New maternity pay, sick pay and redundancy rates announced
Employment Law & HR update 13/01/2012
The annual uprating of statutory maternity, paternity and
adoption pay and statutory sick pay has been announced. These will
rise from April 2012 in line with September's RPI, by 5.2%.
The rate of statutory redundancy pay will also increase from
1st February by 7.5%, from £400 to £430 for "a week's
pay". The high level of this rise is the result of a legal formula
under which increases are based on RPI but rounded up to the
nearest £10. Using RPI alone, statutory redundancy pay would have
increased to £420.80. In future years, the Government has announced
that any rise will only be rounded up to the nearest pound, to
"avoid further increases well above the rate of inflation".
The new rates are as follows:
Statutory Maternity, Paternity, Adoption and Sick
Pay
|
Payment
|
Current rate
|
Rate from April
2012
|
|
Statutory Maternity, Paternity and Adoption pay
|
£128.73
|
£135.45 From 1st
April
|
|
Statutory Sick Pay
|
£81.60
|
£85.85 From 6th April
|
Redundancy pay, Unfair Dismissal awards and Guarantee
payments
|
Payment
|
Current rate
|
Rate from 1st February
2012
|
|
Statutory Redundancy Pay (statutory limit on "a week's pay" for
calculation purposes)
|
£400
|
£430
|
|
Guarantee Payments per day
|
£22.20
|
£23.50
|
|
Unfair Dismissal
maximum compensatory award
|
£68,400
|
£72,300
|