The Department for Work and Pensions has announced new statutory payment rates for 2013-14, which are due to take effect from April 2013.
The rates for maternity, paternity and adoption pay will rise by £1.33 a week on the 2012-13 rates. For Statutory Sick Pay, the weekly increase on the 2012-13 rate is 85p. The new weekly payments will be:
|
Statutory payment type |
Rate |
|
Statutory Maternity Pay (SMP) |
£136.78 |
|
Ordinary Statutory Paternity Pay (OSPP) |
£136.78 |
|
Additional Statutory Paternity Pay (ASPP) |
£136.78 |
|
Statutory Adoption Pay (SAP) |
£136.78 |
|
Statutory Sick Pay (SSP) |
£86.70 |
The new rate for Statutory Sick Pay will take effect from 6 April 2013 with the rates for the other statutory payments effective from 7 April 2013.
Employers with an annual liability for Class 1 National Insurance contributions (NICs) of £45,000 or less in the relevant tax year can recover 100 per cent of their statutory payments, plus an extra three per cent as compensation for the employer’s Class 1 NICs on these.
Employers with an annual liability for Class 1 NICs of more than £45,000 in the relevant tax year can recover 92 per cent of statutory payments.
If the total SSP an employer pays in a tax month comes to more than 13 per cent of their gross Class 1 NICs liability for the month, they can also recover the excess.
The new rates, which were published on 27 December, are still subject to Parliamentary approval.
