Key Changes and Implementation
When do the new SSP reforms take effect?
The changes are scheduled to be implemented in April 2026.
What is the “Day 1” payment rule?
Currently, there is a three-day “waiting period” before SSP begins, and it is paid only for full days of absence. Under the new reforms, these “waiting days” will be removed, meaning employees will be entitled to SSP from the very first full day of absence due to sickness or injury.
Is the Lower Earnings Limit (LEL) being removed?
Yes. The reforms include the removal of the LEL, meaning employees who previously earned too little to qualify for SSP will now be eligible.
What is the new rate of SSP?
From 6 April 2026, the new weekly SSP flat rate will be £123.25.
Under the new rules, an employee will receive either the SSP flat rate or 80% of their normal weekly earnings, whichever is lower.
Eligibility and Worker Types
Who is eligible for the new SSP?
An employer is responsible for paying SSP if they pay Class 1 National Insurance contributions for the worker. This means it is broad legislation that does not just cover those with “employee” status but also includes “workers”.
The reforms do not change the scope of eligibility from an employment status perspective. SSP will continue to apply to those on zero-hours contracts, casual workers, agency staff, and bank staff — provided the employer is paying Class 1 NICs.
Does this apply if an employee is off to care for a sick child?
No. SSP applies only when the employee or worker is unfit for work due to their own illness. It does not cover parental leave or childcare issues. There are other entitlements available to support these scenarios.
Calculating Pay
How do I calculate “normal weekly earnings” for variable or zero-hours staff?
For someone on a zero-hours contract, SSP is based on their average weekly earnings (AWE) during the “relevant period”.
To determine the relevant period, you need to identify:
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The date of their last normal payday before the start of the period of incapacity for work; and
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The date of the last payday that fell at least eight weeks before that date.
Should overtime be included in the calculation?
Yes. When calculating AWE, all earnings that are liable to Class 1 NICs must be included.
What happens if an employee goes home sick mid-shift?
This will depend on how your contract and policy are written.
SSP is payable for full days of absence; however, employers can implement their own rules and practices, provided the statutory minimum entitlement is maintained.
Documentation and Evidence
Do employees still need a “fit note” from a doctor?
Yes. The rules on documentary evidence are not changing. Employees can self-certify for the first seven consecutive calendar days. A Fit Note is required from the eighth consecutive calendar day onwards.
Can I withhold SSP if the employee doesn’t provide documentation?
Yes. To be entitled to SSP, workers must inform their employer that they are unable to work before the deadline specified in their contract or policy.
If no deadline is specified, notification must be provided within seven days. Employees may lose some of their SSP entitlement if they fail to notify their employer in time.
Contractual and Financial Impact
Why is October a critical deadline?
During the webinar, we discussed the importance of reviewing existing sick pay terms sooner rather than later, as further reforms are planned that will make it virtually impossible for employers to implement contractual changes without employee agreement.
At the time of the webinar, this reform was due to come into effect in October. However, the Government has since confirmed that it will be postponed until January 2027, giving employers additional time to review existing contractual terms.
Can small businesses or charities reclaim SSP from the government?
Unfortunately not. This ability was abolished in 2014.
What is the Fair Work Agency?
The Fair Work Agency is a new enforcement body with the power to audit employers and investigate compliance with sick pay obligations retrospectively.
It will have legal authority to enter workplaces, request access to information, issue fines and penalties, and even bring claims before an Employment Tribunal where there is non-compliance.
