The government has announced several new statutory rates that will come into effect for employees in April 2025.
Statutory sick pay and statutory parental pay are set to change on April 6th. This change aims to improve living standards and promote pay equity.
What are statutory payments?
Statutory payments are payments that employees are legally entitled to in certain situations. This includes illness, maternity, paternity and bereavement.
Changes to statutory sick pay
From April 6, 2025, statutory sick pay (SSP) will rise from £116.75 to £118.75 per week. To qualify, employees must earn at least £125 per week. This change will benefit over 1 million of the UK's lowest-paid workers. It will ensure they receive up to 80% of their weekly salary or the new SSP rate, whichever is lower.
Currently, SSP is only paid from the fourth day of illness. This often forces many people to work while unwell. However, under the proposed Employment Rights Bill, sick pay could start from the first day of illness.
Increased statutory payments for family-related leave
The Government has also announced an increase in statutory rates for the following types of leave:
- maternity pay
- paternity pay
- adoption pay
- shared parental pay
- parental bereavement pay
The weekly statutory rate for these payments will rise from £184.03 to £187.18 per week. This change ensures that employees taking time off for family-related reasons receive additional financial support.
In addition, the Lower Earnings Limit (LEL) will increase from £123 to £125 per week. This is the minimum weekly earnings required for employees to qualify for these statutory payments.
What do employers need to do?
Employers should review their payroll systems and policies to ensure compliance with these new rates. It is essential to communicate these updates to HR teams and payroll providers. This will help prevent any disruptions in processing payments for eligible employees.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
