Statutory Rate Changes April 2018
The Government has published statutory rate changes for maternity, paternity, shared parental pay, adoption pay and sick pay effective from April 2018.
What do you need to know?
Maternity, Paternity, Shared Parental and Adoption Pay will all be increasing from £140.98 to £145.18 (or 90% of the employee's average weekly earning if this figure is less than the statutory rate). Statutory Sick Pay ("SSP")will be increasing from £89.35 to £92.05.
Quick Guide to SSP:
SSP is paid by the employer for up to 28 weeks;
To qualify for SSP, employees need to be off work for 4 or more days in a row (including non-working days);
The first 3 days of absence will be unpaid unless the employee has been paid SSP within the last 8 weeks, in which case they will be eligible for SSP immediately; and
SSP is paid for normal working days only.
National Living and Minimum Wage
From 1 April 2018 the National Living Wage (NLW) and National Minimum Wage (NMW) will increase.
The National Minimum Wage applies to workers under 25 and the National Living Wage applies to workers over 25.
From 1 April 2018:
Workers aged 25 and over: £7.83 an hour (National Living Wage) Workers aged 21 and over: £7.38 an hour Development rate for workers aged 18-20: £5.90 an hour Young workers rate for workers aged 16-17: £4.20 an hour Apprentice rate: £3.70 an hour