Changes to Statutory Payments – New Tax Year April 2018

As we are approaching another tax year, the DWP has announced proposed revised amounts for various statutory payments from April 2018. Note that though the DWP has yet to confirm the effective dates, the following reflects the position of most changes occurring on the first Sunday in April.

 

Statutory Sick Pay (SSP)

The weekly rate of SSP increases to £92.05 with effect 6 of April 2018.

To be entitled for SSP employees must have average weekly earnings of at least £116.

 

Statutory Maternity Pay (SMP)

The weekly rate of SMP increases to £145.18 with effect Sunday 1 April 2018. To qualify for SMP, the employee must have average weekly earnings of at least

• £116, if the baby is due on or after 15 July 2018
• £113, if the baby is due on or before 14 July 2018

 

Statutory Adoption Pay (SAP)

The weekly rate of SAP increases to £145.18 with effect Sunday 1 April 2018. To qualify for SAP, the employee must have average weekly earnings of at least

• £116, if the matching or notification occurs on or after 01 April 2018
• £113, if the matching or notification occurs on or before 31 March 2018

 

Statutory Paternity Pay (SPP)

The weekly rate of SPP increases to £145.18 with effect Sunday 1 April 2018. To be entitled to SPP the employee must have average weekly earnings of at least

• £116, if the baby is due on or after 15 July 2018
• £113, if the baby is due on or before 14 July 2018

 

Statutory Shared Parental Pay (SShPP)

The weekly rate of SShPP increases to £145.18 with effect Sunday 1 April. To qualify the employee must have average weekly earnings of at least

• £116, if the baby is due on or after 15 July 2018
• £113, if the baby is due on or before 14 July 2018.

Confirmation from the DWP is expected that employers will continue to be able to recover 92% of SMP, SPP and SShPP and small employers will be able to recover 100% plus a further 3% as ‘compensation’ for the employer’s National Insurance Contributions incurred.

If you require any further information or have any questions regarding statutory payments, please contact payrollclientsupport@aab.uk or your usual AAB contact.