Home Business & Industry UK Sick Pay Reforms to Abolish Waiting Days but Weekly Rate Remains Low

UK Sick Pay Reforms to Abolish Waiting Days but Weekly Rate Remains Low

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The UK’s statutory sick pay system will undergo a major reform in April 2026, eliminating the three unpaid “waiting days” that currently delay payments for ill workers. However, the weekly payment amount will remain at £116.75, raising concerns about whether the reforms will sufficiently ease financial pressure on employees during short-term illnesses.

Abolition of waiting days and expanded eligibility

Under the current rules, eligible UK employees must wait three unpaid days before receiving statutory sick pay, a policy criticised for worsening financial strain, especially for low-income households. From April 2026, this waiting period will be removed, allowing payments from the first day of sickness absence.

The reforms also scrap the lower earnings limit, currently set at £125 per week, expanding eligibility to an estimated 1.3 million additional low-paid workers.

Weekly rate remains unchanged

Despite these changes, the statutory weekly rate will remain at £116.75, up only slightly from £109.40 the previous year. Officials state that this decision considers small business concerns over administrative costs.

The reforms aim to reduce the spread of infectious diseases by encouraging workers to stay home when unwell and to provide immediate financial support. Critics argue, however, that the unchanged rate fails to keep up with inflation and living costs.

UK among the lowest sick pay providers in Europe

A new report by payroll and HR software provider Moorepay highlights the UK’s low position in global sick pay rankings. The Global Sick Leave Report 2025: Ultimate Guide analysed statutory sick pay legislation across 113 countries, ranking provisions for the first week of leave in absolute terms and adjusted for purchasing power using “international dollars,” a World Bank metric.

Key findings for UK workers:

  • Current first-week sick pay: £116.75, equivalent to Intl$172.14
  • Global rank: 95th, on par with Mexico and Cambodia
  • European rank: lowest in the region
  • Global average first-week payment: Intl$366.67

The report also notes UK employees take an average of 4.4 sick days per year, the second lowest in Europe and roughly three times below the global average of 13 days. This may reflect the deterrent effect of inadequate pay, leading to presenteeism where ill workers attend work despite risks to themselves and colleagues.

European sick pay comparison

Highest first-week payments (international dollars)

  • Luxembourg: $1,518.76
  • Norway: $1,446.78
  • Germany: $991.85

Lowest first-week payments

  • UK: $172.14
  • Portugal: $132.82
  • Armenia: $152.37

In absolute terms, Luxembourg leads Europe with an average first-week payment of £1,107.29 (€1,279.81), far above the UK’s offering.

Globally, Qatar tops the purchasing power list at Intl$1,644.69 (3,620.96 QAR). The US and South Korea provide no statutory sick pay, while Tunisia begins payments after the first five days.

Expert commentary and implications

Experts say these disparities affect workforce well-being and productivity. A Chartered Institute of Personnel and Development spokesperson notes, “Better sick pay supports recovery and reduces long-term absences.” UK sickness levels rose to 9.4 days per employee in 2025, up from 5.8 in 2024, driven by mental health issues, long-term conditions, and economic pressures.

Moorepay’s report concludes that the UK reforms mark progress but do little to close the international gap. Calls are growing for a rate review to bring UK sick pay in line with European peers. Employers are preparing to implement day-one entitlements, which may add around £15 per employee annually.

Enhancing statutory sick pay could strengthen financial security and support healthier workplaces, potentially reversing the trend of minimal absences driven by necessity rather than choice.