The new Statutory Sick Pay reforms are here: Is your payroll compliant?

The new Statutory Sick Pay (SSP) reforms have finally arrived and they are bringing new challenges for employers and businesses.

We know you are likely to be advising your clients on the legal implications of the Employment Rights Act, but your firm also needs to ensure you are keeping up with your requirements.

You need to make sure you are managing the implications to your payroll processes and that all your bases are covered when it comes to compliance.

What has changed with SSP?

From 6 April 2026, SSP is payable from the first day of sickness absence and the three-day waiting period is removed.

The Lower Earnings Limit has also been abolished and more employees, including part-time and lower-paid workers, will now qualify.

SSP is now calculated at the lower of 80 per cent of average weekly earnings or the flat weekly rate of £123.25.

What are the key SSP dates you need to know?

HMRC has offered some clarity on how employers should manage absences that fall across the old and new rules.

When a sickness has begun on or after 6 April 2026, the new day-one SSP rules apply immediately and the eligibility for any absences before this date will depend on when the sickness started.

If the absence began on or after 22 September 2025, employees may become entitled to SSP from 6 April 2026, even if they were previously ineligible.

However, if the absence began on or before 21 September 2025 and continued without a break to 5 April 2026, the new entitlement will not apply until the employee returns to work and meets the new criteria again.

How can firms keep their payroll compliant?

We know that you will have already got the ball rolling when it comes to complying with the new rules and updating your sickness policies.

Hopefully, you would have also updated your employment contracts and staff handbooks to remove outdated references to waiting days or previous earning thresholds.

The next part is where our support comes into play.

You need to make sure that your payroll systems are capable of handling the new percentage-based SSP calculations and your teams are trained to record these absences accurately and apply SSP consistently.

Any errors that occur in recording or calculating the new SSP rates can put your firm at risk of compliance issues or disputes.

How can we support your new payroll responsibilities?

Our team works closely with law firms to review their payroll setup and check that their systems can handle the new SSP and leave calculations.

If you are worried about the rising costs, we can help model the impact on your firm and support you with the management of your finances.

Let’s work together to stay compliant with every aspect of the new Employment Rights Act reforms.

For further support with your payroll and managing the SPP reforms, contact our team today.