HM Revenue and Customs (HMRC) has confirmed a significant boost to sick pay for all employees following a law change in April 2026. The new rules, introduced under the Employment Rights Act 2025, remove the waiting period for Statutory Sick Pay (SSP) and abolish the minimum earnings threshold, making SSP accessible to more workers from the very first day of illness.
Key Changes to Statutory Sick Pay
As of April 6, 2026, SSP is payable from the first full day of sickness absence, rather than the fourth day as previously required. This change eliminates the three-day waiting period that meant workers had to be off sick for three days before receiving any pay. Additionally, the Lower Earnings Limit, which previously required workers to earn at least £125 per week to qualify, has been removed. Now, all eligible employees, regardless of their earnings, are entitled to SSP.
The weekly rate of SSP has also increased from £118.75 to £123.25. Workers who earn less than £123.25 per week will receive 80% of their average weekly earnings, or the SSP flat rate, whichever is lower. This ensures that lower-paid employees are not left without financial support when they are ill.
Impact on Workers
The government estimates that these changes will benefit around 15 million workers across the United Kingdom, including Northern Ireland. The new rules apply to sickness absences starting on or after April 6, 2026. For absences beginning before this date, the previous rules continue to apply.
Under the new system, workers can receive SSP for up to 28 weeks. Employers calculate the payment based on average weekly earnings over an eight-week period. To qualify, workers must be classified as employees, have performed some work for their employer, and be ill for at least one full working day. They must also notify their employer of their inability to work within the deadline set by the employer, or within seven days if no deadline is specified.
Government and Official Statements
Confirming the changes, HMRC stated: "From 6 April 2026 the Employment Rights Act 2025 introduces two major changes to Statutory Sick Pay (SSP). Removal of the Lower Earnings Limit: All eligible employees will be entitled to SSP regardless of income. SSP will be paid at 80% of normal weekly earnings or the uprated weekly flat rate of £123.25, whichever is lower. Removal of the Waiting Period: SSP will be paid from the first full day of sickness absence, not from day four."
The Department for Work and Pensions (DWP) described the new rate as a "fairer rate" that balances financial security for workers with the costs to businesses, while maintaining incentives for people to return to work. Secretary of State for Work and Pensions Liz Kendall MP commented: "For too long, sick workers have had to decide between staying at home and losing a day’s pay or soldiering on at their own risk just to make ends meet. No one should ever have to choose between their health and earning a living, which is why we are making this landmark change. The new rate is good for workers and fair on businesses as part of our plan to boost rights and Make Work Pay, while delivering our Plan for Change."
Additional Considerations
Workers who have received SSP within the last eight weeks, including a three-day waiting period, will only be paid for the first three working days of a new sickness absence. The changes are designed to make SSP more accessible and remove barriers for lower-paid employees, ensuring that financial concerns do not prevent workers from taking time off when they are ill.
