Statutory Sick Pay (SSP) is changing from April 2026, with important reforms that employers should be aware of ahead of the new tax year. These changes will affect who qualifies for SSP, how much some employees receive, and how sickness absence may need to be reported and processed through payroll.
From 6 April 2026, SSP will be payable from the first day of sickness absence, as the current three unpaid “waiting days” are being removed. At the moment, eligible employees generally only receive SSP from the fourth qualifying day of sickness. From April 2026, this will change so that eligible employees can receive SSP from day one. For employers, this means that shorter periods of sickness absence, including some single-day absences, will now need to be considered for SSP where they would not previously have qualified.
Another significant change is the removal of the lower earnings threshold. Under the current rules, employees must earn at least the Lower Earnings Limit to qualify for SSP. From April 2026, that minimum earnings requirement will no longer apply, meaning more part-time, low-hours and lower-paid employees will now be eligible.
For employers, the biggest practical impact is likely to be on how sickness absence is recorded and reported. Because SSP may now apply from the first day of absence, and because more employees may qualify, payroll teams are likely to need visibility over a greater number of sickness absences than before. This could include single-day absences, occasional days off sick, and shorter-term absences that may previously not have been reported to payroll at all.
If these absences are not recorded clearly and consistently, there is a risk that SSP could be calculated incorrectly, employees may be paid inaccurately, and payroll records may not reflect the new rules. That means now is a good time for employers to review how sickness absence is currently reported internally and whether their existing payroll processes capture all the information needed to apply the new legislation correctly.
In practical terms, employers should be thinking about whether all sick dates are being recorded, including one-off or short absences, whether line managers and employees understand how sickness should be reported, and whether payroll teams or providers are receiving enough detail to process SSP accurately. For many businesses, even small changes to timesheets, absence reporting or approval processes could make a significant difference in helping to avoid errors once the new rules come into force.
Reviewing processes in advance will help employers prepare for what is ahead. Businesses with part-time staff, variable-hours employees, or more manual payroll and absence reporting processes may feel the impact most.
At EQ, we are continuing to monitor the implementation of these changes and can support employers in reviewing their payroll reporting and absence recording procedures ahead of April 2026. If you would like to discuss how the new SSP rules may affect your payroll operation or internal processes, please get in touch with our team.