Usually in January we report on increases to statutory payments which are due to be implemented on the 1st February, such as redundancy pay and guaranteed pay. However it has been announced that the effective date for such changes will now be 6th April each year, rather than the usual date of 1st February.
This brings the date in line with other statutory rate increases, such as maternity/paternity pay and sick pay, which have an annual implementation date each April.
While the new 2014 rates have yet to be announced for the statutory payments usually increased in February, the traditional April increases have been announced, and will be as detailed below. Alcumus will report on other increases once the information is available;
- Statutory maternity/paternity will increase from £136.78 to £138.18 per week.
- Statutory sick pay will increase from £86.70 to £87.55 per week.
In addition to the above increases, the government has published the draft National Minimum Wage (Variation of Financial Penalty) Regulations 2014, which will increase the maximum financial penalty for employers who flout the national minimum wage (NMW) from £5,000 to £20,000. The regulations are expected to come into force in February 2014.
The government want to introduce legislation as soon as possible so that the maximum £20,000 penalty can apply in respect of each underpaid worker.
HR clients of Alcumus should be aware that the Policy & Procedure Manual will be automatically updated in March to reflect the above increases to statutory payments.