Statutory Pay

• Payments may be required from an employer if an employee is not at work for a variety of reasons.

• There are detailed conditions for an employee to qualify for any of these statutory payments.

• Employees are only eligible for a statutory payment if they have sufficient average weekly earnings of at least the lower earnings limit.

Statutory Sick Pay

• Payments may be required from an employer if an employee is too ill to work.

• SSP is generally payable for a period up to 28 weeks.

Statutory Maternity Pay

• Payments may be required from an employer when an employee takes time off to have a baby.

• SMP is payable for a period up to 39 weeks.

Ordinary Statutory Paternity Pay

• Payments may be required from an employer when an employee takes time off during their partner's Statutory Maternity Pay period.

• Payment is for a period of either one or two complete weeks.

Shared Parental Pay

• Payments may be required from an employer when an employee takes time off following the curtailment of the period of SMP by the mother.

• Payment is for up to a maximum of 37 weeks and is dependent on the mother's unused SMP period.

Statutory Adoption Pay

• Payments may be required from an employer when an employee takes time off when they adopt a child.

• Payment is for a period up to 39 weeks.

State Pensions

• The basic State Pension is a regular payment from the government that an individual may be entitled to when they reach State Pension age.

• The basic State Pension depends on the number of years an individual has paid National Insurance or has National Insurance credits,
  eg while unemployed or claiming certain benefits.

• To receive the basic State Pension an individual must have paid or been credited with National Insurance contributions (NIC).

• From 2016 the State Pension has been reformed into a new single-tier state pension. In order to benefit from the full amount the individual
  will need 35 years, rather than the previous 30 years of NIC or credits for the full amount, with pro-rating where 35 years is not achieved.
  You will usually need 10 qualifying years to get any new State Pension. The amount an individual receives can be higher or lower depending
  on their National Insurance record. It will only be higher if you have over a certain amount of Additional State Pension.

• Currently an individual may also be entitled to the Additional State Pension. How much an individual gets depends on the number of
  qualifying years of NIC, the amount of earnings and whether the individual has been contracted out of the scheme.

2017/18 Statutory Pay Rates -
average weekly earnings £113 or over

 
Statutory Sick Pay  £89.35
Statutory Maternity Pay
 
First six weeks
 90% of weekly earnings
Next 33 weeks
 £140.98*
Statutory Paternity Pay - 2 weeks
 £140.98*
Statutory Adoption Pay - 39 weeks
 
First six weeks  90% of weekly earnings
Next 33 weeks
 £140.98*
Shared Paternity Pay
 £140.98*
Weekly State Pension 2017/18
 
Basic - single person
£122.30
Basic - married couple
£195.60
New state pension
£159.55

* or 90% of weekly earnings if lower
 

Disclaimer

This publication is published for the information of clients. It provides only an overview of the regulations in force at the date of publication and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this publication can be accepted by the authors or the firm.