It is that time of year again when we advise you of changes to statutory payments. The only changes taking effect from April 2016 are:
- The maximum compensatory award for unfair dismissal has increased from £78,335 to £78,962.
- The maximum amount of a week’s pay, used to calculate statutory redundancy payments and various awards including the basic and additional awards for unfair dismissal increased from £475 to £479.
Please note that Tribunal compensation limits increased on 6th April 2016 under the Employment Rights (Increase of Limits) Order 2016.
The following statutory payments have not increased this year and remain the same for 2016/17.
- Statutory Maternity Pay, Statutory Paternity Pay,
- Shared Parental Pay and Statutory Adoption Pay: £139.58 per week
- Statutory Sick Pay: £88.45 per week
- Statutory Guarantee Pay (Lay off): £26.00 per day
As advised in our September 2015 edition, the Government have introduced the National Living Wage from April 2016. You must pay the new mandatory living wage (NLW) for workers aged 25 and above, which is set at £7.20 per hour (a premium of 50 pence on top of the current National Minimum Wage adult rate of £6.70).
If you have any queries in relation to the above, please do not hesitate to contact your HR Consultancy team.