Typically from January each year, most Employers start planning for the Statutory increase in key wage rates.
This year however, the Covid-19 crisis hit the UK economy with such severity that most Employers might be forgiven for not really paying any attention to these Statutory Rate increases.
Although initially there was some speculation that the Government might delay the Statutory rate increases, this proved not to be the case and all the Statutory increases went ahead as planned. Employers should therefore be aware that they are paying staff the correct rates. 5 of the most common Rates in use by Employers are as follows:
1) National Living Wage – paid to Employees aged 25 and over, rose from £8.21/hour to £8.72/hour
2) National Minimum Wage - Rate for Employees aged between 21-24 years rose from £7.70/hour to £8.20/hour. Rates for Employees aged under 21 and Apprentices are as follows:
Age 18-20 : £6.45 (was £6.15)
Under 18 : £4.55 (was £4.35)
Apprentice : £4.15 (was £3.90)
3) Statutory Sick Pay (SSP) -rises from £94.25/week to £95.85/week this year. Those eligible are entitled to receive SSP for up to 28 weeks
4) Statutory Maternity Pay (SMP) -Those eligible are entitled to receive SMP for up to 39 weeks. The first 6 weeks: 90% of the Average Weekly Earnings (AWE) before tax. For the next 33 weeks, the lower of 90% of the Average Weekly Earnings (AWE) or £151.20/week. This increases from £148.68/week paid last year
5) Statutory Paternity Pay (SPP) -Those eligible are entitled to receive the lower of 90% of the Average Weekly Earnings (AWE) before tax or £151.20/week. This increases from £148.68/week paid last year
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