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Compliance & law

Day-one sick pay: what the Employment Rights Act 2025 means for absence

From 6 April 2026, statutory sick pay is payable from the first day of absence. What is changing, why it matters, and what employers should do now.

A retail and hospitality employee at work
Key takeaways
  • From 6 April 2026, statutory sick pay (SSP) is payable from the first day of sickness absence, removing the three waiting days.
  • The lower earnings limit is removed, so lower-paid employees who were previously ineligible will now qualify.
  • The change increases the cost of short-term and intermittent absence, making prevention and early intervention more valuable.
  • Employers should update payroll, policies and manager guidance, and review how they manage absence.

From 6 April 2026, one of the most significant changes to sick pay in years takes effect. Statutory sick pay (SSP) becomes payable from the first day of absence, and the lower earnings limit that previously excluded many lower-paid workers is removed. For employers, this is not simply a payroll adjustment; it changes the economics of short-term absence and strengthens the case for managing it well.

What is changing

Two changes matter most. First, the three "waiting days" go: SSP will be payable from day one of sickness absence, rather than from the fourth qualifying day. Second, the lower earnings limit is removed, so employees who earn below the previous threshold, and who were not entitled to SSP at all, will now qualify. Together these extend both when SSP is paid and who receives it.

Day 1
SSP payable from the first day of absence, from 6 April 2026
Employment Rights Act 2025

Day-one sick pay does not just change a payroll calculation; it changes the economics of short-term absence.

Why it matters

The financial effect falls mainly on short-term and intermittent absence, which is exactly the kind that previously attracted no SSP because it fell within the waiting days. Employers with high levels of short-term absence, or large numbers of lower-paid staff, will feel the change most. It removes a longstanding, if blunt, financial disincentive to short absences, and it makes the value of understanding and reducing absence clearer than before.

Good practice

This is a good moment to look at your absence data rather than only your payroll. If short-term, intermittent absence is a significant part of your total, the change will increase its cost, and the most effective response is usually better early support and management, not tighter rules.

What employers should do now

Several practical steps follow. Payroll systems and processes need to be updated so that SSP is calculated correctly from day one and for newly eligible employees. Absence and sick pay policies should be reviewed and aligned with the new rules, and any references to waiting days corrected. Line managers should be briefed, so that return-to-work conversations and absence recording reflect the change. And it is worth revisiting any contractual sick pay scheme to check how it now interacts with SSP.

Medwyn tip

Treat the change as a prompt to strengthen absence management as a whole, not just to reprogramme payroll. Employers who intervene early, support managers and keep policies current consistently achieve lower absence, which is the most effective way to offset the additional cost.

The wider context

Day-one sick pay is one part of a broader set of reforms under the Employment Rights Act 2025, which also introduces day-one family leave rights and other changes being phased in through 2026 and beyond. The common thread is higher baseline expectations of employers, and a greater premium on current policies, capable managers and good health support.

Where occupational health fits

Occupational health is the most effective lever most employers have on absence, and its value rises as the cost of absence rises. Used early, a management referral shortens absence and supports return to work, and good absence management reduces both the length and the recurrence of cases. Managing absence well has always made sense; from April 2026, it also makes clearer financial sense.

This article is general guidance for employers and is not individual medical or legal advice. If you are unsure how it applies to your organisation, contact our team.

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