SSP changes for tax year 2026/2027

For more information on other statutory changes in the new tax year, see Statutory changes for tax year 2026/2027.

TABLE OF CONTENTS

• Changes to statutory sick pay (SSP) and the transition period between tax years
  • What is changing in the act? 
  • How does this affect sickness around 6th April 2026?
  • What action do I need to take if the employee is off sick over 6th April?
  • Not sure whether the employee is currently receiving SSP?

Changes to statutory sick pay (SSP) and the transition period between tax years

What is changing in the act? 

From April 6th 2026, the Employment Rights Act 2025 will:

• Abolish waiting days: employees will be entitled to SSP from day one of their sickness.
• Remove the lower earnings limit: all employees will be entitled to SSP, regardless of how much they earn.
• Change the SSP rate: to the standard weekly SSP rate OR 80% of average weekly earnings (whichever is lower). 
  • The standard SSP rate will increase to £123.25 per week.
  • The calculations used to establish average weekly earnings remain the same.

How does this affect sickness around 6th April 2026?

Any periods of sickness that end before 6th April 2026 will be subject to the previous rules, and any periods of sickness starting on or after April 6th 2026 would be subject to the new rules.

As a result of these changes, if an employee is sick during the transition period (which straddles the 2025/6 and 2026/7 tax years): 

1. The employee could become eligible for SSP for the latter part of their absence.
2. If the change in rules reduces an employee's SSP, it will "lock" the SSP rate to £123.25.

What action do I need to take if the employee is off sick over 6th April?

If the employee is NOT currently receiving SSP (because they are serving waiting days OR their earnings are below the LEL), when you calculate the employee's pay (either from Payroll Calculation screen or from the Payslip Summary screen), Cintra iQ will raise an exception in the exceptions report advising you to split the sickness record. By doing this, new SSP rules will be applied automatically from the 6th April and the employee will receive SSP from that date. 

To split the sickness period:

1. Locate the original sickness event in the calendar. 
2. Delete or edit the original event to end on 5th April 2026.
3. Create a second sickness events that begins on 6th April 2026. 

For more information, see How do I create and amend calendar events?

If the employee IS currently receiving SSP, no action is required. SSP will continue to be paid under the transition rules until the employee returns to work.

Not sure whether the employee is currently receiving SSP?

Check the exceptions report and their SSP record in Cintra iQ.