Overview
- The government has changed Statutory Sick Pay so it is payable from the first full day of sickness and no longer blocked by an earnings threshold or a three-day waiting rule.
- SSP will be calculated at 80% of an employee's average weekly earnings (AWE) or the uprated flat rate of £123.25 per week, whichever is lower, which effectively caps payouts for higher earners.
- The reform broadens eligibility so more people can claim SSP, which the government says will make many low-paid workers better off.
- Legal advisers and employers say nearly all businesses must update contracts, staff handbooks and payroll systems and train managers to budget for and administer the new entitlement.
- Beyond immediate pay changes, the shift could raise short-term employer costs and change absence handling at work while forming a key part of the government's wider employment-rights agenda.