The Government has announced the increases to the rates for statutory payments that employers must pay. The Department for Work and Pensions (DWP) has recommended the following changes are approved by Parliament and will be effective from April 2011:
- Statutory sick pay (SSP) will rise from £79.15 to £81.60 per week.
- Statutory maternity pay (SMP) will increase from £124.88 to £128.73 for the 33 weeks following the initial six weeks at 90 per cent of earnings
- The increases in SMP are mirrored in ordinary statutory paternity pay (OSPP), additional statutory paternity pay (ASPP) and statutory adoption pay (SAP).
- Small employer recovery rates (the amount a small employer can reclaim under the 'small employers' compensation rate') will fall from 104.5% to 103% per cent.
The proposed rate changes are subject to sign off from Parliament.