Major Changes to Statutory Sick Pay (SSP) Coming in 2026  

The Current SSP System  

Statutory Sick Pay (SSP) is a financial safety net for employees unable to work due to illness. Under current rules, only workers earning above £123 per week qualify for SSP, and payments start on the fourth working day of absence.  

This system often forces employees to work despite being unwell, leading to the spread of illnesses in workplaces and reduced productivity.  

What’s Changing?  

To create a fairer and more supportive sick pay system, the UK government is removing earning restrictions and eliminating the waiting period for payments. The two major reforms are:  

✅ SSP eligibility for all employees, regardless of income level.  

✅ SSP payments from the first day of illness, rather than the fourth.  

Additionally, SSP payments will now be calculated as 80% of an employee’s weekly wages or a fixed £118.75—whichever amount is lower.  

Why Are These Changes Happening?  

The government aims to:  

- Ensure all workers can take time off for illness without financial hardship.  

- Prevent infectious diseases from spreading in workplaces.  

- Support businesses by improving employee well-being and productivity.  

How Will This Impact Businesses?  

Employers will now pay SSP sooner, increasing costs by approximately £15 per worker annually. However, improved workplace health and higher productivity are expected to balance out these expenses.  

The government will also support small businesses through initiatives in the "Get Britain Working White Paper", offering strategies to create healthier and more inclusive workplaces.