Increase in Statutory Pay Rates
The government have now released the draft version of the The Social Security Benefits Up-rating Order 2010 which is set to be introduced in April 2010 and will amend various statutory payments, including maternity pay, adoption pay, paternity pay, and the National Insurance Lower Earnings Limit.
Brendan Wincott, mhl’s Employment Law Compliance Officer tells us briefly about the changes.
“Under the draft order, statutory maternity pay will be increasing to £124.88 per week from the 6th April 2010 along with similar increases to adoption and paternity pay. This rate increases from what is presently £123.06 per week.
However, and rather unusually, statutory sick pay is not increasing and will remain at the present £79.15 per week.
Finally, under the draft order, the National Insurance Lower Earnings Limit will also be increasing from the current £95 per week to £97 per week. This figure is important for employer to be aware of as entitlement to various statutory payments like sick pay and maternity pay for example can depend on an employee having earnings at least at this level”
It is important for employers to understand their obligations to make payments whilst staff members are sick, or on maternity, paternity and adoption leave, and further, to understand the provisions detailing whether any such payments can be reclaimed by an employer.
mhl has a team of specialist and experienced advisers who are fully up to speed on the up and coming changes and are able to tell you more about the new rates that will apply from April. If you are an existing client, please call one of the team today on 08453 100 999 quoting your PCN number.
If you are not already a client, but are interested in learning more about the services mhl provide, please call one of our team members on 08453 100 600.
