HMRC confirms sick pay boost for all workers with ‘day one rule’ | UK | News

HM Revenue and Customs (HMRC) has confirmed the sick pay increase for all employees following a change of law in April 2026. Statutory sick pay (SSP) rules were changed on 6 April this year to remove the waiting period for sick pay and remove the minimum earnings limit for receiving sick pay. Under the new rules, workers will now be paid from the first day of sick leave, rather than waiting a few days, and will receive sick pay even if they earn less than £125 a week, as the previous minimum has been removed.

The changes are made as part of the Employment Rights Bill 2025, which received Royal Assent in December last year, and will benefit around 15 million workers, according to the government. As of April 6, SSP is available to all eligible employees, regardless of earnings, and will be paid from the first day of illness instead of the fourth day as before.

Previous rules allowed workers to receive SSP for up to 28 weeks, and this was paid for all days off they would normally have worked, except for the first three days. This meant that workers eligible for sick pay could only be paid from the fourth working day of illness.

However, as of April 6, this three-day waiting period before payment was canceled so that workers could receive SSP from the first day of illness instead of the fourth day.

The pay rate also increased in April, with the weekly rate rising from £118.75 per week to £123.25. Workers can go up to this amount if they are too sick to work for up to 28 weeks.

Workers will only be paid sick pay for the first three working days if they are on sick leave and have received SSP within the last eight weeks, and this must include a three-day waiting period before payment is made.

Additionally, new rules introduced in April also mean that workers paid less than £123.25 per week will receive guaranteed sick pay equivalent to 80% of their average weekly wage or the SSP rate, whichever is lowest.

Confirming the SSP changes in guidance published this year, HMRC said: “From 6 April 2026, the Employment Rights Act 2025 introduces two major changes to Statutory Sick Pay (S.S.P.).

“Removal of the Lower Earnings Limit: All eligible employees, S.S.P. regardless of income. S.S.P. 80% of normal weekly earnings or the upgraded weekly flat rate of £123.25, whichever is lower, will be paid. Removing the Waiting Period: S.S.P. Payment will be made from the first full day of sickness absence, not from the fourth day.

“These changes S.S.P. It will be more accessible and remove barriers for low-paid workers and will apply across the UK, including Northern Ireland.

“Relevant legislation will apply to when sick leave occurs. Absences starting before 6 April 2026 will follow the current system in determining eligibility and payment. Absences starting on or after 6 April 2026 will use the new rules unless otherwise stated in the legislation.”

If you qualify for SSP, you can now receive £123.25 per week of SSP or 80% of your normal weekly earnings, whichever is lower, and this will be paid for up to 28 weeks.

Workers will be paid SSP for all the days they are on sick leave that they would normally work, and employers will use your average weekly earnings over an eight-week period to calculate how much you will receive.

To qualify for SSP, you must be classified as an employee, have done some work for your employer, and have been sick for at least one full work day. You should usually tell your employer that you cannot work before the deadline they set, or within seven days if they haven’t set it yet.

The Department for Work and Pensions (DWP) said the new “fairer pay” strikes the right balance between providing financial security for workers who fall ill and saving costs for businesses, while maintaining people’s incentives to return to work.

Commenting ahead of last year’s changes, Work and Pensions Secretary Liz Kendall MP said: “For far too long, sick workers have had to choose between staying at home and losing a day’s pay or enlisting at their own risk just to make ends meet.

“No one should have to choose between their health and making a living, which is why we’re making this landmark change.

“The new rate is good for workers and fair for businesses, as part of our plan to increase rights and Bring Back Jobs as we deliver on our Plan for Change.”