Small employers’ relief (SER) rate of compensation for statutory sick pay and other benefits increase from 06 April 2026

Small employers’ relief (SER) rate of compensation for statutory sick pay and other benefits increase from 06 April 2026

Employers who qualify for small employers’ relief (SER) will be able to reclaim a higher percentage from HMRC to offset their costs as the rate increases to 9%.

Employers can currently reclaim 92% of employees’ statutory maternity, paternity, adoption, parental bereavement, neonatal care and shared parental pay.

Under the SER rules, small employers who paid less than £45,000 in Class 1 National Insurance can reclaim 100% of these statutory payments, in addition to a further amount which will increase from the current 8.5% to 9% for the 2026-27 tax year.

For eligible businesses, the increased rate represents a modest but meaningful improvement in cashflow support, particularly during periods where statutory payments are more concentrated or prolonged. It also reflects HMRC’s continued efforts to ease the administrative and financial burden on smaller employers as the statutory pay landscape evolves.

April 2026 will see the national minimum wage rate increase by up to 7% depending on the age of workers, while a raft of new day one rights for employees from sick pay to parental leave, unfair dismissal to zero hours contracts, affecting businesses of all sizes, come into effect under the Employment Rights Act 2025.