How Useful: Statutory Payments and Other Financial Limits

Mar

4

How Useful: Statutory Payments and Other Financial Limits

From the 6th April 2014 the following statutory rates and limits apply.

Here’s a little document you might want to keep handy…

National minimum wage (Likely to change again on 1 October 2014)

Aged 21 and above: £6.31

Aged 18 to 20 inclusive: £5.03

Aged under 18 (but above compulsory school leaving age) £3.72

Apprentices aged under 19 £2.68

Apprentices aged 19 and over, but in the first year of their apprenticeship £2.68

Statutory maternity, paternity and adoption pay

Statutory Maternity Pay (SMP)

(please note that an employee must be entitled to Maternity Pay, call us for more information)

First six weeks = 90% of the employee’s average weekly earnings

Remaining weeks = £138.18 or 90% of the employee’s average weekly earnings, (whichever is lower)

Ordinary Statutory Paternity Pay (OSPP) & Additional Statutory Paternity Pay (ASPP)

Weekly rate = £138.18 or 90% of the employee’s average weekly earnings (whichever is lower).

Statutory Adoption Pay (SAP)

Weekly rate £138.18 or 90% of the employee’s average weekly earnings (whichever is lower).

Recovery of SMP/OSPP/ASPP/SAP

– you can recover 92% of your payments from HMRC if your total Class 1 NICs (both employee and employer contributions) are above £45,000 for the previous tax year.

– you can recover 103% of your payments from HMRC if your total Class 1 NICs (both employee and employer contributions) are  £45,000 or lower for the previous tax year.

Statutory Sick Pay

Remember that the first 3 days of any period of absence due to sickness are waiting days where no SSP is due.

Standard weekly rate = £87.55

Statutory Redundancy Pay

£464 is the maximum amount of a week’s pay for calculating statutory redundancy pay (& the basic award for unfair dismissal).

£13,920 will be the largest possible statutory redundancy payment or basic award (up from £13,500).

Tribunal Caps on Pay

£13,920 will be the largest possible  basic award.

£76,574 will be the maximum compensatory award which can be made after a successful “ordinary” unfair dismissal claim.

£90,494 is the maximum potential award for unfair dismissal when the basic and compensatory awards are combined.

 

Please note that most commonly these rates and limits are increased in April each year (October for National Minimum Wage), and are correct at time of publishing (March 2014)

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