Increases in Statutory Payment Rates 2024/2025
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Increases in Statutory Payment Rates 2024/2025
The Government has announced increases in certain payments made to employees to take effect from April 2024. As a reminder, the National Living Wage is now available to people aged 21 and above.
Please note that with effect from 1 April 2024 the National Living Wage and the National Minimum Wage will be as follows:
| Age | Minimum rate |
|---|---|
| 21 years and over (National Living Wage) | £11.44 per hour |
| 18 – 20 years inclusive | £8.60 per hour |
| Aged under 18 years (16-17 years)(but above compulsory school leaving age) | £6.40 per hour |
| Apprentices aged under 19 years (or aged 19 years and over who are in the first year of an apprenticeship) | £6.40 per hour |
In addition, the Government has published the statutory rates for maternity pay, paternity pay, shared parental pay, adoption pay and parental bereavement pay. These new rates come into force on 7 April 2024.
| Benefit | New rate |
|---|---|
| Statutory Maternity Pay (SMP) – (payable for up to 33 weeks, after the first six weeks at 90% of average weekly earnings) | £184.03 per week (or 90% of the employee’s average weekly earnings if this figure is less than the statutory rate) |
| Statutory Paternity Pay (SPP) (payable for up to two weeks) | £184.03 per week (or 90% of the employee’s average weekly earnings if this figure is less than the statutory rate) |
| Statutory Shared Parental Pay (ShPP) – (payable for up to 37 weeks) | £184.03 per week (or 90% of the employee’s average weekly earnings if this figure is less than the statutory rate) |
| Statutory Adoption Pay (SAP) – (payable for up to 33 weeks, after the first six weeks at 90% of average weekly earnings) | £184.03 per week (or 90% of the employee’s average weekly earnings if this figure is less than the statutory rate) |
| Statutory Parental Bereavement Pay (SPBP) – (payable for up to two weeks) | £184.03 per week (or 90% of the employee’s average weekly earnings if this figure is less than the statutory rate) |
Statutory Sick Pay (SSP)
The Government will increase Statutory Sick Pay (SSP) to £116.75 per week with effect from 6 April 2024.
Earnings Threshold 2024/25
The Government has confirmed there is no change to the earnings threshold, as follows:
- From 7 April 2024, in order to qualify for maternity pay, paternity pay, shared parental pay, adoption pay and parental bereavement pay, employees must earn on average £123.00 per week (alongside other eligibility requirements).
- From 7 April 2024, in order to quality for Statutory Sick Pay, employees must earn on average £123.00 a week (alongside other eligibility requirements).
You should ensure that you are paying your employees correctly and that the correct rate of pay is being applied to all employees within the different age bands. It is a criminal offence for employers to pay workers less than applicable minimum wage.
If you have any queries regarding increased statutory payment rates, please do not hesitate to get in touch.
The GatekeeperHR Team
If you need HR support to stay on top of the latest changes in statutory payments, contact Lynn Marlow, a member of our GatekeeperHR team, on e. LynnMarlow@rixandkay.co.uk or t. 01825 744 448, or visit the GatekeeperHR website for more information on how we can help you.
