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The draft Social Security Benefits Up-rating Order 2024 has now been published and outlines the statutory payment rates for the tax year 2024/25.
The standard weekly rates of Statutory Maternity Pay, Statutory Adoption Pay, Statutory Paternity Pay, Statutory Shared Parental Pay and Statutory Parental Bereavement Pay will increase from £172.48 to £184.03 per week or 90% of the employee’s average weekly earnings if that figure is lower than the statutory rate. This change will come into effect on 7 April 2024.
The weekly statutory sick pay rate is also to increase, from £109.40 to £116.75 on 6 April 2024.
Additionally, the draft Social Security (Contributions) (Limits and Thresholds, National Insurance Funds Payments and Extension of Veterans Relief) Regulations 2024 have been published, confirming that the lower earnings limit, in which employees do not qualify for statutory payments if they are below it, will continue to remain at the current level of £123 per week from 6 April 2024.
It is significant to note that the rate change to Statutory Sick Pay will always take effect from the start of the new tax year, that is, 6 April. However, any changes to other statutory payments often take effect from the first Sunday in April, which this year will be Sunday 7 April 2024.
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This article has been produced for general information purposes and further advice should be sought from a professional advisor.