Government reforms (2):  Increase in statutory rates

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 are expected to be effective in April 2021:

• the weekly rate of maternity (SMP), paternity (SPP), shared parental pay (SSPP), adoption (SAP) are expected to increase from £151.20 to £151.97 per week.
• It is expected that SSP will increase from £95.85 to £96.35 per week.

Lower earnings limit

The amount of the weekly lower earnings limit that applies to National Insurance contributions (below which employees are not entitled to SMP, SPP, SAP, SSPP and SSP) is currently £120.  The new 2021-2022 rate has not yet been confirmed.