Call us on 0844 324 5840

NEWS

Statutory Maternity and Sick Pay Rates Frozen for 2016

Statutory Pay Rates Frozen | HR Solutions

Following on from the Autumn Budget, the Government has announced that there will be no increase to a variety of statutory pay rates in 2016.

The affected statutory rates include maternity and paternity pay, shared parental pay, adoption pay and sick pay. A complete list of the Government’s statutory pay rates for 2016 can be found here.

After the first six weeks of maternity leave, which are paid for at 90% of the employee’s average weekly earnings, employees are entitled to 33 weeks of statutory maternity pay. This is paid at the rate set by the Government. The current rate for statutory maternity and other parental pay is 90% of an employee’s weekly earnings, up to a maximum of £139.58 a week.

There is no statutory requirement for the government to increase these rates every year. Any increase is normally in line with the consumer price index (CPI) which fell by 0.1% in the year to September, leading to the freeze.

The rate of statutory sick pay is also frozen at the current rate of £88.45 per week.

In order to be entitled to claim these statutory payments an employee’s average earnings must be equal to or greater than the lower earnings limit. This will also be frozen at £112 per week.

Greg Guilford, CEO of HR Solutions said: “The cost of living is continuing to rise, hence why George Osbourne is re-branding the national minimum wage as the National Living Wage from April.”

“Employees planning to take any kind of parental leave over the next year may find this to be a real financial blow but, as the CPI has actually declined, you could argue that we are lucky to not be seeing a reduction in statutory pay instead.”


Do you have any questions about how to manage parental rights in your business? Our expert HR consultants can help. Call us on 0844 324 5840 or contact us online to find out more.

SHARE THIS:

Instagram

GET IN TOUCH

Got questions? Looking for advice?

RELATED RESOURCES

Explore our comprehensive library of related resources to gain valuable insights, expert tips, and helpful tools for optimising your HR practices.

01
Half of UK employers expect redundancies after furlough scheme ends
4 June 2020
02
Tribunal cases and wait times increasing
19 December 2018
03
Interesting HR Statistics 2018
14 December 2018

PARTNER REGISTRATION

Register your details below and we will contact you regarding how HR Solutions can support your organisation.

MAKE A GENERAL ENQUIRY

We’re here to assist you with any questions or enquiries you might have. Simply fill out the form below, and our dedicated team will get back to you.

REQUEST A PROPOSAL FROM US

We’re here to assist you with any questions or enquiries you might have. Simply fill out the form below, and our dedicated team will get back to you.

BOOK YOUR PLACE

Please complete the form and one of our team will call you back to discuss your query/booking.

Request your free trial

Register your details below and we will contact you about your 30 day free trial of the HR Knowledge Base.

REGISTRATION FORM

Register your details below and we will contact you about access to the HR Knowledge Base.  As part of your approved industry membership organisation you can get access to the HR Knowledge Base, created by Business HR Solutions, which is the go-to resource for thousands of business owners and managers across the UK.

2023/2024 SME BUSINESS SURVEY

Our latest 2023/24 SME Business Survey sheds light on the intricate dynamics shaping the SME sector and unveils critical insights that can guide businesses toward sustainable success.

IF YOU WISH TO PURCHASE HR ADVICE LINE TIME, PLEASE COMPLETE THE FORM BELOW.

HR Solutions are here to help. We offer a standard hourly rate package for ad hoc HR advice which means you can pay for what you need, whenever you need it, and then quickly get advice. Our highly experienced advisors are on hand to provide you with practical employment advice to help you manage your workforce.  You can purchase HR Advice Line time now, and the time purchased will be valid for 12 months.