As the festive season draws to an end and the New Year begins, it is the peak time for employers to familiarise themselves with, and prepare for, legislative changes that will be introduced this year. One of the main changes to note is the increase to the statutory rates for maternity pay, paternity pay, shared parental pay and sick pay, which will be introduced in April this year.

The increase in the statutory rates are as follows:

Category of Statutory Pay	Current rate	New rate	Expected date of change
Maternity Pay	90% of average weekly earnings for the first 6 weeks then £140.98 per week or 90% of the employees average weekly earnings (whichever is lower) for the remainder of leave.	90% of average weekly earnings for the first 6 weeks then £145.18 per week or 90% of the employees average weekly earnings (whichever is lower) for the remainder of leave.	1st April 2018
Paternity Pay	£140.98 per week of 90% (whichever is lower).	£145. 18 per week or 90% (whichever is lower).	1st April 2018
Shared Parental Pay	£140.98 per week of 90% (whichever is lower).	£145. 18 per week or 90% (whichever is lower).	1st April 2018
Adoption Pay	90% of average weekly earnings for the first 6 weeks then £140.98 per week or 90% of the employees average weekly earnings (whichever is lower) for the remainder of leave.	90% of average weekly earnings for the first 6 weeks then £145.18 per week or 90% of the employees average weekly earnings (whichever is lower) for the remainder of leave.	1st April 2018
Sick Pay	£89.35 per week paid for up to 28 weeks.	£92.05 per week paid for up to 28 weeks.	6th April 2018

 

National Minimum Wage  

In addition to the increase to statutory rates, April will also see an increase in the National Minimum Wage and National Living Wage (paid to employee of 25 and over).

The new rates are as follows:

Age Range	Current rate	New rate	Change Date
Apprentice	£3.50 per hour	£3.70 per hour	April 2018
Under 18	£4.05 per hour	£4.20 per hour	April 2018
18 to 20	£5.60 per hour	£5.90 per hour	April 2018
21 to 24	£7.05 per hour	£7.38 per hour	April 2018
25 and over (National Living Wage)	£7.50 per hour	£7.83 per hour	April 2018

 

Preparing for the increase

The new statutory rates and national minimum wage rates will be introduced in April 2018, therefore employers should take this opportunity to prepare for the changes and account for them in their annual budget. In addition, dependant on the content of company policies, these may need to be amended to reflect the increased rates.

If we can help you with this or any other HR issue, please do not hesitate to contact a member of our HR Team at HR Services Scotland Ltd on 0800 069 8970