The Government has announced key updates aiming to provide more support to employees from the very first day of illness. Here’s what you need to know about the upcoming changes.
Currently employees are not entitled to Statutory Sick Pay (SSP) until day four of absence, the Government have now confirmed that they are removing this three-day waiting period and employees will be entitled to receive SSP from day one.
In addition to this, they are removing the Lower Earnings Limit (LEL) to qualify for SSP which means that all employees will be entitled to receive it, and those low earners will qualify for 80% of their average weekly earnings as SSP when off sick.
If SSP is paid in full by the employer, they are not able to reclaim this from HMRC like other statutory payments.
Example:
If you have an employee that has earnings above the LEL (Lower Earnings Limit) and takes one full week off sick in 2025/26, assuming they meet all other eligibility criteria, the liability for the employer based on the current legislation vs new legislation would be as follows:
Old rules: £47.50
New rules: £118.75
Increase: £71.25 or 250% increase
The rules will mean 1.3 million people on low wages who go off sick will either receive 80% of their average weekly earnings, or the rate of statutory sick pay (SSP) which will be £118.75 per week from 6 April, whichever is lowest.
There has not been a date confirmed for this change to take place, however they usually happen on 1st April or 1st October, so it’s believed that this is unlikely to come in to effect prior to autumn 2025.
Keep an eye out on our website and socials for confirmation of the implementation date, along with confirmation of LELs.
If you have any questions around this please get in touch.
Give us a call on 01872 267 267, email us contact@whyfield.co.uk, or message us on WhatsApp 0777 49 39 111
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