Statutory payment rates confirmed for new tax year

The Social Security Benefits Up-rating Order 2018 has now been published in draft form, and points out a number of statutory payment rates that employers are going to need to consider. Most importantly, it states that:

  • The standard weekly rates of statutory adoption pay (SAP), statutory maternity pay (SMP), statutory paternity pay (SPP) and statutory shared parental pay (ShPP) are set to rise from £140.98 to £145.18 from 1 April 2018 (or 90% of the employee’s average weekly earnings if that is less than the statutory rate)
  • From 6 April 2018, the weekly rate of statutory sick pay (SSP) is set to rise from £89.35 to £92.05

As well as this, the Social Security (Contributions) (Rates, Limits and Thresholds Amendments and National Insurance Funds Payments) Regulations 2018 has also been published in draft form. It confirms that, from 6 April 2018, the lower earnings limit (LEL) will increase from £113 to £116 per week. Employees below the LEL do not qualify for SMP, SAP, SPP, ShPP and SSP.

For plain-English, expert advice on any of the above you can contact Alison here.

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