A two-day illness used to sit outside Statutory Sick Pay for many employees. From 6 April 2026, that changed.
HMRC confirmed two major reforms to Statutory Sick Pay: the Lower Earnings Limit was removed, and payment began on the first full day of sickness absence rather than after three waiting days.
Eligible employees became entitled regardless of earnings. Their weekly payment was set at the lower of 80% of average weekly earnings or the 2026/27 flat rate of £123.25.
For hospitality, the important part was not simply a new payroll rule. Short absences are common, working patterns vary and many employees have irregular weekly earnings. A change affecting the first day of sickness therefore reached the rota, payroll and manager conversation at the same time.
What changed on 6 April
Under the new rules:
- eligible lower-paid employees could receive Statutory Sick Pay even if they had previously earned below the threshold
- the three waiting days disappeared for new qualifying absences
- the payment could vary for lower earners because it was capped at 80% of average weekly earnings
- absences spanning 6 April required transitional treatment rather than one blanket calculation
The government also advised employers to review absence policies, confirm that payroll providers were ready and explain the changes to employees.
Why rota managers needed to understand it
Payroll might calculate the payment, but line managers create much of the evidence around it. They receive the call, record the absence, find cover and confirm when the employee returns.
If one manager logs sickness in the rota, another writes it in a notebook and payroll receives a WhatsApp screenshot three days later, the legal change does not create the confusion. It exposes a process that was already too dependent on memory.
The removal of waiting days also made very short absences financially visible in a way they were not before. That did not make genuine sickness a performance problem. It made accurate coding, consistent return-to-work records and prompt payroll handoff more important.
What operators needed to check
- Update sickness and absence policies to remove outdated threshold and waiting-day language.
- Confirm how the payroll system calculates 80% of average weekly earnings for irregular-hours staff.
- Give managers one clear route for recording the first full day of absence and the return date.
- Test an absence that began before 6 April and continued afterwards, because transitional rules applied.
- Reforecast the likely cost of short absences without pressuring unwell employees to work.
The last point matters in food and drink businesses. A policy that quietly encourages presenteeism can create a much larger operational and food-safety problem than the sick-pay cost it avoids.
The practical point: payroll owned the calculation, but the operation owned the information. If absence data arrived late or inconsistently, the new rule made that weakness more expensive.
General information only: Eligibility and calculations depend on individual circumstances. Use current HMRC guidance or professional payroll advice for specific cases.