The following legislative changes apply from 6 April 2026.
The Lower Earnings Limit (LEL) has been removed; this was previously £125.
This means that employees earning below this amount can now qualify for SSP from 6th April 2026, benefiting part-time and lower-paid workers.
SSP starts from day one
Employees no longer need to wait three days or be off sick for four days before receiving SSP. Waiting days have been removed and payment starts from day one, even if the employee is only off sick for a single day.
A new lower rate has been introduced
Employees will receive the lower of 80% of their average weekly earnings or the standard rate for the tax year. Average weekly earnings are calculated from the start of the first linked period of sickness, so where a current absence links back to an earlier one, it is the earlier period that determines the average weekly earnings figure.
Transitional rules for sickness spanning the tax year
Where an employee is already receiving SSP in 2025-26, and their absence continues unbroken into 2026-27, the following transitional rules apply.
Employees on continuous sick leave who received no SSP in 2025-26 due to earning below the Lower Earnings Limit will start receiving SSP from 6 April 2026, except where they have been off sick for 28 weeks or more.
For employees whose continuous (unbroken) sickness started on or before 21 September 2025, a period of entitlement will not arise from 6th April.
This is to protect employers from a sudden liability for SSP payments to employees who have been absent for an extended period and have a lower likelihood of returning to work in the near term.
However, if the absence is linked rather than continuous – i.e. the employee returned to work at any point after 22 September 2025 and was then off sick again within 56 days – they will be eligible for SSP from 6 April 2026 and standard SSP rules will apply, including the 28-week maximum entitlement.
Employees who earn between £125.00 and £154.05 currently receive SSP at the standard rate of £118.75 (2025-26). Under the new rules, 80% of their average weekly earnings would be lower than the new standard rate of £123.25, meaning they would ordinarily attract the lower rate from April 2026. However, where such an employee's sickness is continuous into the new tax year, they will continue to receive the standard rate for the duration of that absence. Once they return to work, any subsequent period of sickness will use the new lower rate calculation.
Employees on continuous sick leave, who had not used up all three waiting days in 2025-26, will start receiving SSP from 6 April 2026, as waiting days no longer apply.
Where a PIW was previously disallowed for any reason other than low earnings, it remains disallowed.
What does this mean for you?
Continue to process your employee's sickness absence as usual, and Paycircle will calculate the correct SSP rate, based on the new legislation.
An update was processed on the 14th February 2026 to recalculate any existing absences relating to the new tax year, to ensure the correct rate is applied.