EOR & Compliance Digest, April 11: UK SSP Overhaul, India Labour Codes, and EU Pay Transparency Countdown

Experience AI in HR

Table of Contents

UK SSP Overhaul From Day One - Asanify AI News

Five days into April and the global employment law changes are already stacking up. The UK just flipped its sick pay system on its head, 1.3 million low-earning workers woke up to day-one SSP rights they never had. India’s four consolidated Labour Codes are now fully operational, restructuring how every employer in the country calculates wages and benefits. And the EU Pay Transparency Directive deadline is 57 days away, with multiple member states admitting they won’t make it. If you manage payroll or compliance across borders, this is the week to audit your systems.

UK Statutory Sick Pay Overhaul: Global Employment Law Changes Hit Payroll Systems

From April 6, 2026, the UK’s Statutory Sick Pay (SSP) rules changed fundamentally. The three-day waiting period is gone. SSP now pays from day one of sickness absence, not day four. And the lower earnings limit that excluded workers earning below £123 per week has been scrapped entirely. (Source: UK Government)

The numbers matter here. According to the UK government, approximately 1.3 million workers who were previously excluded from SSP because of low earnings are now eligible. The new rate is £123.25 per week, or 80% of average weekly earnings, whichever is lower. (Source: Baker McKenzie)

If you employ anyone in the UK, even one person through an EOR, your payroll provider needs to have updated its SSP calculation logic already. The old system calculated SSP starting from the fourth qualifying day. The new system starts from day one. That’s not a minor config change, it’s a different calculation entirely. Check your UK employment law obligations and confirm your payroll software reflects the new rates.

Two more day-one rights kicked in on the same date. Statutory paternity leave and unpaid parental leave are now available from the first day of employment, no qualifying period required. Previously, employees needed 26 weeks of continuous service for paternity leave. That requirement is gone.

And the financial exposure for getting redundancies wrong just doubled. The maximum protective award for failing to comply with collective redundancy consultation rules jumped from 90 days’ pay to 180 days’ pay per affected employee. For a company making 30 people redundant at £25,000 average salary, that’s a potential liability increase from roughly £185,000 to £370,000. (Source: UK Government)

Action item: Verify your UK payroll provider has updated SSP calculations by now. If they haven’t, escalate immediately. Review your redundancy consultation procedures against the new 180-day cap. Update your UK labour law compliance documentation.

India’s Four Labour Codes: Employment Law Changes Restructure Take-Home Pay

India’s consolidated Labour Codes, which merged 29 separate laws into four unified codes, hit full operational compliance on April 1, 2026. The biggest immediate impact is the 50% wage rule. Basic pay must now constitute at least half of an employee’s total cost-to-company (CTC). (Source: Finance Outlook India)

This isn’t a suggestion. It’s law. And it changes the math on every Indian payroll. If your employees in India had a basic pay component of 30-40% of CTC (common in the old structure), their provident fund and gratuity contributions just went up by 5-15%. Take-home pay drops even though total employer cost rises. Expect questions from your team.

Three other changes hit at once. Full and final settlement of wages must now happen within 48 hours of separation, not the 30-45 days many companies took. Every employer must issue formal appointment letters to all workers. And for the first time, gig and platform workers qualify for social security coverage including health insurance, maternity benefits, and old-age protection. (Source: Loop Health)

If you hire in India through an EOR or directly, review your salary structures against the new 50% basic pay threshold now. Run the numbers on your India payroll compliance to see the actual CTC impact. The statutory compliance rules for Indian payroll have fundamentally shifted.

EU Pay Transparency Directive: 57 Days to the Deadline, and Countries Are Already Slipping

The EU Pay Transparency Directive must be transposed into national law by June 7, 2026. The European Commission confirmed in December 2025 that there would be no extension. But the Netherlands has already acknowledged its legislation won’t take effect until January 2027 at the earliest. Denmark is also expected to miss the deadline. (Source: Ogletree Deakins)

The core obligations are clear. From June 7, employers in compliant EU member states must provide job applicants with initial pay range information before interviews. Employees can request pay data for comparable roles. And contractual clauses that prevent workers from discussing their pay become unenforceable. (Source: Ravio)

For companies hiring across the EU, the global employment law changes here create a patchwork problem. Germany, France, and Ireland are moving toward compliance. The Netherlands and Denmark are not. You’ll need country-by-country tracking of which requirements have actually been enacted locally. If you have employees in Germany, start preparing pay band documentation now.

Singapore Raises Local Qualifying Salary, Foreign Worker Quotas at Risk

From July 1, 2026, Singapore’s Local Qualifying Salary (LQS) increases from S$1,600 to S$1,800 per month. The S Pass minimum qualifying salary also rises from S$3,300 to S$3,600, with financial services roles going from S$3,800 to S$4,000. (Source: KMerleone)

Here’s why this matters more than a simple salary bump. The LQS determines whether your local employees count toward your Dependency Ratio Ceiling (DRC), the quota that limits how many foreign workers you can hire. If any of your Singaporean employees earn between S$1,600 and S$1,799, they’ll stop counting toward your quota on July 1. That could push you over your foreign worker limit overnight. (Source: ExcellenceSG)

Review your Singapore payroll obligations and run a headcount analysis before Q3. Identify any local staff in the gap range and decide whether to increase their salaries to maintain your quota entitlement.

Quick Hits

  • New Zealand introduces two-tier employment conditions for open work visas from April 20. Category 1 allows any work including self-employment. Category 2 restricts to employer-based work only. Neither category allows employing others. (Source: Immigration New Zealand)
  • United States is accepting comments through April 24 on a proposed rule that would block new work permit applications for asylum seekers. If finalized, USCIS estimates it could take up to 173 years before applications reopen. (Source: Mondaq)

Action Items: Global Employment Law Changes You Need to Address

If you employ anyone in the UK: Confirm your payroll system calculates SSP from day one of absence, not day four. Verify the new £123.25 weekly rate (or 80% of earnings) is applied. Update your leave policies to reflect day-one paternity and parental leave rights. Review collective redundancy procedures against the new 180-day protective award maximum.

If you hire in India: Audit salary structures to ensure basic pay is at least 50% of CTC. Update your full and final settlement process to comply with the 48-hour deadline. Confirm all workers have formal appointment letters on file. Check whether any of your gig or platform workers now qualify for social security coverage.

If you have employees in the EU: Start building pay band documentation for all roles, beginning with countries likely to meet the June 7 deadline (Germany, France, Ireland). Remove any pay secrecy clauses from employment contracts.

If you hire in Singapore: Run a salary analysis for local employees earning between S$1,600 and S$1,799 before July 1. Budget for either salary increases or reduced foreign worker quota entitlements.

Tracking global employment law changes across multiple jurisdictions is the hard part. Asanify’s Global Employer of Record platform handles multi-country payroll, compliance, and statutory updates so you can focus on building your team instead of auditing tax codes.

FAQ

What changed about UK Statutory Sick Pay in April 2026?

From April 6, 2026, SSP is payable from day one of sickness absence instead of day four. The lower earnings limit has been removed, making all employees eligible regardless of income. The new weekly rate is £123.25 or 80% of average weekly earnings, whichever is lower.

How does India’s 50% basic pay rule affect employer costs?

India’s Labour Codes require basic pay to be at least 50% of total CTC. Since provident fund and gratuity are calculated on basic pay, employers with previously lower basic pay ratios will see statutory contribution costs increase by 5-15%. Take-home pay for employees decreases proportionally.

When does the EU Pay Transparency Directive take effect?

The transposition deadline is June 7, 2026. However, not all member states will meet it. The Netherlands and Denmark have already indicated delays. Employers should prepare for a country-by-country rollout rather than a single uniform date.

Will Singapore’s LQS increase affect my foreign worker quota?

Yes. From July 1, 2026, the Local Qualifying Salary rises from S$1,600 to S$1,800. Local employees earning below the new threshold will no longer count toward your Dependency Ratio Ceiling, which could reduce the number of foreign workers you’re allowed to employ.

What is an Employer of Record and when should I use one?

An EOR is a third-party service that acts as the legal employer for your international hires, managing payroll, taxes, benefits, and compliance in each country. Use an EOR when you have fewer than 10 employees in a country and don’t want to set up a local legal entity.

Not to be considered as tax, legal, financial or HR advice. Regulations change over time so please consult a lawyer, accountant  or Labour Law  expert for specific guidance.

Simplify HR Management & Payroll Globally

Hassle-free HR and Payroll solution for your Employess Globally

Your 1-stop solution for end to end HR Management