Statutory Sick Pay Reforms: Navigating the New 2026 Legislation

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A New Era for Statutory Sick Pay

From 6 April 2026, the Statutory Sick Pay (SSP) system has undergone its most substantial reform in over forty years. These changes simplify the process for employers, though they necessitate immediate updates to internal payroll procedures to ensure compliance.

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What Has Changed for Employers

The most notable shift is the removal of the three unpaid waiting days that previously applied to sickness absences. Employees are now eligible for SSP from the very first day of their illness. Furthermore, the Lower Earnings Limit, which previously acted as an eligibility barrier, has been abolished. This means that a wider range of staff, including those who are part-time or low-paid, are now entitled to SSP.

To ensure your systems are configured correctly for these new rules, reach out to our team for assistance. For hands-on support with SSP calculation and compliance, book a free consultation with our Exeter payroll bureau at sterlingpayrollsolutions.co.uk/book.

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Managing Statutory Payment Rates

With the weekly SSP rate now set at £123.25, or 80% of average weekly earnings if lower, it is vital to audit your payroll software settings. Using outdated rates or waiting-day structures will inevitably lead to underpayments, which can trigger compliance investigations. Regularly reviewing your payroll setup is a proactive way to safeguard your business against avoidable errors.

Beyond statutory updates, our dedicated experts keep a close eye on all legislative developments that impact your payroll operations. By partnering with Sterling Payroll Solutions, you benefit from our commitment to accuracy and our proactive approach to regulatory changes.

Our team is ready to help you navigate these reforms with confidence, ensuring your staff are paid correctly and on time, every time. You can rely on us to manage the finer details of these legislative updates, leaving you free to dedicate your time to growing your business in Devon and beyond.