11 June 2026
Statutory Sick Pay (SSP) remains one of this year’s biggest changes to affect payroll professionals with the implementation of the Employment Rights Act 2025. Here is a list of rules to remind yourself to stay compliant:
Eligibility:
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the Lower Earnings Limit (LEL) has been removed from 6 April 2026. All employees with an employment contract qualify, regardless of earnings, provided they meet the basic SSP conditions (e.g. being an employee, sick and off work, within the maximum entitlement period)
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employees previously ineligible to SSP due to earnings being under the LEL, can now receive sick pay on or after the 6 April 2026
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From 6 April 2026, a Period of Incapacity for Work (PIW) can be formed by a single qualifying day of sickness i.e., no more waiting days. This makes it easier for short or intermittent absences to attract SSP and counts days more straightforwardly towards the 28‑week cap.
Calculation:
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the flat rate of SSP is £123.25 per week
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employees receive the lower of:
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80% of their Average Weekly Earnings (AWE), or
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the SSP flat rate, calculated over 8 weeks
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payments will be rounded up to the nearest whole penny
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AWE is calculated over the 8-week period ending on the last payday before sickness, counting backward
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employees already receiving SSP before the 6 April 2026 will receive the uprated flat rate, so they are not disadvantaged
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anyone on SSP before the 6 April, earning between £125.00 and £154.05 per week, will receive the flat rate of £123.25.
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for linked periods of incapacity, (within 56 days), the initial 8-week AWE will be used to calculate sick pay
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SSP is payable from the first qualifying day of sickness (no waiting days).
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maximum entitlement remains up to 28 weeks of SSP for a continuous or linked period of sickness
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enforcement of SSP rights has been strengthened, with disputes now routed through the new Fair Work Agency (FWA) and tribunals where needed, replacing some of the older HMRC dispute processes.
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