Employers should review attendance management procedures and payroll systems as Statutory Sick Pay (SSP) will soon be payable from the very first day of sickness absence.
What is the current situation?
SSP is currently paid from the fourth day of sickness absence at a flat weekly rate.
To qualify, employees must earn above the Lower Earnings Limit, currently set at £125 per week.
What’s changing and when?
The Employment Rights Bill will require employers to pay SSP from the first full day of sickness absence, removing the current three-day waiting period.
It will also remove the Lower Earnings Limit, meaning all eligible employees will be entitled to either the SSP flat rate or 80% of their weekly earnings, whichever is lower.
These reforms will increase the number of employees who qualify for SSP and mean that payments will begin sooner than under the current rules.
The changes are scheduled to take effect in April 2026.
What you need to do now
- Update your sickness absence policies to reflect day-one SSP entitlement and work with payroll teams to adjust payment systems. Assess the likely financial impact on your organisation.
- Review your attendance management processes, including the trigger points for managerial intervention in repeated absence cases. If your business does not offer enhanced company sick pay, introducing day-one SSP could lead to an increase in short-term absences.
- Ensure managers are trained and confident in applying absence management procedures, including carrying out return-to-work interviews effectively.
