Statutory pay rates are reviewed by the government on an annual basis and new rates are published each April.
The government have now published the statutory pay rates for 2018/2019 and as a result, it is important to ensure that your company make relevant amendments to employees pay, in line with the new amounts.
Please be aware that HM Revenue and Customs can take employers to court for not paying the statutory amounts.
The new rates for 2018/2019 are as follows…
From 1st April 2018: -
Statutory sick pay has increased to £92.05 per week.
The following National Minimum Wage rates now apply:
Aged 25 and above (national living wage rate)
Aged 21 to 24 inclusive
Aged 18 to 20 inclusive
Aged under 18 (but above compulsory school leaving age)
From 6th April 2018: -
The statutory rates for maternity pay, paternity pay, shared parental pay and adoption pay is £145.18 per week OR 90% of the employee’s average weekly earnings (whichever is lower).
The Lower Earnings Limit is £116.00 per week. An employer can only make National Insurance deductions on earnings above this limit.
Statutory redundancy payments have now increased to £508.00 per week.
It is also important to note that although these rates take affect from the start of April, workers are only entitled to the new rate for pay reference periods that start on or after 1st/6th April.
For example, if a monthly paid worker has a pay reference period that ends on 10th April, they would only be entitled to receive the new, increased rates from the first day of the new pay reference period, starting on 11th April.