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No Increase to Statutory Payments

01/03/2016

No Increase to Statutory Payments

Normally at this time of year, we are advising of the changes that the government are going to make to the statutory payments from April. Well this year is slightly different, there are none!

Yes you have read that correctly, the government has proposed no increase to the various statutory rates this year, including maternity pay, paternity pay, adoption pay and sick pay.

Although there is no statutory requirement to uplift these rates every year, they normally increase each April in line with the consumer price index (CPI). As the CPI fell by 0.1% in the year to September 2015, the government decided there will be no increase to the rates in 2016/17.

Therefore the weekly rate of statutory maternity pay and other parental payments is £139.58 or 90% of the employee's average weekly earnings if this figure is less than the statutory rate. The rate of statutory sick pay is also frozen at the current weekly rate of £88.45. To be entitled to these statutory payments, the employee's average earnings must be equal to or more than the lower earnings limit. This amount is also staying at £112.

So whilst it will be a blow to many employees that these rates are not being increased, it's good news for employers.

Fiona Haworth. You can contact Fiona on fiona@practical-hr.co.uk


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