Government reforms (1): Statutory rates increase

Statutory rates increase

What do we already know?

Annually in April the annual increase in statutory pay rates come into effect which are normally increase in line with the consumer price index (CPI).

What’s new?

The following proposed increases to statutory payments will be effective in April 2019:

The weekly rate of:

  • Statutory Sick Pay (SSP) will rise from £92.05 to £94.25 per week;
  • Statutory Maternity Pay (SMP) and Maternity Allowance will rise from £145.18 to £148.68 per week; and
  • Statutory Paternity Pay (SPP), Statutory Shared Parental Pay (ShPP) and Statutory Adoption Pay (SAP) will rise from £145.18 to £148.68 per week.

To be entitled to these statutory payments, the employee’s average earnings must be equal to or more than the lower earnings limit.  The lower earnings limit is increasing from £116 to £118 in April 2019.