-Friday week (5 qualifying days) is off sick for 1 day. Under the current rules, SSP is due for that single day from the outset u2014 there’s no waiting period to serve first. At the standard rate, that’s £123.25 ÷ 5 = £24.65 for the day.
A part-time employee earning £100 a week on average would instead receive 80% of that (£80) as their weekly SSP rate, since it’s lower than the £123.25 flat rate u2014 divided across their qualifying days in the same way.
Who Qualifies
- They’re classed as an employee and have done some work under their contract
- They’ve been off sick for at least 1 qualifying day
- They’ve notified you of their sickness within your required timeframe
- They haven’t already used their maximum 28-week SSP entitlement
Note that the previous earnings threshold is gone u2014 there’s no minimum earnings test standing in the way of eligibility anymore.
Maximum Entitlement and Linked Periods
SSP runs for a maximum of 28 weeks per period of sickness, or per set of “linked” periods u2014 separate absences within 56 days of each other are treated as one continuous period for this purpose, rather than resetting the clock each time.
Employers Can’t Reclaim SSP
SSP is a direct cost to the business, not something reclaimed from HMRC. The old Percentage Threshold Scheme, which once let some employers recover a portion of SSP costs, ended back in 2014 and hasn’t returned. Budget for sickness absence as a genuine payroll cost, not something offset elsewhere.
Enforcement: A New Body Is Watching
The newly established Fair Work Agency holds enforcement powers over SSP compliance from April 2026, with the ability to investigate underpayment and take formal action against non-compliant employers. This is a meaningful shift u2014 SSP compliance is no longer purely a matter an employee would need to pursue individually through a tribunal.
SSP at a Glance (2026/27)
| Item | Detail |
|---|---|
| Weekly rate | Lower of £123.25 or 80% of average weekly earnings |
| Daily rate (5-day week, full rate) | £24.65 |
| Waiting days | Abolished — paid from day one |
| Lower Earnings Limit | Removed — all employees qualify |
| Maximum duration | 28 weeks per period (or linked periods within 56 days) |
| Can employers reclaim it? | No |
| Enforcement | Fair Work Agency, from April 2026 |
Common Mistakes to Avoid
Still Applying the Old Waiting Days Rule
Payroll systems or manual processes not updated since April 2026 may still be withholding the first 3 days incorrectly.
Excluding Low Earners
The Lower Earnings Limit no longer applies — low-earning employees now qualify, calculated at 80% of their average weekly earnings instead of the flat rate.
Not Tracking Linked Sickness Periods
Separate absences within 56 days count toward the same 28-week maximum, rather than resetting the entitlement each time.
Frequently Asked Questions
What is the SSP rate for 2026/27?
The lower of £123.25 per week or 80% of the employee’s average weekly earnings.
Is SSP still paid from day 4 of sickness?
No. From 6 April 2026, the 3 waiting days were abolished, and SSP is now payable from the first qualifying day.
Do low earners qualify for SSP now?
Yes. The Lower Earnings Limit was removed from 6 April 2026, so all employees now qualify, calculated using the 80% average weekly earnings formula where relevant.
Can employers claim SSP costs back from HMRC?
No. SSP is a direct employer cost, with no reclaim mechanism currently available.
Need Help With Payroll Compliance? Talk to Filing Accounts UK
At Filing Accounts, we help small employers run accurate, compliant payroll, including the current SSP rules, so nothing gets calculated on outdated assumptions.
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