ERA reforms in depth: Statutory sick pay

These reforms are some of the most imminent changes set out in the Act – they are expected to come into force in April 2026.

Current position

An employee or worker (where eligible for SSP) who is absent from work due to sickness is not entitled to receive SSP until the fourth qualifying day of their absence. They must also earn above the Lower Earnings Limit (£125 per week from 6 April 2025) in order to be eligible.

What is changing?

SSP entitlement will start on the first qualifying day of absence, rather than the fourth day. This will significantly impact on organisations that experience high levels of short term absences, many of which would not currently qualify for SSP.

In addition, SSP will be available to those who earn below the Lower Earnings Limit. The rate of SSP will also change – individuals will receive a flat rate of SSP (£118.75 per week from 6 April 2025) or 80% of their normal weekly earnings, whichever is lower.

In our view, preparing for these SSP reforms should be a priority for organisations in the short-term – depending on your current sick pay offering, there are a range of permutations to think through and relatively limited time in which to do so.

We have picked out below some considerations for employers:

• Employers who do not offer ‘day one’ company sick pay may see an increase in short term absences as a result of the move to make SSP available from the first day of absence, albeit the government recognises that some employees may be worse off as a result of these changes. Proactive absence management will be one of the best ways to help to mitigate the risk of increased short-term absences. Effective return to work check-ins or meetings with employees returning from sick days will take on increasing importance.
• Employers who offer company sick pay should review their contractual terms and any sick pay policy documentation to see how these dovetail with SSP eligibility rules and to determine whether any changes to terms or policies are required.
• Your payroll and time & attendance processes will need updating to reflect the changes to SSP eligibility rules. Make sure that you liaise with your payroll provider / team to discuss what procedural changes are required ahead of the current April 2026 implementation date.