With the wave of changes that are incoming with the Employment Rights Act 2025 we wanted to take a moment to put the spotlight on SSP (statutory sick pay), and what the changes will look like for you as an employer.
Below you will find a summary of the proposed changes, how to prepare, the detail behind the proposed changes that are expected to come into force from 6th April 2026 across England and Wales, and a comparison reference grid.
Summary of proposed changes
SSP will be:
available to lower paid employees, regardless of their weekly earnings
payable from the first full day of sickness absence
calculated as a percentage of weekly earnings or based on a flat weekly rate.
How to prepare
Preparation is key and there is no time like the present with the key focus points being to:
review and update your sick pay/absence management policies
audit payroll systems
manage absences (including supportive wellbeing approach)
update contracts to reflect the changes
train managers on SSP entitlement and absence management
communicate changes to all staff.
The detail
PIW (Period of incapacity to work)
This will be a period of 1 day.
Linked periods of incapacity for work
Absences of 8 weeks/ 56 days or less will continue to be treated as 1 continuous period of absence, as per existing legislation.
However, there will be no requirement for each period to be 4 or more days – it will just be 1 day.
AWE (Average weekly earnings)
For lower earners, SSP will be payable at 80% of their AWEs.
AWEs will be calculated over a relevant 8-week period, rounded to the nearest whole penny and on earnings that are subject to National Insurance.
For linked periods of absence, the AWE calculation for the first absence will be used for any subsequent calculations i.e. it is not re-calculated prior to each period of linked absence.
For example, if an employee’s pay increased between 2 separate periods of linked absences, the rate of SSP would remain the same. It would only be re-calculated, and so consider the pay increase, on the next unlinked absence.
Transitional protection period
The transitional protection period aims to protect employees from being worse off because of SSP changes. This period will last for a maximum of 28 weeks.
The transitional period will last until the employee:
returns to work
exhausts their SSP entitlement
employment contract ends
receives maternity pay, whichever is sooner.
What this means around the 6th April 2026 date of change:
Employees earning below the Lower Earnings Limit (see 'Comparison Table' below) who are off sick on or before 6 April 2026 | SSP will become payable from 6 April |
Employees who are serving their waiting days on 6 April 2026 | SSP will become payable from 6 April |
Employees who are:
| Will continue to receive SSP at the flat rate for the remainder of their absence. This would not apply to any future absences, even if they are within a linked period. |
Contractual sick pay and contractual changes
Contractual sick pay is often aligned with SSP and could mean that contractual sick pay becomes payable from day 1.
Contracts may need updating to reflect day 1 SSP entitlement.
You may wish to amend your company sick pay policies, subject to usual consultation considerations. Please contact the Helpline on 0370 840 0234 if you are considering this and before you begin consultation with your staff.
How we can help
We are just a phone call away to advise, guide and support you through all the changes being made by the Employment Rights Act 2025.
In addition, we are offering an Employment Rights Act 2025 consultancy package to review and update your current employment documents to be compliant with the changes taking effect in April 2026, which includes SSP. We will also provide you with updated documentation later in the year in readiness for further changes in October 2026 and December 2027.
Please contact the Helpline or email us at [email protected] for more information including costs.
Comparison table
| Under the current system Proposals under the ERA 2025 | Proposals under the ERA 2025 |
Employee | To be eligible for SSP, you must be classed as an employee and have done some work for your employer. | Applies to eligible employees if they earn anything. |
LEL (Lower Earnings Limit) | To be eligible for SSP average weekly earnings must be at or above the current LEL of £125 per week. | The requirement to earn at or above the LEL will be removed. |
Waiting days | There is a 3-day waiting period before SSP is payable. | Waiting days will be removed. |
Rates of pay | SSP is paid at a flat rate of £118.75 per week. | New rate of SSP:
The weekly flat rate will continue to be reviewed annually. |
Enforcement | HMRC Statutory Payment Disputes Team. | New Fair Work Agency.
Employers will be required to pay sums due within 28 days. Notices of underpayment will also include a penalty, which will reduce by 50% if the sums due are paid within 14 days.
FWA will be able to bring proceedings in place of a worker and give legal advice or provide representation and recover enforcement costs from employers. It will be a criminal offence to knowingly or recklessly produce false documents/ information or to obstruct officers. |
More from NFU Employment Service:
Not yet an NFU Employment Service member? Join today and take advantage of a host of guidance to support you navigating the complex world of employment law.
You'll also receive access to a wide range of member benefits – with discounts ranging from cars to health insurance.
For more information, call us on 0370 840 0234 or email us at [email protected]