UK Statutory Sick Pay SSP Day 1 Reform Guide 2026
Complete 2026 guide to the UK's Statutory Sick Pay reforms, including Day 1 payment, removal of the Lower Earnings Limit, the £123.25 weekly cap, 80% average weekly earnings calculation, qualifying days, linked sickness periods, fit notes, SSP1 and transitional rules.
1. 2026 Statutory Sick Pay Reform: What Changed
From 6 April 2026, major changes to Statutory Sick Pay (SSP) came into force under the Employment Rights Act 2025. The previous three qualifying-day waiting period was removed and the Lower Earnings Limit was removed for SSP eligibility. For sickness absences beginning on or after 6 April 2026, eligible employees can receive SSP from the first full working day of sickness, regardless of their earnings level. The new payment formula is the lower of 80% of average weekly earnings or the statutory weekly SSP rate of £123.25 for the 2026/27 tax year. The rules apply across Great Britain and Northern Ireland, although the underlying legislation differs between the two jurisdictions.
2. 2026 SSP Rate and Payment Formula
For the 2026/27 tax year, running from 6 April 2026 to 5 April 2027, the statutory weekly SSP rate is £123.25 or 80% of the employee's average weekly earnings, whichever is lower. This means the removal of the Lower Earnings Limit does not mean every employee automatically receives £123.25 per week. The employee's actual SSP can be lower where 80% of their average weekly earnings is below £123.25.
| Average Weekly Earnings | 80% of AWE | 2026/27 SSP Weekly Amount |
|---|---|---|
| £100 | £80 | £80 |
| £145 | £116 | £116 |
| £150 | £120 | £120 |
| £185 | £148 | £123.25 |
| £250 | £200 | £123.25 |
3. How Average Weekly Earnings Are Calculated
SSP calculations normally use average weekly earnings from the relevant period before the employee's first full day of sickness. For a normal employee with sufficient earnings history, the relevant period generally covers at least 8 weeks before the end of the relevant period. Earnings used for the calculation are earnings on which Class 1 National Insurance contributions are due, or would be due if the employee's earnings were high enough. For weekly-paid employees, earnings paid during the relevant period are normally added together and divided by the number of weeks represented. For monthly-paid employees, the calculation converts the relevant monthly earnings into an average weekly amount. Employees who have been employed for less than 8 weeks can still qualify. Special calculation rules apply to new employees who do not yet have a normal 8-week earnings history.
4. Qualifying Days and Day-by-Day SSP Calculations
SSP is normally paid only for qualifying days, meaning days on which the employee normally works under their employment arrangement. A Period of Incapacity for Work (PIW) can include weekends, bank holidays and other non-working days, but SSP is paid for qualifying days within that period. For a full week of sickness where the employee has the same qualifying days each week, the weekly SSP amount applies. Where only part of a week is payable, the weekly SSP amount is divided by the number of qualifying days in that week and multiplied by the number of qualifying days for which the employee is sick.
| Example | AWE | Applicable Weekly SSP | Qualifying Days | SSP for 3 Sick Qualifying Days |
|---|---|---|---|---|
| Higher AWE | £185 | £123.25 | 5 | £73.95 |
| Lower AWE | £145 | £116 | 5 | £69.60 |
5. Who Qualifies for SSP in 2026
To qualify for SSP, an employee must generally have an employment contract, have done some work under that contract, have been sick for at least one full working day, and comply with the employer's sickness notification and evidence requirements. The removal of the Lower Earnings Limit means that earnings below the former threshold no longer prevent an otherwise eligible employee from qualifying for SSP. Agency workers may also qualify, and there are special rules for some categories of employment such as directors and educational workers.
6. When SSP Is Not Payable
Removal of the Lower Earnings Limit did not remove every SSP eligibility condition. SSP is not payable in circumstances where statutory exclusion rules apply. Examples include an employee who has already received the maximum 28 weeks of SSP, certain periods involving Statutory Maternity Pay or Maternity Allowance, specified pregnancy-related sickness situations, certain periods involving custody or industrial action, certain employees working outside the EU where the employer is not liable for National Insurance contributions, and certain cases involving recent Employment and Support Allowance.
7. First Full Day of Sickness: Important Day 1 Rule
From 6 April 2026, SSP is payable from the first full working day of sickness for eligible employees. The previous three qualifying-day waiting period no longer applies to sickness absences governed by the new rules. A day cannot normally be treated as a sick day for SSP purposes if the employee worked for a minute or more before leaving work sick that day. There are also specific rules for shifts that begin on one day and end on another.
8. Notice, Self-Certification and Fit Notes
Employees should notify their employer that they are sick within the employer's stated notification deadline, or within 7 days if the employer has not set a deadline. An employer can normally require medical evidence only when the employee has been off sick for more than 7 days in a row, including non-working days. For shorter periods, the employee can normally self-certify their sickness. A fit note can be issued by a GP or hospital doctor, registered nurse, occupational therapist, pharmacist or physiotherapist. A fit note can be printed or digital.
9. Linked Periods of Sickness and the 3-Year Rule
Separate sickness periods can be linked for SSP purposes when the gap between Periods of Incapacity for Work is 8 weeks (56 days) or less. Linked periods are treated together for important SSP eligibility and entitlement calculations. The eligibility conditions are generally applied by reference to the first day of the first linked period rather than restarting the assessment with each later absence. An employee is no longer eligible for SSP where a continuous series of linked sickness periods lasts more than 3 years. If the link is broken, a later unlinked period can potentially create a fresh maximum entitlement subject to the statutory rules.
| Situation | SSP Treatment |
|---|---|
| Gap of 56 days or less | Periods can link and are treated as one series |
| Gap of at least 57 days | The link is generally broken |
| Linked series exceeds 3 years | SSP eligibility ends under the linked-period rule |
| Maximum SSP paid | Normally up to 28 weeks within the relevant linked series |
10. SSP Maximum Duration and What Happens After 28 Weeks
SSP can normally be paid for a maximum of 28 weeks. The 28-week limit applies across an unlinked Period of Incapacity for Work or a series of linked periods, subject to the detailed statutory rules. When SSP ends because the maximum entitlement has been reached, the employee may be able to claim another benefit such as Employment and Support Allowance or Universal Credit, depending on their circumstances.
11. SSP1 Form and Employer Responsibilities
Employers must provide form SSP1 when an employee is not entitled to SSP or when SSP is ending, so the employee can use it when applying for relevant benefits. If the employee does not qualify for SSP, the employer must normally provide SSP1 within 7 days of the first day of sickness. If SSP is expected to end before the sickness does, SSP1 should normally be provided on or before the beginning of the employee's 23rd week. If SSP ends unexpectedly while the employee is still sick, SSP1 should normally be provided within 7 days of the SSP ending.
| Situation | SSP1 Timing |
|---|---|
| Employee is not entitled to SSP | Normally within 7 days of the first day off sick |
| SSP expected to end before sickness | On or before the beginning of the 23rd week |
| SSP ends unexpectedly while employee remains sick | Within 7 days of SSP ending |
12. Transitional Rules for Sickness Absences Around 6 April 2026
The date on which the sickness absence started is critical when applying the 2026 SSP reforms. Absences that started on or after 6 April 2026 generally follow the new Day 1 and removed-Lower-Earnings-Limit rules. Absences that started before 6 April 2026 generally remain subject to the previous system, but specific transitional provisions can give some employees access to SSP from 6 April 2026. For example, an employee whose pre-6 April 2026 absence was previously excluded because earnings were below the old Lower Earnings Limit may become entitled to SSP from 6 April 2026 in specified circumstances. Other special transitional rules apply to employees who were serving waiting days or had sickness absences restarting around 4 or 5 April 2026. Employers should use the official transitional guidance rather than applying the Day 1 rule automatically to every sickness absence that crosses 6 April 2026.
13. SSP Payroll, Tax and National Insurance Treatment
SSP is paid through payroll in the same way as wages. Employers deduct Income Tax and National Insurance where applicable and pay SSP on the employee's normal payday or according to the employer's normal payroll arrangements. The removal of the Lower Earnings Limit for SSP eligibility should not be confused with the separate Income Tax or National Insurance thresholds. SSP eligibility and payroll deductions are governed by different rules.
14. Special Employment Situations
SSP has special rules for some employment arrangements, including agency workers, company directors and certain educational workers. Employees with more than one job can potentially qualify for SSP from more than one employer where the statutory conditions are satisfied. A person can also be fit to perform one job while being incapable of performing another job, depending on the nature of the work and their illness.
15. Practical 2026 SSP Calculation Examples
Example 1: An employee has average weekly earnings of £185. Eighty percent of £185 is £148. Because £123.25 is lower, the SSP weekly amount is £123.25. If the employee has 5 qualifying days and is sick for 3 of them, the daily rate is £123.25 ÷ 5 = £24.65, producing £73.95 SSP for those 3 qualifying days. Example 2: An employee has average weekly earnings of £145. Eighty percent of £145 is £116. Because £116 is below £123.25, the SSP weekly amount is £116. With 5 qualifying days and 3 sick qualifying days, the amount is £69.60. Example 3: An employee has average weekly earnings of £100. Eighty percent is £80, so the weekly SSP amount is £80 rather than £123.25.
| AWE | 80% AWE | SSP Weekly Rate | 5-Day Daily Rate | 3 Sick Days |
|---|---|---|---|---|
| £185 | £148 | £123.25 | £24.65 | £73.95 |
| £145 | £116 | £116 | £23.20 | £69.60 |
| £100 | £80 | £80 | £16.00 | £48.00 |
16. Employer 2026 SSP Compliance Checklist
Employers should update payroll systems and sickness policies for the 6 April 2026 reforms and ensure that employees are assessed under the correct rules based on the start date of their sickness absence.
Key Takeaways
- SSP is payable from Day 1 of sickness absence, eliminating 3 unpaid waiting days.
- The Lower Earnings Limit is removed, extending sick pay rights to part-time workers.
- Self-certification covers the first 7 calendar days of illness.
- Employers must pay at least statutory weekly rates or contractual sick pay if higher.
- Maximum statutory sick pay duration remains 28 weeks.
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