Statutory Sick Pay in 2026/27: What Small Employers Need to Know
From 6 April 2026, Statutory Sick Pay is payable from the first day of sickness and every employee qualifies regardless of earnings. In 2026/27 it is £123.25 a week, or 80% of average weekly earnings if that is lower, for up to 28 weeks.
This post explains what changed, how much to pay, how to calculate it and what small employers should update.
What changed on 6 April 2026
Two big changes came in under the Employment Rights Act 2025.
The three waiting days were abolished. SSP is now payable from the first day of sickness, rather than the fourth.
The lower earnings limit was removed. Previously, employees earning below a threshold did not qualify. Now all employees do, and lower earners receive a percentage of their pay instead.
The weekly rate also increased for the new tax year, from £118.75 to £123.25.
How much is SSP?
For 2026/27, SSP is the lower of:
£123.25 a week, or
80% of the employee's average weekly earnings
In practice, most employees receive the flat rate. The 80% rule only bites for employees whose average weekly earnings are below about £154. Someone earning £100 a week, for example, would receive £80.
SSP is paid for up to 28 weeks in any period of sickness, including linked spells.
How to calculate it
SSP is paid for qualifying days, which are normally the days the employee is required to work. To work out a daily rate, divide the weekly SSP by the number of qualifying days in the week.
A five-day worker on the full rate gets £123.25 ÷ 5 = £24.65 per qualifying day
A three-day worker on the full rate gets £123.25 ÷ 3 = £41.08 per qualifying day
An employee with average weekly earnings of £100 and a five-day week gets 80% of £100 = £80 a week, or £16 a day
Average weekly earnings are normally calculated over the eight weeks before the sickness began, using earnings subject to National Insurance. Your payroll software should do this, but check the setup.
Who qualifies?
Employees who are too ill to work qualify, as long as they notify you and provide evidence in line with the rules. Workers who are not employees are generally not covered.
Evidence and notification
Employees can usually self-certify for the first seven calendar days of sickness. After that, you can ask for a fit note from a healthcare professional. Your sick pay policy can set out when and how employees should notify you, such as by calling their manager before the start of their shift. Reasonable notification rules are fine, but you should be flexible where there is a good reason.
What small employers should do now
Check payroll. Make sure SSP is being calculated from day one, at the right rate, and that lower earners are included.
Update contracts and your sick pay policy. Any wording that refers to waiting days, a lower earnings threshold or the old rate is out of date.
Check your occupational sick pay. If you pay more than SSP, make sure it is at least as generous from day one, or that the contract says what it is intended to be.
Tell your managers. They should know that employees no longer wait three days.
Communicate with staff. A short note about the change reduces confusion.
Keep records. Dates of absence, notification and evidence.
Managing absence fairly
Paying SSP from day one does not mean you cannot manage absence. You can still hold return to work conversations, review patterns and use your absence procedure. What you need to avoid is penalising genuine illness or treating disability-related absence like any other. Our posts on return to work meetings and absence meetings explain how.
Check the figures
SSP rates are updated each April. The numbers in this post apply to 2026/27, and you should confirm them against GOV.UK before you rely on them or update your payroll.