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April Changes on the Way!

Changes to various rates, limits and statutory payments are on their way in April. It’s important that the relevant people in your organisation are aware of these so you don’t accidentally fall foul of the law.

Statutory Family Payment and Sick Pay Rates

From 7th April 2019 there will be an increase in statutory maternity, paternity, adoption and shared parental pay to £148.68 a week (an increase from the current rate of £145.18  a week).

This will mean that:

  • Statutory Maternity Pay (SMP)

First 6 weeks paid at 90% of normal weekly earnings then 33 weeks at £148.68 (or 90% of normal weekly earnings if this is lower)

  • Statutory Adoption Pay (SAP)

First 6 weeks paid at 90% of normal weekly earnings then 33 weeks at £148.68 (or 90% of normal weekly earnings if this is lower)

  • Statutory Paternity Pay (SPP)

£148.68 per week (or 90% of normal weekly earnings if this is lower)

  • Statutory Shared Parental Pay (ShPP)

£148.68 per week (or 90% of normal weekly earnings if this is lower)

Statutory Sick Pay (SSP) will increase from £92.05 per week to £94.25 per week from 6th April 2019.

National Minimum Wage

From 1st April 2019 the National Minimum Wage rates per hour will be as follows:

  • 25 and over (the National Living Wage) – £8.21 (up from £7.83)
  • 21-24 year olds – £7.70 (up from £7.38)
  • 18-20 year olds – £6.15 (up from £5.90)
  • 16-17 year olds –  £4.35 (up from £4.20)

The apprentice rate for apprentices under 19 and those aged 19 and over in the first 12 months of their apprenticeship is also increasing. It will rise from £3.70 to £3.90.

Changes to Compensation and Other Limits

Each year changes are announced to the limits on the compensatory award for unfair dismissal and other sums payable under employment legislation. The new limits will apply to dismissals/events that take effect on or after 6th April 2019.

The rates and limits that will be of most interest to employers are:

  • The limit on the compensatory award for unfair dismissal will increase from £83,682 to £86,444 (or 52  weeks’ pay of the individual concerned if this is lower)
  • The maximum amount of a week’s pay for the purposes of calculating statutory redundancy payments and the basic award in unfair dismissal claims will increase from £508 to £525
  • The limit on the amount of guarantee payment payable to an employee in respect of any day will increase from £28 to £29

The new statutory rates and limits will be included in the updated version of the Kingfisher Professional Services Ltd Guide for Employers which will be available for clients soon.

If you have any employment law matters you would like assistance with, please do not hesitate contact us as we are happy to help.