Employment Law Update: Increases to Statutory Sick Pay

This month, Statutory Sick Pay increased as part of the Government’s annual review. 

Among multiple employment law updates, this change may seem minor at first, but it’s important for employers to understand the practical implications, both from a payroll perspective and how they support staff on sick leave. 

What’s changed?

From 6th April 2025, the new weekly rate of Statutory Sick Pay increased to £116.75 (up from £109.40). 

The lower earnings limit to qualify for Statutory Sick Pay remained unchanged at £123 per week. 

These changes apply to all employees who qualify for Statutory Sick Pay, starting from the first day of the new tax year. 

What employers need to do

1. Update payroll systems
   Ensure your payroll provider or software is updated to reflect the new Statutory Sick Pay rate from 6th April onwards. Failing to do so could result in underpayments and non-compliance.
2. Communicate with your teams
   It’s good practice to keep employees informed of changes that affect their entitlement. Consider updating your employee handbook or intranet with the new Statutory Sick Pay rate.
3. Review your absence management process
   Ensuring managers and HR teams are aware of the new rate and continue to handle absences fairly, in line with current legislation.

Quick reminder: Who qualifies for Statutory Sick Pay?

To be eligible for Statutory Sick Pay, an employee must:

• Be classed as an employee and have done some work under their contract. 
• Have been ill for at least four consecutive days, including non-working days. 
• Early at least £123 per week before tax
• Follow your sickness reporting procedures. 

Statutory Sick Pay is paid for up to 28 weeks and must be paid from the fourth qualifying day of sickness absence. 

Additionally, if you are in a sector where sickness absence is frequent or cyclical, factor the increased cost into your planning and financial forecasts for the year ahead. 

While this change is a routine update, it’s a good opportunity for you to check that your absence policies are still fit for purpose and ensure that your business remains compliant with all current statutory obligations.