New SSP Rules for April 2026: What Every Employer and Recruitment Agency Needs to Know

On 6 April 2026, Statutory Sick Pay in the UK is changing more dramatically than at any point in the last 40 years. Three big shifts are happening at once: the three-day waiting period is gone, the lower earnings threshold is gone, and the calculation method is changing.

Every employer and recruitment agency in the country needs to understand these changes. Not because it's interesting, but because if you get them wrong from day one, you'll either underpay workers (legal risk) or overpay them (margin disappearing).

This is a complete guide to the new SSP rules, what they mean in practice, and what you need to do before 6 April 2026.

What is Statutory Sick Pay?

Statutory Sick Pay (SSP) is the legal minimum employers must pay eligible employees who are off sick. From 6 April 2026 it is payable from the first full day of sickness, at the lower of £123.25 a week or 80 per cent of average weekly earnings, for up to 28 weeks in a single period of incapacity. Before that date it started on the fourth day of sickness and was a flat weekly rate.

SSP is paid by the employer, not the government. The employer pays SSP just like normal wages, runs it through PAYE, and reports it to HMRC. Most employers cannot reclaim SSP from HMRC any more (the Percentage Threshold Scheme was abolished in 2014).

That last point is important. SSP is a direct cost to the business. Get it wrong, and the cost is yours.

The three big changes from 6 April 2026

Change 1: The three-day waiting period is abolished

Under the old rules, SSP was only payable from the fourth day of sickness. The first three days (called "waiting days") were unpaid. Workers had to be off for at least four days in a row to qualify.

From 6 April 2026, SSP is payable from day one. Every day of sickness from the first one is a paid SSP day, including weekends and non-working days that fall within the period of sickness.

What this means in practice:

• A worker off sick for two days now gets two days of SSP (previously zero)
• A worker off sick for a week gets seven days of SSP (previously four days)
• The bottom-line cost of short-term sickness rises significantly for employers and agencies

Change 2: The Lower Earnings Limit threshold is abolished

Under the old rules, workers earning less than £125 per week (the Lower Earnings Limit, LEL) were not eligible for SSP at all. This excluded many part-time workers, casual staff, and low-paid agency workers from the SSP system entirely.

From 6 April 2026, the LEL threshold is removed. Every employed worker, regardless of earnings, is eligible for SSP from day one.

What this means in practice:

• Part-time and casual workers who previously got nothing now get SSP
• Recruitment agencies placing low-paid temps must include SSP in cost models
• Employers using ad-hoc or zero-hours contracts need to update payroll systems

Change 3: The 80% AWE calculation

Under the old rules, SSP was a flat weekly rate (£116.75 in 2025-26) for everyone, regardless of normal earnings.

From 6 April 2026, SSP becomes the lower of two amounts:

• The standard weekly SSP rate (set annually by the government), or
• 80% of the worker's average weekly earnings (AWE)

This means lower-paid workers get a lower SSP than the standard rate. Higher-paid workers still get capped at the standard rate.

Worked examples:

• Worker earning £100 per week average. SSP = lower of standard rate or £80. They get £80 per week (80% of AWE).
• Worker earning £200 per week average. SSP = lower of standard rate or £160. If standard rate is £120, they get £120 per week (capped).
• Worker earning £500 per week average. SSP = lower of standard rate or £400. They get £120 per week (capped).

The calculation must be done individually for every absence, every worker. Generic flat-rate payroll calculations no longer work.

What hasn't changed

Some things from the old SSP system remain:

• The 28-week maximum. SSP is still capped at 28 weeks per period of incapacity for work.
• Linked periods. Two or more periods of sickness within 56 days still link together and count towards the same 28-week maximum.
• The Period of Incapacity for Work (PIW) definition. A PIW is still four or more days of incapacity in a row.
• Employer pays directly. SSP is still paid by the employer through PAYE, not by the state.
• Record keeping. Employers must still keep SSP records for at least three years.

What this means for direct employers

If you employ staff directly, you need to do five things before 6 April 2026:

What this means for recruitment agencies

If you're a recruitment agency placing temporary workers, the changes are even bigger because temps go off sick more frequently than permanent staff and you (the agency) are usually the legal employer paying SSP.

You need to do six things before 6 April 2026:

How linked periods work under the new rules

This is the most commonly misunderstood part of SSP, and it's even more important under the new rules. Here's how it works:

Two periods of sickness link together if:

• Each period is itself a Period of Incapacity for Work (4 or more consecutive days), AND
• The gap between them is 56 days or fewer

When two periods link, they count as a single period for the 28-week maximum.

Example 1

• Sickness period A: 5 days off, 6 to 10 May
• Return to work for 30 days
• Sickness period B: 7 days off, 9 to 15 June
• Gap is 30 days (less than 56). The two periods link. SSP entitlement on period B continues from where period A left off, counting toward the same 28-week maximum.

Example 2

• Sickness period A: 5 days off, 6 to 10 May
• Return to work for 70 days
• Sickness period B: 7 days off, 17 to 23 July
• Gap is 70 days (more than 56). The two periods do NOT link. Period B starts a fresh 28-week SSP entitlement.

Why this matters under the new rules

With day-one SSP eligibility, more workers will trigger SSP for shorter absences. With more SSP triggers happening, the 56-day linked period rule applies more frequently. Agencies and employers will need to track linked periods more carefully than ever.

What good documentation looks like

To stay compliant, every absence record needs to capture:

• Worker name and National Insurance number
• First day of sickness
• Last day of sickness
• Number of qualifying days in the period
• Whether the period links to a previous period of incapacity
• The SSP calculation (standard rate vs 80% AWE)
• The amount paid
• The running total against the 28-week maximum

Paper records or basic spreadsheets are not enough. You need a system that calculates linked periods automatically, applies the correct rate, and keeps an audit trail.

What happens if you get it wrong

Two scenarios. Both are bad.

If you underpay SSP: The worker can complain to HMRC, who will investigate and require you to back-pay the missing amount plus interest. They may also fine you for non-compliance. If the complaint is serious, you could face an employment tribunal claim for unlawful deduction from wages.

If you overpay SSP: You can't reclaim the overpayment in most cases. It's a direct hit to your margin. If you do this systematically across multiple workers, the cumulative cost can be significant.

The Fair Work Agency, established under the Employment Rights Act 2025, launched on 7 April 2026, the day after these SSP changes took effect, with SSP enforcement in its remit from the start. It can issue a notice of underpayment for SSP with a penalty of 200 per cent of the sum owed, capped at 20,000 pounds per worker and halved if paid within 14 days. Employers found systematically getting SSP wrong will face enforcement action.

How PRODICTA helps with SSP compliance

PRODICTA includes built-in SSP tracking for both direct employers and recruitment agencies placing temporary workers.

The platform automatically:

• Tracks every absence with start date, end date, and qualifying days
• Calculates SSP using the new April 2026 rules (day-one eligibility, no LEL threshold, 80% AWE rule)
• Identifies linked periods within the 56-day window and adjusts entitlement accordingly
• Tracks the running total against the 28-week maximum
• Generates SSP1 forms when entitlement runs out
• Produces complete SSP records for HMRC compliance and Fair Work Agency audits

If you're hiring permanent staff or placing temps, PRODICTA handles SSP from day one of every assignment so you never overpay or underpay.

You can book a demo at prodicta.co.uk or try the free hiring risk audit to see what SSP exposure is built into your current hiring process.

Your action checklist before 6 April 2026

For direct employers

• Confirm payroll software supports the new SSP rules
• Update sick pay policies and employee handbooks
• Train line managers on day-one eligibility
• Update hiring cost models to reflect higher SSP exposure
• Review absence reporting processes

For recruitment agencies

• Update margin calculations to include day-one SSP
• Renegotiate client rates if margins are tight
• Confirm payroll bureau or software is ready
• Implement linked period tracking
• Update assignment confirmation templates
• Communicate the changes to clients

For both

• Build a documented SSP record-keeping system
• Plan for higher short-term sickness costs
• Make sure someone in the business owns SSP compliance and understands the new rules

Download the full PDF guide

The PDF version includes all the new SSP rules in a single-page reference format, plus worked examples, the linked period flowchart, an action checklist for both employers and agencies, and templates for absence record-keeping.

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Download the full PDF guide

Worked examples, linked period flowchart, and action checklist for employers and agencies.