In this HR article we have provided a summary of the changes to statutory entitlement rates for employees in the UK which will come into effect in April 2024.
Statutory Entitlements
Statutory entitlements are the minimum rights and benefits employees are entitled to by law. The key statutory entitlements in the UK include:
• Statutory Sick Pay
• Statutory Maternity Pay
• Statutory Paternity Pay
• Statutory Adoption Pay
• Statutory Shared Parental Pay
• Statutory Bereavement Pay
• Statutory Redundancy Pay
• National Minimum Wage and the National Living Wage
Statutory Sick Pay (SSP) - to be eligible, an employee must be classed as an employee and earn an average of at least £123 per week. Employees are eligible on the fourth day they are off from work sick, and all days of sickness count towards the total number of days during the period of incapacity for work, including bank holidays, weekend and non-working days.
On the 06 April 2024 an increase to Statutory Sick Pay will come into effect, the rate will increase from £109.40 to £116.75.
Statutory Maternity Pay (SMP) – this is paid to expectant mothers during maternity leave, and eligible mothers can receive SMP for up to 39 weeks. This typically starts 11 weeks before the expectant week of childbirth.
From the 07 April there will be an increase in the rate of pay for Statutory Maternity Pay, the rate will increase from £172.48 to £184.03.
Statutory Paternity Pay (SPP) - is available to eligible employees who are taking time off work to care for a newborn or newly adopted child with their partner.
From the 07 April there will be an increase in the rate of pay for Statutory Paternity Pay, the rate will increase from £172.48 to £184.03.
Statutory Adoption Pay (SAP) – is available to eligible employees who are adopting a child, it is paid for 39 weeks and starts when the employee takes their adoption leave.
From the 07 April there will be an increase in the rate of pay for Statutory Adoption Pay, the rate will increase from £172.48 to £184.03.
Statutory Shared Parental Pay (ShPP) - allows eligible parents to share up to 50 weeks of leave and 37 weeks of pay following the birth or adoption of a child.
From the 07 April there will be an increase in the rate of pay for Statutory Adoption Pay, the rate will increase from £172.48 to £184.03.
Statutory Parental Bereavement Pay (SPBP) – this allows eligible employees to take time of work if a child dies before they turn 18 or if they have a stillbirth after 24 weeks of pregnancy.
From the 07 April there will be an increase in the rate of pay for Statutory Maternity Pay, the rate will increase from £172.48 to £184.03.
Statutory Redundancy Pay - this entitlement is provided to employees who are made redundant and have worked for their employer for at least two years. The amount of statutory redundancy pay depends on the employee's age, length of service, and weekly pay (up to a statutory maximum).
From the 06 April the limit on a week’s pay used for calculating statutory redundancy pay will increase from £643 to £700.
National Minimum Wage and National Living Wage
• For workers aged 21 and over (i.e., the National Living Wage), the rate will increase by £1.02 per hour (9.8%) from £10.42 per hour to £11.44 per hour. The age threshold for receiving the National Living wage has reduced from 23 years of age to 21 years of age, with those aged 21-22 years of age benefitting from an increase of £1.26 per hour (12.4%) from £10.18 per hour to £11.44 per hour
• For workers aged 18-20 inclusive, the rate will increase by £1.11 per hour (14.8%) from £7.49 per hour to £8.60 per hour
• For workers aged 16-17 inclusive, the rate will increase by £1.12 per hour (21.2%) from £5.28 per hour to £6.40 per hour
• The apprentice rate will increase by £1.12 per hour (21.2%) from £5.28 per hour to £6.40 per hour
• The daily rate for the accommodation offset will increase by £0.89 (9.8%) from £9.10 to £9.99
If you are a member of FPM seeking guidance on handling requests related to statutory entitlements, please do not hesitate to reach out to our HR helpline for assistance today, accessible via FPM Core.
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