WFM UK | Payroll UK: Statutory Sick Pay (SSP) New Rules Effective 6th April 2026

Overview

The new tax year often brings updates that can change how employers must manage statutory payments and internal processes. From 6th April 2026, updates to Statutory Sick Pay (SSP) rules set by the UK Government take effect. These rules are already deployed in the system (from 26th February 2026), which will automatically apply them to any absence created with a start date on or after 6th April 2026.

This article explains what is changing, how the 2026 to 2027 tax year differs from the previous year, and what this means for recording and managing sickness absence in the system. It also outlines how the platform handles existing absences, how to manage absences that span the tax year boundary, and key considerations if you are reviewing your Company Sick Pay (CSP) policies alongside the legislative updates.

Our aim is to help you remain compliant, minimise disruption, and ensure sickness records and payments are handled correctly as you move into the new tax year.

Contents

• What is changing from 6th April 2026?
• Key differences compared to previous tax years
• SSP in UK HR & Payroll (People System)
• SSP Transitional Protections and how they apply & Managing Absences that cross the tax year boundary
• Reporting Tools to Assist
• Considerations for updating Company Sick Pay
• Sources

What is Changing from 6th April 2026?

From 6th April 2026, updates to Statutory Sick Pay (SSP) rules set out by the UK Government will change how entitlement is assessed, how payments are calculated, and when SSP becomes payable. 

Below is a summary of the key changes and what they mean in practice.

• SSP Payable from day one of sickness absence
  The previous three waiting days are being removed, meaning eligible employees may receive SSP from their first qualifying day of sickness rather than from day four. This is likely to increase the number of absences that trigger statutory payments, particularly short-term sickness
• Removal of the Lower Earnings Limit (LEL) for eligibility
  Eligibility is expanding, so employees will no longer need to meet the previous minimum earnings threshold to qualify. This brings more employees into scope, including lower-paid and irregular hours workers who may not previously have qualified
• Updated calculation method (80% of Average Weekly Earnings)
  This change is designed to ensure payments are proportionate while maintaining a statutory cap. SSP will be calculated as the lower of:

  • 80% of the employee’s Average Weekly Earnings (AWE), or

  • The statutory weekly SSP rate for the tax year (£123.25)

• Linked Periods of Incapacity for Work (PIW) rules remain relevant
  Periods of sickness separated by 56 days or fewer may still be linked together when determining entitlement and duration. This continues to be important when assessing whether waiting rules (where applicable historically) or entitlement limits apply across multiple absences. This is covered in more detail later in the SSP Protections section of this article

• Maximum entitlement of 28 weeks across linked periods continues to apply
  Employees can still receive SSP for a maximum of 28 weeks in total across linked Periods of Incapacity for Work (PIWs). Where absences are separated by 56 days or fewer, they may link and count towards this overall limit. Employers should continue to monitor cumulative entitlement, particularly where employees have multiple sickness episodes across the year

• Annual SSP rate update
  As with each tax year, the weekly SSP rate will be updated in line with statutory uprating. The 2026 to 2027 Tax Year rate will be £123.25

The system has been updated to reflect the SSP rules effective from 6th April 2026 and will calculate statutory entitlement in line with UK Government requirements. While the platform supports these changes automatically, there are important considerations during the transition into the new tax year, including how existing absences are handled, how new rules apply based on absence start dates, and how statutory protections operate. 

The remaining sections in this article outline what you need to understand and review to ensure sickness absence is managed correctly.

Key Differences Compared to Previous Tax Years

While many core principles of Statutory Sick Pay (SSP) remain familiar, the changes effective from 6th April 2026 introduce important differences compared to the previous tax year. Understanding these differences will help you identify where processes or policies may need adjustment:

Earlier Payment Trigger

• 2025–2026: SSP was generally payable after three waiting days

• 2026–2027: SSP is payable from the first qualifying day

Example:

• Employee A is sick for 2 days.

  • 2025–2026: No SSP paid (under waiting days rule)

  • 2026–2027: Paid for 2 days at statutory rate or 80% of AWE, whichever is lower

Broader Eligibility

• 2025–2026: Only employees earning above the Lower Earnings Limit could qualify

• 2026–2027: All employees, regardless of earnings, may now be eligible

Example:

• Employee B is part-time, earning below the previous threshold, sick for 5 days.

  • 2025–2026: No SSP.

  • 2026–2027: Paid 5 days at SSP rate or 80% AWE (whichever is lower)

Updated Calculation Approach

SSP will now be calculated as the lower of 80% of Average Weekly Earnings (AWE) or the statutory weekly rate.

Example:

• Employee C has a calculated AWE of £300, sick for 1 week:

  • Statutory rate: £123.25 per week

  • 80% of AWE: £240 per week

  • Payment: £123.25 per week (statutory cap applies)

• Employee D has a calculated AWE of £140. Sick for 1 week:

  • Statutory rate: £123.25 per week

  • 80% of AWE: £112 per week

  • Payment: £112 per week (AWE calculation lower than statutory rate)

SSP Payments: 2025–26 vs 2026–27

• Statutory Rate for 2025/2026 is £118.75
• Statutory Rate for 2026/2027 is £123.25
• Qualifying Days per week is 7

Operational Impact for Employers

Compared to the previous tax year, employers may notice:

• SSP triggered more frequently, including short absences

• Earlier statutory payments within sickness periods

• Wider employee eligibility

• Greater importance of accurate absence start dates

• Need to review Company Sick Pay (CSP) policies in light of day-one SSP

SSP in UK HR & Payroll (People System)

The updated SSP rules for the 2026–2027 tax year are already deployed and active for all customers as of 26th February 2026. Any absence created with a start date on or after 6th April 2026 will automatically follow the new rules. Absences starting before 6th April continue to follow the previous year’s rules, even if they span over the start of the new tax year.

How the System Handles SSP

• Automatic application for new absences – The system applies day-one entitlement, eligibility updates, and calculation rules (80% of AWE vs statutory cap) for any absence starting 6th April 2026 or later

• Existing absences remain unchanged – Any absence created with a start date before 6th April 2026 retains the rules that were in effect at the time of creation

• Linked Periods of Incapacity for Work (PIWs) – The system continues to link absences where relevant for calculating maximum entitlement of 28 weeks, respecting the 56-day linking window.

• Cross-tax-year absences – Absences spanning the tax year must be reviewed. The portion starting 6th April 2026 will not automatically recalculate under the new rules. Splitting the absence(s) may be required to ensure correct SSP application. See Transitional Protections below

Employer Considerations

• Review absences that cross the tax year boundary to confirm the new SSP rules are applied correctly

• Ensure payroll and absence administrators understand that new rules only apply to absences with a start date on or after 6th April

SSP Transitional Protections. How they Apply & Managing Absences that Cross the Tax Year Boundary

Even with the updated SSP rules in effect from 6th April 2026, certain protections ensure employees are not disadvantaged due to the transition. These rules are defined by the UK Government.

This section also provides guidance for employers on how to review, manage, and, where necessary, adjust absences to ensure these protections are correctly applied. It highlights which scenarios the system handles automatically and where employer action, such as splitting absences or checking entitlement, is required.

1. Linked Periods of Incapacity for Work (PIWs)

• Absences separated by 56 days or fewer continue to link together for SSP entitlement

• Maximum entitlement of 28 weeks across linked periods still applies

• Linked absences use the first PIW to calculate 80% of Average Weekly Earnings (AWE) where relevant

Employer action (System Handling): These rules have applied previously and continue to be handled automatically by People System. No action is required by the employer for linked periods already in the system.

2. Transitional protections for current SSP recipients

• Employees already receiving SSP before 6th April 2026, whose weekly earnings fall between £125 and £154.05, are protected from a reduction in entitlement

  • Without transitional protection, calculating 80% of Average Weekly Earnings for employees in this range would result in a rate lower than the statutory weekly flat rate. The protection ensures their SSP does not drop below the uprated flat rate of £123.25

• These employees continue to receive the uprated flat rate (£123.25) until their current absence ends, or they return to work

• New absences or linked periods starting after a return to work use the new calculation (lower of 80% AWE or standard weekly rate of SSP)

Employer action (System Handling): The System does not automatically handle these scenarios. Employers must review each employee’s absence and determine whether changes are needed.

• Employees already in receipt of SSP: Absences do not need to be split. SSP at the standard weekly rate will continue to apply

• For absences spanning over the transitional period, employees not yet receiving SSP up to (and including) 5 April 2026 (due to below LEL, waiting days, or other reasons): Absences may need to be split so that the portion starting 6th April 2026 correctly uses the new rules

3. Employees newly eligible from 6th April 2026 (“Below LEL”)

• Employees earning below the previous LEL are entitled to SSP from 6th April 2026

• Their rate is 80% of their AWE, calculated using the relevant period before the start of their first linked absence

• Maximum entitlement of 28 weeks applies

Employer action (System Handling): This only applies to employees not already in receipt of SSP. For Absences spanning over the transitional period, employers must review and potentially split absences for previously ineligible employees, so the portion starting 6th April 2026 uses the new rules. This ensures the system applies the correct SSP rate automatically.

4. Waiting day exceptions

• Waiting days no longer apply for absences starting on or after 6th April 2026

• For absences spanning 6th April 2026, any waiting days served before that date are not counted or payable, but entitlement begins automatically from 6th April 2026

Employer action (System Handling): This only applies to employees not already in receipt of SSP. Employers should review absences spanning 6th April 2026 and split where needed so that any absence starting 6th April 2026 follows the new rules automatically, with waiting days stopping at 5 April 2026. Employees already receiving SSP do not require any action for waiting days.

Reporting Tools to Assist

To support you in managing the transition to the 2026/2027 SSP rules, the platform provides reporting that can help identify employees and absences requiring review or action. Using these reports alongside the guidance in this article will help ensure protections are applied correctly and that any required absence updates are identified early.

Below is guidance on how to use reporting to support each key protection and employer responsibility.

Waiting day removal

Important: Do this check first, as any employee where waiting days are not a concern may still be subject to the two subsequent protections.

Objective: Find absences spanning 6th April where waiting days may need to stop.

Recommended approach:

• Run the Absence Analysis Report in the HR module covering periods before and after 6th April 2026

• Filter Absences with Waiting Days (Column AN), removing any "0", leaving only "1", "2" or "3" waiting days.

• Filter Absences starting (Column F) on or after the 23rd March 2026.

  • Note: This is the earliest date an absence could start and still have waiting days falling on or after 6 April 2026 in a worst-case qualifying day pattern. Reviewing from this date ensures any absences needing action are identified

• For any absence with at least one waiting day falling on or after the 6th April 2026, split the employee's absences spanning over the boundary, ending the original absence on the 5th April 2026, creating a new absence from the 6th April 2026

Transitional protections for current SSP recipients

Objective: Identify employees already receiving SSP before 6th April 2026 who may fall within the protected earnings range.

Recommended approach:

• Run the Absence Analysis Report in the HR Module covering periods before and after 6th April 2026

• Filter for employees currently receiving SSP (Column AO)

• Review employees whose Average Weekly Earnings fall between £125 and £154.05 (Column AR)

• Ensure these employees' absences are not split, crossing over the 5th/6th April boundary. This is so that they retain the "old rules" in respect to the amount of SSP being paid

  • Note: Although waiting days and Lower Earnings Limit rules remain part of the previous legislation, they do not affect these cases because the employee has already met the qualifying criteria and is in receipt of SSP

• Check employees' payroll to ensure SSP is not paid at a different rate than £123.25

Employees newly eligible for SSP (previously below LEL)

Objective: Identify employees who were previously not eligible but may now qualify from 6th April 2026.

Recommended approach:

• Run the Absence Analysis Report in the HR Module covering periods before and after 6th April 2026.

• Use the report that shows absences with no SSP paid (Column AO)

• Then look at employees with average weekly earnings lower than £125.00 (Column AR)

• Review these employees and confirm that they are now entitled to SSP, and if they are, split the employees' absences spanning over the boundary, ending the original absence on the 5th April 2026, creating a new absence from the 6th April 2026

Company Sick Pay (CSP) Considerations

When reviewing your Company Sick Pay (CSP) policies alongside the 2026–27 SSP changes, there are several operational and system-specific considerations for employers:

Aligning CSP with SSP

• Some customers may have aligned CSP to pay when SSP does, with the option to delay by 1, 2, 3, or 4 days (4 days being most common to match previous SSP waiting days)

• While day-one entitlement for SSP is now automatic from 6th April 2026, aligning CSP to this entitlement is optional and must be configured in the system

Cross-Tax-Year Absences and Contract Updates

• Contract updates and CSP configuration changes only take effect for re-saved or new absences. Existing absences that are not re-saved will continue to use the prior CSP configuration

• Caution: If a pre-6th April 2026 absence is re-saved after a contract change, it will automatically adopt the new CSP configuration, potentially changing the entitlement for historic unpaid absences

CSP Overrides

• The system includes a CSP override function within individual employee absence records.

• This allows employers to correct mis-calculated CSP days for absences during this transition, which may not have been correctly updated during configuration changes or re-saves

Employer Action

• Review your CSP rules to determine whether you want to align them with the new SSP entitlement

• Identify absences spanning 5th and 6th April 2026 and decide whether they need to be re-saved to apply the new CSP rules correctly, whilst also considering the SSP Transitional Protections above

• Use the CSP override functionality to correct any discrepancies that arise during configuration updates

• Communicate any policy or configuration changes clearly to payroll teams and affected employees to ensure clarity and compliance

Note: CSP alignment and configuration updates are operational decisions for the employer. The system will follow whatever configuration is set, so careful review and planning are required when implementing changes around the new tax year.

Key Takeaways

Review absences spanning the tax year boundary

• Split absences where necessary so that new SSP rules apply correctly from 6th April 2026

• Ensure waiting days stop at 5 April for employees not already receiving SSP

Check transitional protections

• Employees already receiving SSP and within the protected earnings range continue on the flat rate

• Confirm whether any absences need manual review or adjustment to maintain correct entitlement

Evaluate CSP alignment

• Decide if CSP should be aligned with SSP

• Update contract configuration as required, keeping in mind that changes only take effect for new or re-saved absences

• Re-saving pre-6th April absences will apply new CSP rules. Use caution

Communicate changes

• Ensure payroll teams and affected employees understand any adjustments to SSP or CSP policies

• Document processes to demonstrate compliance and avoid disputes

Sources:

• GOV.UK - Statutory Sick Pay (SSP)
• GOV.UK - New employment rights: Guidance for businesses and workers
  • Statutory Sick Pay Changes (Employer)
• CIPP - DWP has published formal SSP transitional guidance
  • Direct Link to PDF available above
• CIPP - SSP transitional protections guidance