From EBS Law

Current statutory payments

Posted in EBS Law
By EBS Law
Nov 19, 2009 - 2:58:52 PM
 

STATUTORY RATE UPDATE

 

A reminder of the rates associated with various statutory payments.

 

Unfair Dismissal/Redundancy

 

The cap on a week's pay relevant for several awards/payments including statutory redundancy pay is currently £380 (both the maximum redundancy payment and unfair dismissal basic award being £11,400) and the maximum unfair dismissal compensatory award is £66,200.

 

Lay-Off & Short Working

   

Employees have the right to a minimum level of "fall back" pay in respect of any normal working day for which the employer provides no work, such a lay-offs and short time working.    This fall back pay is called a "guarantee payment".   The rate is £21.50 per day.   The normal maximum level of guarantee works out at £107.50 in any 3-month period as it is restricted to pay for 5 days in any three months.

 

Family Payments & SSP


The standard rates of statutory maternity pay (SMP), statutory paternity pay (SPP) and statutory adoption pay (SAP) and the rate of maternity allowance (MA) are now £123.06 per week.   The weekly rate of statutory sick pay (SSP) is £79.15.   The earnings threshold for qualifying for SMP, SPP, SAP and SSP is £95.00 per week.

 

National Minimum Wage

 

As from 1st October 2009 the hourly National Minimum Wage rate is increased as follows:-

 

  • adult rate for those aged 22 or more the increase is from £5.73 to £5..80;
  • for 18-21 year olds the increase is from £4.77 to £4.83;
  • for 16-17 year olds the increase is from £3.53 to £3.57.

 

Apprentices aged 16-18 and those aged 19 and over in their first year as an apprentice are not entitled to the National Minimum Wage.   However in 2005 the Learning and Skills Council introduced a requirement that employers pay apprentices a minimum of at least £80 per week and the government announced in September 08 that this minimum will be increased to £95 a week in 2009.   As the average wage paid to apprentices is stated to be £170 week this is unlikely to have much effect in practice.

 

For more information, regarding this topic or our retained services, which includes an unlimited use advice line, letter drafting, very successful tribunal defence scheme and visits to your site, contact EBS on 01625 874400.

 


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