The statutory rates increase for 2021 are effective from Sunday 4th April 2021 and increase from £151.20 per week to £151.97 per week for the following:
Statutory Maternity Pay (SMP)
Statutory Paternity Pay (SPP)
Statutory Adoption Pay (SAP)
Statutory Shared Parental Pay (ShPP)
Statutory Parental Bereavement Pay (SPBP)
Statutory Maternity and Adoption Pay
The first 6 weeks are paid at 90% of the employee’s average weekly earnings calculated in the relevant period. Earnings are those where Class 1 National Insurance contributions are due.
The relevant period is 8 weeks before the qualifying week. There are many SMP calculators available to help employers work the correct figure out as it can become confusing.
The remaining 33 weeks (a total of 39 weeks pay) are paid at the statutory rate above.
Statutory Paternity Pay
The employee is entitled to one OR two weeks’ pay at the statutory rate, or 90% of their average earnings if they earn less than the statutory rate.
Statutory Shared Parental Pay
Unlike statutory maternity and adoption pay, there is no enhanced rate during the first six weeks.
Statutory Sick Pay
The new statutory sick pay (SSP) rate from 6 April 2021 will be £96.35 up from £95.85. SSP can only be paid for a maximum of 28 weeks in any one period.
National Minimum Wage Rates
For those aged 23 & over – NLW rises to £8.91 per hour (Note this used to apply to only those aged 25 and over)
For 21 and 22 year olds the rate will be £8.36 per hour
For those aged 18 – 20 it will be £6.56 per hour
For those under 18 it will be £4.62 per hour
The apprentice rate will rise to £4.30 per hour.