New Pay Rates April 2017

The Government has published the new statutory rates for maternity pay, paternity pay, shared parental pay, adoption pay and sick pay from April 2017. Updated National Minimum Wage Regulations have also been published.

Maternity Pay, Paternity Pay, Shared Parental Pay and Adoption Pay

Currently, the statutory rates are £139.58 per week or 90% of the employee’s average weekly earnings if this figure is less than the statutory rate. From April 2017 the rates will increase to £140.98.

The rates have remained unchanged since April 2015 and therefore the increase will be a welcome change for parents.

Sick pay

Employees are entitled to receive statutory sick pay of up to 28 weeks subject to eligibility criteria. The rate for statutory sick pay is increasing from £88.45 to £89.35 per week from April 2017. The lower earnings limit (which the employee must meet in order to qualify for statutory sick pay) is due to increase from £112 to £113 per week.

The date of the above changes has not yet been announced; however the changes are expected to take place from sometime at the start of April 2017.

National Minimum Wage

The draft Minimum Wage (Amendment) Regulations 2017 have also been published this month. The Regulations propose to increase the standard adult rate and the apprenticeship rate. The changes are expected to take effect from 1 April 2017 and the rates are expected to be as follows:

• The national living wage (workers aged 25 and over) £7.50;
• Standard adult rate (workers aged between 21 and 24)  £7.05;
• Development rate (workers aged between 18 and 20) £5.60;
• Young workers rate (workers aged under 18 but above the compulsory school age who are not apprentices) £4.05;
• Apprentice rate £3.50; and
• Accommodation offset £6.40 per day.