Upcoming Statutory Payment Changes

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The standard weekly rate of statutory maternity pay (SMP) and the weekly rates of statutory adoption pay (SAP) ordinary statutory paternity pay (OSPP) and additional statutory paternity pay (ASPP) will rise from £124.88 to £128.73 for payment weeks starting on or after Sunday, 3 April 2011.  The weekly rate of statutory sick pay (SSP) will rise from £79.15 to £81.60 with effect from 6 April 2011.  Finally, the lower earnings limit for qualifying for SSP, SMP, SAP, OSPP and ASPP will rise from £97.00 to £102.00 per week from 6 April 2011. In addition, there will be a change to the additional payment made to small employers in relation to SMP, SAP, OSPP and ASPP.  Currently, employers who qualify for the small employers’ rate of reimbursement can recover 100% of the payments plus an additional amount of 4.5% in compensation for the employers’ share of National Insurance Contributions (NICs) due on the payments.  From 6 April 2011, the additional amount will reduce to 3%, meaning small employers will be able to claim back a total of 103% of the SMP, SAP, OSPP and ASPP they pay out.

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