By Paula Fisher
January 25th 2024
According to a Statement to Parliament by the Secretary of State for Work and Pensions, and a proposal set out in a Department for Work and Pensions policy paper, Statutory Payment rates are set to increase by 6.3% for payments due on or after Sunday 7th April 2024.
Therefore, the rate for statutory maternity, paternity, adoption, shared parental, and parental bereavement pay will increase to £184.03 per week (previously £172.48) and the rate for statutory sick pay will increase to £116.75 per week (previously £109.40).
The lower earnings limit (LEL), below which employees do not qualify for these statutory payment rates, will remain unchanged at £123 per week.
Employers who qualify for Small Employers Relief will continue to be able to recover 100% of the statutory family friendly payments paid to their employees, plus 3% compensation for the additional National Insurance Contributions (NICS). A small employer is an employer who has paid or will be liable to pay total gross Class 1 NICS of £45,000 or less in the tax year. This has remained unchanged since 2011. Employers who do not qualify for Small Employers Relief can recover 92% of the statutory family friendly payments.
The maximum amount of a week’s pay for the purposes of calculating statutory redundancy pay has yet to be announced.
Written by Fiona Haworth
You can contact Fiona on [email protected]
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