Statutory Sick Pay Eligibility (April 2026-)

What is changing?

Employees are currently eligible for statutory sick pay (SSP) if they are sick for a period of four days or more. Low-paid employees who earn less than the lower earnings limit are not eligible for SSP.

The Employment Rights Act 2025 removes both these requirements:

• SSP will be available to employees from day one of their incapacity for work.

• All employees will be eligible, regardless of their earnings.

If an employee earns less than the weekly SSP rate, they will be entitled to SSP at the rate of 80% of their normal weekly earnings.

Unlike most measures included in the Employment Rights Act 2025, the changes will apply in Northern Ireland, as well as England, Scotland and Wales.

Employers with no contractual sick pay will see the biggest impact

The change will have the most implications for employers that do not already provide contractual sick pay from the first day of illness. These organisations should prepare for:

• a potential increase in sickness absence; and

• higher sick pay costs.

They will need to make sure their sickness absence policies and payroll systems are updated to reflect the new eligibility rules.

Training line managers on the effective management of short term absence will help organisations to adapt smoothly to the new rules and keep any increase in absence to a minimum. Training should include how to monitor absence and how and when to carry out absence reviews.

Employers that already provide day-one sick pay may also be affected

There will also be potential implications for employers with existing day-one sick pay provision. These employers may find that their sick pay policies no longer represent an attractive differentiating feature to potential and current employees.

Organisations that wish to stand out as an employer of choice may need to reconsider their benefits offering.

There will be new enforcement powers

The new Fair Work Agency (FWA), which is established under the Employment Rights Act 2025, will have powers to enforce the payment of SSP. The FWA will be able to require employers to pay a penalty in addition to the unpaid SSP. Currently, it is down to employees to bring an employment tribunal claim if they are not paid the correct SSP.

What happens next?

The changes to SSP eligibility will come into force in April 2026.