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Statutory Employment Payments Changes 2021-2022

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Changes have now taken effect relating to statutory employment payments.

Employers must ensure they have taken action to ensure compliance, including reviewing and updating policies and documents, and adjusting statutory employment payments in line with the new applicable rates.

 

Increase in statutory sick pay

The weekly rate of statutory sick pay has increased to £96.35 from 6 April 2021.

 

Increase in statutory family-related pay

From 4 April 2021, family-related statutory weekly pay will increase as follows:

 

Statutory payment  Rate 2021 to 2022 (£)
Statutory Maternity Pay 151.97
Statutory Paternity Pay 151.97
Statutory Shared Parental Pay 151.97
Statutory Parental Bereavement Pay 151.97
Maternity Allowance  151.97
Statutory Adoption Pay 151.97

 

Statutory redundancy pay calculations

The statutory redundancy pay limit has increased to £544 for redundancy dismissals on or after 6 April 2021.

Employers that dismiss employees for redundancy must pay those with two years’ service an amount based on the employee’s weekly pay, length of service and age, subject to the maximum amount which is now £544 per week.

 

National minimum wage increases

From 1st April 2021, the national living wage increases to £8.91 per hour.

The age threshold for the national living wage has been extended to include 23- and 24-year-old workers from 1 April 2021, and not just those aged 25 and over.

Other national minimum wage rates also increase on 1 April 2021, with hourly rates rising to £8.36 for workers aged 21 and 22, to £6.56 for workers aged 18 to 20 and to £4.62 for workers aged 16 and 17.

 

Need assistance?

If you have a question about these changes in employment law and statutory payment rates, DavidsonMorris’ experienced employment lawyers can help. Working closely with our specialist human resource colleagues, we offer a holistic advisory and support service for employers encompassing both the legal and people risks of workforce management. Speak to our experts today for advice.

 

Last updated: 6 April 2021

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