Statutory Payments 2019-20

Statutory payments 2019–20

THE DEPARTMENT for Work and Pensions (DWP) has announced proposed
revised amounts for various statutory payments from April 2019. 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 maternity pay (SMP) – The weekly rate of SMP increases to
£148.68 with effect Sunday 7 April 2019. To qualify for SMP, the employee must
have average weekly earnings (AWE) of at least:
£118, if the baby is due on or after 21 July 2019
£116, if the baby is due on or before 20 July 2019.

● Statutory adoption pay (SAP) – The weekly rate of SAP increases to £148.68
with effect Sunday 7 April 2019. To qualify for SAP the employee must have AWE
of at least:
£118, if matching or notification occurs on or after 7 April 2019
£116, if matching or notification occurs on or before 6 April 2019.

● Statutory paternity pay (SPP) – The weekly rate of SPP increases to £148.68
with effect Sunday 7 April 2019. To be entitled to SPP the employee must have
AWE of at least:
£118, if the baby is due on or after 21 July 2019 (or the adoption matching
or notification occurs on or after 7 April 2019)
£116, if the baby is due on or before 20 July 2019 (or if the adoption
matching or notification occurs on or before 6 April 2019).

● Statutory shared parental pay (SShPP) – The weekly rate of SShPP
increases to £148.68 with effect Sunday 7 April 2019. To be entitled to SShPP
the employee must have AWE of at least:
£118, if the baby is due on or after 21 July 2019 (or the adoption matching
or notification occurs on or after 7 April 2019)
£116, if the baby is due on or before 20 July 2019 (or if the adoption
matching or notification occurs on or before 6 April 2019).

● Statutory sick pay (SSP) – The weekly rate of SSP increases to £94.25, from
6 April 2019. To be entitled to SSP for any periods of incapacity for work (PIW)
commencing on or after 6 April 2018 (and which do not link to an earlier PIW)
employees must have AWE of at least £118.

If the employee’s maternity, adoption, shared parental or paternity pay period
started on a day other than a Sunday, the new weekly rate of SMP, SAP, SPP or
SShPP does not apply until the beginning of the first complete SMP-, SAP-, SPPor
SShPP-week following Sunday 7 April.
It is expected that employers will continue to be able to recover 92% of SMP,
SAP, SPP and SShPP and that ‘small’ employers will be able to recover 100% of
SMP, SPP, SAP and SShPP plus a further 3% as ‘compensation’ for the employer (secondary) NICs incurred.

Source CIPP Magazine Feb 2019

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