Newsflash: No increase to statutory rates

minimum wage - purse with penny coinWhat do we already know?

Various statutory rates such as maternity pay, paternity pay, shared parental pay, adoption pay and sick pay usually increase every year in April in line with the consumer price index (CPI). However, there is no statutory requirement to uplift these rates every year.

What’s new?

The Government has proposed that for 2016/17 there will be no annual increase in the above various statutory rates. This is because the CPI fell by 0.1% in the year to September 2015.

This means that the current weekly rates of such statutory payments will remain at their current 2015/16 levels which are as follows:

  • Maternity, paternity, adoption and shared parental pay: £139.58 per week (or 90% of the employee’s average weekly earnings if this figure is less than the statutory rate); and
  • Statutory sick pay (SSP): £88.45 per week.