Sick pay is changing, and your payroll needs to keep up

From April 2026, the way you handle sick pay is going to change.

Under the Government’s latest plans, Statutory Sick Pay (SSP) will need to be paid from the very first day an employee is off work, and not just for full-time staff.

Everyone will be entitled to it, no matter how little they earn.

Right now, SSP only starts after three days off and only if someone earns more than £123 a week. That’s about to be scrapped.

What to watch out for when the SSP changes arrive

If you run a business with part-time, seasonal or lower-paid employees, you will likely see your sick pay costs go up.

More people will qualify, and payments will need to start straight away.

It is not just about the money, either. You will need to make sure your systems can handle the changes and that your policies and managers are ready too.

Should you act now?

Nine months might sound like ages, but when you have got to review budgets, update payroll software, adjust employee policies and possibly retrain your team, time disappears fast.

Here is a quick checklist of what to look at:

• Budgeting – Do your current forecasts account for this extra cost?
• Payroll systems – Can your setup handle day-one SSP and track low-earner eligibility?
• Contracts and handbooks – Do they reflect the new rules?
• Manager training – Are your line managers prepared to handle sick leave under the new system?
• Absence planning – Do you understand how this could affect overall staff absence levels?

We can help you get sorted

We help businesses like yours make sure their payroll is accurate, up to date, and ready for change.

If you are not sure how these new sick pay rules will affect your setup, or you just want someone to take it off your plate, we are here to help.

Speak with us to talk through the changes and what they mean for your payroll.