Blog
What is the new sick pay law
Published 11 March 2026
Stress can make the symptoms of any illness worse, but a new change in the law should help ease the financial worry about pay when you’re off sick.
Next month sees the biggest overhaul of Statutory Sick Pay (SSP) in decades in a move that will affect almost every employer and employee in the country.
The changes to be introduced on 6 April are intended to make sick pay fairer, simpler and much more accessible.
The new legislation is part of the Employment Rights Act 2025 (ERA), described as “the biggest upgrade to workers’ rights in a generation”[1 cited 11.3.26].
Currently the standard rate for SSP is £118.75 per week [2 cited 11.3.26 ] . It is the statutory minimum paid by employers for up to 28 weeks if you are too ill to work, earning at least £125 per week and if you meet the qualifying conditions.
If you are fortunate enough to receive contractual company sick pay when you are unwell and unable to work, don’t assume the changes have no relevance to you.
If you have a long‑term illness, company sick pay usually ends after a set period and you will then have to rely on the new and improved SSP.
Research published by CIPD late last year found that absence levels have risen as more working adults face long-term health conditions [3 cited 11.3.26 ] . The top three causes of long-term absence (four weeks or more) were: mental ill health, such as depression or anxiety (41%) , musculoskeletal injuries, such as back pain (31%) and other long-term health conditions, such as cancer (30%)
As with any change in the law, what the SSP change means, and especially what it means for you personally, can feel unclear and confusing.
So here is a simple, easy‑to‑follow guide to help you make sense of the new rules.
What is changing?
- Removal of the Lower Earnings Limit to make SSP available to all employees regardless of their weekly earnings. The changes introduced by the Act mean that the rate of SSP will be 80 per cent of an employee’s earnings or the current flat rate whichever is lower.
- Removing waiting days from the SSP system and amending the Period of Incapacity for Work, so that eligible employees are entitled to SSP from their
first full day of sickness absence, rather than the fourth
- Inclusion of Statutory Sick Pay (including the current enforcement and disputes process) within a newly established single enforcement body - the Fair Work Agency.
So what exactly does this change?
The rules in place at present mean that you will only qualify for SSP if you earn at least the Lower Earnings Limit (LEL) of £125 per week (in 2025–26), and you will only get paid SSP from your fourth day of sickness absence.
Government figures show in the first quarter of the financial year 2022/23 there were up to 1.3 million employees in the UK who earned below the LEL [4 cited 11.3.26 ] . It did not include workers who are self-employed and not eligible for SSP.
As a result of the current rules, many employees felt pressured and as if they had no real choice but to work even when they were ill.
The law change removes the earnings threshold, so even the lowest‑paid workers will now qualify for SSP. For people earning below the old threshold, SSP will be calculated as 80 per cent of their normal weekly earnings, or the standard flat rate, whichever is lower. The legislation also removes the three unpaid waiting days, meaning SSP will be paid from the first day of sickness.
This will mean that more employees will be protected, staff who are sick and cannot work will have better financial security, and fewer people will feel pressured to attend work when they are not fit to do so.
Those who will benefit, and who will now be eligible for SSP for the first time, include:
- Part‑time workers.
- Zero‑hours workers.
- Seasonal workers.
- Low‑income employees.
What it means for employees
You get paid sooner
You will no longer miss out on pay for the first three days of sickness. If you’re unwell and unable to work on Monday, your SSP will start from Monday.
More employees are protected
Those on low incomes who were previously paid below the old threshold are now included. This is especially important and will make a real difference to individuals such as students working part‑time, parents working reduced hours, people with multiple small jobs and workers on variable or unpredictable hours.
Your pay reflects your earnings
As SSP will now be linked to 80 per cent of your average weekly earnings (up to the flat rate), your sick pay could be much closer to your normal income.
You’re less likely to feel pressured to work while ill
Research has shown that many employees felt forced to work while ill, which is known as presentism. The Understanding Sickness Presenteeism: Causes, Risks and Solutions research by Professor Gail Kinman and Dr Christine Grant published in May 2025 found that financial concerns play a key role in sickness presenteeism, especially in jobs with limited sick pay entitlement, insecure employment, or where there is high competition for jobs [ 5 cited 11.3.26 ]
What it means for employers
Increased costs
The fact that SSP will be paid from day one of sickness absence and that more employees will now qualify for it, will inevitably increase costs for employers.
Policies must be updated
Sickness absence policies will need to be updated before 6 April 2026 and employers will need to:
- Remove references to waiting days.
- Remove references to the LEL.
- Update payroll systems.
- Train managers on the new rules.
Accurate record‑keeping is essential
The fact SSP will be paid from day one, does mean employers will need to track sickness absence accurately from the first day.
More of a focus on early intervention
The government hopes employers will invest more in:
- Occupational health
- Wellbeing support
- Early return‑to‑work planning
This isn’t just good practice because it reduces long‑term absence costs.
Five key things you need to know about the new sick pay law
- Do I need a fit note from day one to ensure I get paid?
No, you do not. There is no change to the fit note rules [6 cited 11.3.26 ] . You will still only need one after seven days of sickness.
- Does this apply to self‑employed people?
No it does not. SSP is a payment made by an employer to any of its employees when they are unwell and unable to attend work, as self-employed individuals (sole traders, partners) do not have an employer, they will not be entitled to receive it.
- Will employers get reimbursed for SSP?
There is currently no plan to reintroduce SSP reimbursement schemes.
- Does this replace company sick pay?
No. If your employer offers enhanced sick pay, you will still be entitled to it for the period stated, or for as long as the employer chooses to provide it if the scheme is discretionary.
- What if I have more than one job?
You may qualify for SSP from each employer separately.
Finally
The SSP change is significant because it marks a welcome shift in how employers will support staff when they are unwell, unable to work and often at their most vulnerable.
It heralds a future with more inclusive employment rights, stronger protection for employees on low incomes, a healthier and more productive workforce and a more modern and compassionate approach to managing absence and wellbeing.
The UK has for a long time been viewed as having one of the least generous sick pay systems in Europe, and while these changes will, obviously, not resolve every issue, they represent a meaningful, long‑overdue and welcome step forward.
The new sick pay law is a genuinely important development that will affect millions of workers and every employer across the country, making sick pay fairer, more accessible and better suited to modern working patterns.
