What is the current situation?
Statutory Sick Pay (SSP) is currently payable from the fourth day of sickness absence at a flat weekly rate (£118.75 per week from 6 April 2025, reviewed annually).
To qualify for SSP, employees must earn more than the Lower Earnings Limit, which is currently £125 per week (also reviewed annually).
So what’s changing and when?
Under the Employment Rights Act, employers will be required to pay SSP from the first full day of sickness absence, removing the existing three-day waiting period.
The Lower Earnings Limit will also be abolished. As a result, all eligible employees will be entitled to SSP, paid at either the standard SSP flat rate or 80% of their weekly earnings, whichever is lower.
These changes will increase the number of employees who qualify for SSP and mean that payments must begin earlier in an absence.
The reforms are expected to come into force in April 2026.
What you need to do
The timing of these actions will depend on when the final details of the legislation are confirmed and when the changes take effect. However, employers can begin preparing now by:
Reviewing policies to reflect employees’ entitlement to SSP from the first day of sickness absence.
Working with payroll providers to update payment processes and assess any additional cost implications.
Reviewing attendance management procedures, including trigger points for management intervention in cases of repeated or short-term absence. Where no company sick pay is offered, paying SSP from day one may lead to an increase in short-term absences, making effective attendance management even more important. Policies and procedures should therefore be robust and aligned with business needs.
Ensuring managers are confident and well-equipped to apply attendance management procedures consistently, including carrying out return-to-work interviews. Targeted training should be provided where necessary.
New to Bhayani Law?
You don’t need to face the changes alone. Whether you require one-off expert input or ongoing HR and legal support, we offer flexible services tailored to your organisation’s needs.
Ongoing HR & Employment Law Support
Our Watertight HR Retainer service includes:
- Direct access to specialist employment law and HR advisors
- Regularly updated HR policies, contracts, and templates via our Watertight HR Hub
- Practical advice for day-to-day HR issues and strategic planning
- Access to monthly HR Spotlights
- Different plans to suit your organisation: Light, Standard or Premium.
One-off, Project-Based Support
If you need targeted assistance:
- Watertight OnSite Support – Bring our specialists into your organisation for short-term, high-impact support, ideal for periods of upheaval like restructures, policy rollouts, or crisis management.
- HR Training – Custom training sessions delivered by our employment law specialists and HR advisors, focusing on real-world scenarios like discrimination, tribunal preparation, or strategic HR compliance.
Not sure where to start?
Call us on 0333 888 1360 or contact us online and one of our team will get in touch.
Please note: Our ERA Employer Guides reflect our current understanding of the planned legal changes, but many of the reforms require consultations and regulations before implementation and are subject to change. The information provided in this document is for general informational purposes only and should not be considered legal advice.
