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Statutory Sick Pay Changes: What Employers Need to Know

Statutory sick pay form

 

Changes to Statutory Sick Pay (SSP) are coming into force in April 2026, introducing new requirements for employers across the UK.

While the reforms aim to provide greater support for employees who are unable to work due to illness, they will also increase administrative and cost considerations for businesses.

Understanding what is changing and preparing your payroll processes in advance will help ensure your business remains compliant and avoids costly payroll errors.

What Is Statutory Sick Pay (SSP)?

Statutory Sick Pay (SSP) is the minimum amount employers must pay eligible employees who are off work due to illness.

It is a statutory entitlement governed by UK legislation and administered through employer payroll systems, with oversight from HM Revenue & Customs (HMRC).

Employers are responsible for calculating and paying SSP through their payroll, ensuring employees receive the correct payments when they are unable to work due to sickness.

What Is Changing from April?

From April, new rules around Statutory Sick Pay will come into effect that may affect how employers manage sickness absence and payroll administration.

Key changes are expected to include:

  • Removal or reduction of waiting days before SSP becomes payable
  • Expansion of SSP eligibility
  • Changes to qualifying criteria
  • Increased administrative responsibilities for employers

These changes may result in:

  • Higher payroll costs
  • Increased record-keeping and reporting requirements
  • Greater compliance risk if payroll processes are not updated

Why the SSP Changes Matter for Employers

Even relatively small legislative changes can create significant payroll challenges if systems and processes are not updated correctly.

If your payroll procedures are not aligned with the new SSP rules, your business could face:

  • Incorrect SSP payments
  • Employee disputes or grievances
  • Compliance risks and potential penalties
  • Additional pressure on internal HR or payroll teams

Businesses managing payroll internally should review their systems and procedures now to ensure they are prepared for the changes.

How RMT Can Help

At RMT, our payroll specialists are helping businesses prepare for the upcoming Statutory Sick Pay changes.

We can support you by:

  • Reviewing your current payroll processes
  • Ensuring payroll systems and software are compliant
  • Advising on the financial impact of the changes
  • Managing accurate SSP calculations
  • Providing fully outsourced payroll services

Whether you already work with us or handle payroll in-house, our team can help ensure your business is ready.

Preparing for the April Changes

With the new rules coming into force in April, now is the time for employers to review their payroll processes and ensure they are fully compliant.

If you would like to discuss how the upcoming Statutory Sick Pay changes may affect your business, contact our payroll team today.

Preparing early will help ensure a smooth transition and reduce compliance risks.