The statutory rates increase for 2021 are effective from Sunday 4th April 2021 and increase from £151.20 per week to £151.97 per week for the following:
- Statutory Maternity Pay (SMP)
- Statutory Paternity Pay (SPP)
- Statutory Adoption Pay (SAP)
- Statutory Shared Parental Pay (ShPP)
- Statutory Parental Bereavement Pay (SPBP)
Statutory Maternity and Adoption Pay
The first 6 weeks are paid at 90% of the employee’s average weekly earnings calculated in the relevant period. Earnings are those where Class 1 National Insurance contributions are due.
The relevant period is 8 weeks before the qualifying week. There are many SMP calculators available to help employers work the correct figure out as it can become confusing.
The remaining 33 weeks (a total of 39 weeks’ pay) are paid at the statutory rate above.
Statutory Paternity Pay
The employee is entitled to one OR two weeks’ pay at the statutory rate, or 90% of their average earnings if they earn less than the statutory rate.
Statutory Shared Parental Pay
Unlike statutory maternity and adoption pay, there is no enhanced rate during the first six weeks.
Statutory Sick Pay
The new statutory sick pay (SSP) rate from 6 April 2021 will be £96.35 up from £95.85. SSP can only be paid for a maximum of 28 weeks in any one period.
National Minimum Wage Rates
|
|
Current NMW Rate |
NMW Effective 1st April 2021 |
| Apprentices
Those aged under 19 and also those aged over 19 but in their first year of an apprenticeship |
£4.15 |
£4.30 |
| Aged Under 18’s | £4.55 | £4.62 |
| Aged 18 – 20 Year’s Old | £6.45 | £6.56 |
| Aged 21 – 24 Year’s Old | £8.20 | £8.36 |
| Aged 25 and Over
The National Living Wage
|
£8.72 | |
| Aged 23 and Over
The National Living Wage |
£8.91 |
Redundancy Payments
The cap on a week’s pay for the purposes of redundancy will increase from £538.00 to £544.00 from 6th April 2021.
This means that when you are calculating redundancy payments, a weeks’ pay is capped at £544.00 per week, therefore any earnings in excess of this are not counted.
We are happy to help you further if you need HR advice about the statutory rates increases for 2021 in relation to the rights of your employees.
