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Statutory Pay rates

Increasing statutory pay rates

New statutory rates have been published for maternity pay, paternity pay, shared parental pay, adoption pay and sick pay from April 2018 in addition to new National Minimum Wage and National Living Wage rates.

Currently, the weekly rate of statutory maternity pay is £140.98 or 90% of the employee’s average weekly earnings if this figure is less than the statutory rate. This figure will rise to £145.18 from April 2018.

In line with the increase in statutory maternity pay, the rates of statutory paternity pay and statutory shared parental pay will also increase from £140.98 to £145.18 (or 90% of the employee’s average weekly earnings if this figure is less than the statutory rate).

The rate of statutory adoption pay will also increase from £140.98 to £145.18. Therefore with effect from 1 April 2018. Statutory adoption pay is payable at 90% of the employee’s average weekly earnings for the first six weeks and the remainder is paid at the rate of £145.18 or 90% of average weekly earnings if this is less than £145.18.

In addition to the above, statutory sick pay is also due to increase from £89.35 to £92.05 from 6 April 2018.

National Minimum Wage and National Living Wage

Further to this, from April 2018 employers will see new National Minimum Wage and National Living Wage increases. The National Living Wage for workers aged 25 and over will increase by 4.4% from £7.50 to £7.83, the National Minimum Wage rates will also increase as follows:

  • from £7.05 to £7.38 for 21 to 24 year olds
  • from £5.60 to £5.90 for 18 to 20 year olds
  • from £4.05 to £4.20 for 16 and 17 year olds
  • from £3.50 to £3.70 for apprentices.

With these yearly increases taking effect from April, now is the time for businesses to ensure that company policies and payment systems are updated in line with the increase in rates and that budgets are adapted accordingly.