UPCOMING CHANGES IN STATUTORY RATES

UPCOMING CHANGES IN STATUTORY RATES

We have put together a summary of the increase in statutory rates from April 2019.

Statutory Redundancy Payments – from 6th April 2019

Capped Amount            £525.00 per week
Maximum Amount         £15,750.00

Guaranteed Payment – from 6th April 2019

Will increase to £29.00 per day giving a maximum guarantee payment of £145.00 for 5 workless days in any 3-month period.

Tribunal Awards – from 6th April 2019

Compensation award for unfair dismissal £86,444.00

(excludes health and safety and whistleblowing which is uncapped)
Maximum basic award for unfair dismissal –  £15,750.00

Minimum Wage – from 1st April 2019

The minimum wage rates for all ages as from 1st April 2019 will be:

  • Over 25 year olds – £8.21 per hour
  • 21-24 year olds – £7.70 an hour
  • 18-20 year olds – £6.15 an hour
  • 16-17 year olds – £4.35 an hour
  • Apprentice rate – £3.90 an hour
  • The maximum amount that can be offset where accommodation is provided is £7.55 per day or £52.85 per week.

Maternity and Adoption – Statutory Maternity and Adoption Pay Rates – from 7th April 2019

First 6 weeks – 90% of employee’s average weekly earnings
Further 33 weeks – £148.68 per week or 90% of average weekly earnings (whichever is lower)
SMP – Total of 39 weeks

LEL must be over £118.00 per week to qualify (see below)  

Paternity – Statutory Paternity Pay Rates – from 7th April 2019

One of two weeks – £148.68 per week or 90% of average weekly earnings (whichever is lower)

Shared Parental – Statutory Shared Parental Pay Rates – from 7th April 2019

A maximum of 39 weeks ShPP is payable and this will be reduced by the number of week’s statutory maternity/ adoption pay already received by the mother or primary adopter. ShPP is £148.68 per week or 90% of the employee’s normal weekly earnings, whichever is the lower.

Statutory Sick Pay Rates – from 6th April 2019

Weekly rate                      £94.25
Total SSP per year          28 weeks (196 days)

LEL must be over £118.00 per week to qualify (see below)

Lower Earnings Limit (LEL)

The Lower Earnings Limit which is currently £116.00 per week will increase to £118.00 per week.

Automatic Enrolment Pension Contributions – from 7th April 2019

Date
Employer Minimum Contribution
 Employee ContributionTotal Minimum Contribution
7 April 2019 onwards  3% 5% 8%

Fiona Haworth

You can contact Fiona on fiona@practical-hr.co.uk

If you feel that you need guidance or advice on this matter, please call Practical HR on 01702 216573 or email Fiona on the above.