Navigating Statutory Sick Pay (SSP) in the 2025/2026 Tax Year: A Guide for UK Employers
Managing employee sickness is a key responsibility for any business owner. With annual increases to statutory payments and significant reforms on the horizon, staying compliant with Statutory Sick Pay (SSP) rules has never been more important.
As your local payroll experts in Wandsworth, London, we’ve broken down the essential SSP details for the 2025/2026 tax year, and given you a crucial heads-up on the major changes coming in 2026.
1. The Statutory Sick Pay Rate for 2025/2026
For the tax year beginning April 6, 2025, the weekly rate for Statutory Sick Pay has been increased.
| Statutory Sick Pay Rate | Applicable from April 6, 2025 |
| SSP Weekly Rate | £118.75 per week |
| Duration of Payment | Payable for up to 28 weeks |
SSP is paid for the days an employee would normally work (known as ‘Qualifying Days’). It is treated as earnings, meaning you must deduct Income Tax and National Insurance Contributions as usual.
2. Current SSP Eligibility Rules (2025/2026)
An employee must meet four main conditions to qualify for SSP under the rules that apply for the current 2025/2026 tax year:
| Eligibility Condition | Detail |
| 1. Period of Sickness | Must be sick for 4 or more consecutive days (a Period of Incapacity for Work, or PIW). |
| 2. Waiting Days | SSP is not paid for the first 3 Qualifying Days. These are known as ‘Waiting Days’. Payment starts from the fourth Qualifying Day. |
| 3. Employee Status | Must be classed as an employee and have started work. |
| 4. Minimum Earnings | The employee’s Average Weekly Earnings (AWE) must be at least the Lower Earnings Limit (LEL) for National Insurance. The LEL for 2025/2026 is £125 per week. |
The calculation of daily SSP rates can be complex as it depends on the number of qualifying days in a week. Your payroll system must be correctly configured to ensure accurate payments.
3. Crucial Forecast: Major SSP Changes from April 2026
Employers must begin planning now for significant, mandatory reforms to Statutory Sick Pay that are scheduled to take effect from April 2026 under the government’s legislative roadmap.
These changes will fundamentally alter how SSP is administered:
| Current Rule (2025/2026) | New Rule (April 2026) | Impact on Employers |
| 3 Waiting Days (SSP starts day 4) | Waiting Days Abolished (SSP starts day 1) | Increased Cost: Employers will pay SSP for short-term absences (1-3 days) that were previously unpaid. |
| £125 LEL to qualify | Lower Earnings Limit Removed (Universal Eligibility) | Increased Eligibility: More part-time, irregular, and low-paid workers will qualify for SSP. |
| Flat Rate of £118.75/week | Calculation Change: Paid at the lower of the flat rate or 80% of AWE. | Increased Cost/Admin: Need to ensure systems can calculate 80% AWE for low earners. |
Important Note on Cost: Unlike Statutory Maternity/Paternity Pay, SSP cannot be recovered from HMRC. The full cost of SSP is borne by the employer. The 2026 reforms will, therefore, result in an overall increase in payroll costs for most businesses.
4. Employer Action Plan for Compliance
To ensure your business remains compliant and avoids disputes, you should:
-
Verify the 2025/2026 Rate: Ensure your payroll software is updated to the new £118.75 weekly rate and the £125 LEL for all absences commencing from April 6, 2025.
-
Review Policies: Ensure your employee handbook and sickness absence policy accurately reflects the 3-day waiting period and the earnings threshold that applies now.
-
Plan for 2026: Start budgeting for increased payroll expenditure from April 2026. Review and begin the process of updating your employee contracts and internal HR policies to reflect the day-one payment and universal eligibility rules well in advance.
Let Zaypay Handle the Complexity
Accurate SSP processing, particularly with the complexity of Qualifying Days and the forthcoming 2026 reforms, requires meticulous attention to detail. Mistakes can lead to penalties and staff disputes.
At Zaypay Payroll Bureau Services, we provide peace of mind by managing all aspects of your payroll. We ensure every employee receives the correct statutory payment, your business remains fully compliant with HMRC rules—both current and future—and you can focus on growing your business in London.
To learn how we can simplify your payroll and compliance, contact us today.
