HR & Pay
Statutory Sick Pay Reform 2026
In force
Phased from 2026 (Employment Rights Bill)
Applies to
All UK employers
The Employment Rights Bill removes the lower earnings threshold for SSP and abolishes the 3 waiting days, making SSP payable from day 1 to all employees regardless of earnings.
Key Points
- SSP payable from day 1 (waiting days removed)
- Lower earnings threshold removed (so previously excluded staff become eligible)
- Existing weekly cap continues to apply
- Employer rebate not currently planned for SMEs
Practical Steps For Your SME
- Update payroll software to reflect day-1 SSP
- Review absence policies and contracts
- Forecast cash impact for high-turnover or seasonal workforces
- Tighten return-to-work interview process to manage abuse risk
Penalties
HMRC penalties for underpayment plus tribunal claims for unlawful deduction.
Free Resource
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