Workers are entitled to certain minimum provisions in respect of wages, maternity, paternity and adoption pay, sick pay and redundancy, while mileage allowances are also subject to basic entitlements. A number of these provisions increased in value in April. The current figures are provided below.
National Living Wage/National Minimum Wage
The National Living Wage is the minimum rate an employer must pay any employee aged 23 and over, while the National Minimum Wage applies to staff under the age of 23. The rates increased with effect from 1 April 2022.
By comparison, the voluntary ‘real’ Living Wage stands at £9.90 (£11.05 in London) as at 1 November 2021.
Maternity, paternity and adoption pay and shared parental pay
Women are eligible for up to 52 weeks’ statutory maternity leave, comprising 26 weeks’ ordinary maternity leave and 26 weeks’ additional maternity leave. They do not have to take their full entitlement but must take at least two weeks’ leave after the baby is born (four weeks for factory workers). For those who have been continuously employed at their current place of work for at least 26 weeks up to any day in the 15th week before the expected week of childbirth, statutory maternity pay (SMP) is payable for up to 39 weeks as detailed in the table below.
Maternity allowance (MA) is available for those women who do not qualify for SMP and is aimed at those, including both self-employed and recently employed women, whose incomes are closer to the lower weekly earnings limit. This is paid at the lower of £156.66 or 90% of average weekly earnings for up to 39 weeks.
Statutory paternity pay (SPP) is granted to partners of primary carers taking either one or two consecutive weeks’ leave. The start date of an employee’s leave must be either the actual date of the birth, an agreed number of days after the birth, or an agreed number of days after the expected week of the birth; it cannot start before the birth. The amount of time is the same even if they have more than one child (for example twins).
As of 6 April 2022, the weekly rate of SPP is £156.66 or 90% of the employee’s average weekly earnings, whichever is lower.
Statutory adoption pay (SAP) is paid to new adoptive parents for up to 39 weeks, however it is only available to the primary carer. As of 6 April 2022, the weekly rate of SAP is:
Shared parental pay (ShPP) applies to employees who end their SMP/SAP (and associated leave) early and return to work and allows them to share their unused leave and pay with their co-parent. To be eligible for ShPP, an employee must qualify for SMP; SAP; or SPP, if their partner qualifies for SMP or SAP. As of 6 April 2022, the weekly rate of ShPP is £156.66 or 90% of the employee’s average weekly earnings, whichever is lower.
Statutory sick pay
In the event of illness, statutory sick pay (SSP) is granted to employees who are unable to work for four or more consecutive days and is paid up to a maximum of 28 weeks. Employees are not paid SSP for the first three working days they are off sick unless they have received SSP (including a three-day waiting period) within the last eight weeks. As of 6 April 2022, the weekly rate of SPP is £99.35.
Employees who have at least two years’ service are entitled to statutory redundancy pay (SRP) in the event that they are made redundant.
As of 6 April 2022, redundancy pay is capped at £571 (£594 in Northern Ireland) per week, while length of service is capped at 20 years.
Company car tax and mileage allowances
Mileage allowance payments (MAPs) are reviewed quarterly. Click here for the latest figures, as well as details of the current company car tax rates.
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