Employment Rights Act 2025 – What have I missed?
22 June 2026 · By Oliver Tasker
Statutory Sick Pay from Day 1: What Businesses Need to Do Now
At Impact Employment Law Limited, we are frequently asked what the latest employment law changes mean in practice for businesses. One development that has gone under the radar is the move to make Statutory Sick Pay (SSP) payable from day one of absence and the removal of the lower earnings limit meaning all employees are now eligible. For many employers, this represents a meaningful shift in both cost and compliance obligations.
In this Impact Insights, we explain what the change means and how your organisation should respond.
What Is Changing with Statutory Sick Pay?
Previously, employees only became eligible for SSP from the fourth consecutive day of sickness absence, with the first three days classified as “waiting days.”
Under the new legislation, SSP is now payable from the first day of absence, provided employees meet the qualifying criteria.
This change is part of the government’s wider push to strengthen employee rights and financial security.
Removal of the Lower Earnings Limit for SSP
A significant update under the Employment Rights Act 2025 is the removal of the Lower Earnings Limit (LEL) for Statutory Sick Pay.
Previously, employees had to earn above a minimum threshold to qualify for SSP. This excluded many part-time, lower-paid, and flexible workers. This has now been removed meaning all eligible employees are now entitled to SSP from day one, regardless of how much they earn.
Why This Matters for Employers
Wider eligibility: More employees now qualify for SSP
Increased costs: Businesses must cover sickness absence across a larger workforce
Payroll updates required: Systems must reflect universal entitlement
Greater compliance risk: Failure to apply SSP correctly could lead to disputes
This change significantly expands employer responsibilities and makes it essential to review payroll and absence processes.
How Statutory Sick Pay Is Calculated
SSP is paid at a fixed weekly rate set by the government, rather than being linked to full salary (unless enhanced sick pay applies).
Current SSP Rate
£123.25 per week (or 80% of your average weekly earnings, whichever is lower) (from April 2026)
Payable for up to 28 weeks per sickness absence
Daily Rate Calculation
SSP is calculated based on the number of qualifying working days:
Formula:
Weekly SSP ÷ number of working days = daily SSP rate
Example
For an employee working 5 days per week:
£123.25 ÷ 5 = £24.65 per day
Under the new rules, this is paid from the first day of absence
This applies to full-time, part-time, and irregular workers, with payments made on a pro-rata basis.
Why Day-One SSP Matters for Employers
Increased Cost Pressures
With SSP payable from day one, employers are now responsible for covering more sick days, particularly impacting businesses with frequent short-term absence.
Potential Rise in Short-Term Absence
Removing the waiting period may lead to an increase in one- or two-day absences, as employees no longer face unpaid days at the start of sickness.
Administrative and Policy Impact
Existing contracts of employment, staff handbooks, and absence policies referencing waiting days must now be updated to remain compliant.
What Employers Should Do Now
To prepare for the Employment Rights Act 2025 SSP changes, businesses should take proactive steps:
Update Sickness Absence Policies: Review and revise all documentation to reflect SSP payable from day one. Ensure wording is clear and consistent across policies and contracts.
Train Line Managers: Managers should understand the new rules and how to handle sickness absence conversations fairly and consistently.
Monitor Absence Trends: Track short-term absence patterns more closely. Early identification of trends allows for timely intervention and support including potential disciplinary action.
Review Company Sick Pay Scheme: If you offer enhanced or contractual sick pay, assess how these schemes interact with day-one SSP and whether adjustments are needed.
Strengthen Employee Wellbeing Initiatives: Reducing absence is key to managing costs. Consider investing in mental health support, occupational health services, and wellbeing programmes.
Ensuring your internal policies align with these changes will also help protect your business from legal risk and employee disputes. Have you reviewed your contract of employment and handbook recently?
Final Thoughts from Impact Employment Law Limited
The introduction of Statutory Sick Pay from day one may seem like a small legislative tweak, but it carries real implications for businesses and many haven’t realised yet.
By reviewing your policies, training your managers, and strengthening absence management practices now, you can ensure your organisation is both compliant and resilient.
Need support with updating your policies or keeping up to date with employment law changes?
Contact Impact Employment Law Limited today for expert, practical advice tailored to your business.
Call Oliver directly: 01522 776270
Impact Employment Law Limited Advice. Protection. Impact.