Statutory Pay Rates Guide for 2024-2025

Statutory Pay Rates Guide for 2024-2025

Staying up-to-date with statutory pay rates is crucial, both from a HR & payroll compliance point of view and for employee trust.

We’re sharing the latest statutory pay rates for 2024-2025 so you can see these at a glance. We are also sharing emerging pay trends and Q&As around statutory pay rates helping you to stay at the forefront of positive workplace change in the evolving payroll landscape.

Statutory Sick Pay (SSP) rates for 2024-2025

Statutory Sick Pay (SSP) is set at £116.75 per week for an employee who is too ill to work. This is paid by the employer for up to 28 weeks.

When does statutory sick pay start?

Employees are eligible for SSP from the fourth day of their sickness absence (including bank holidays and weekends), provided they meet the qualifying criteria:

• They have an employment contract and have done work under this contract
• They earn at least £123 per week on average.
• They provide you with adequate notice and proof as required.

Sick leave should form part of the employee handbook with a HR policy around how the employee should notify their manager. For example, many companies request a phone call or verbal communication rather than an email or text message.

SSP is only paid at the rate of their normal working pattern. For example if they work a 3 day week they won’t be entitled to 5 days worth of SSP in a week so this will be worked out as a percentage. For any queries relating to sick pay feel free to get in touch.

Labour has proposed that the waiting days for SSP (day 1-3) be scrapped in future employment law changes so extra vigilance is needed whilst following payroll legislation changes to ensure you stay up to date.

Ultimate Guide to HR Policies

How long is the self-certification process for sick leave?

7 days. A fit note is required from a GP or qualified healthcare provider after these 7 days are complete and this can be in a printed or digital format.

Reasons why employees don’t qualify for Statutory Sick Pay

There may be circumstances where your employee is not eligible for Statutory Sick Pay or no longer entitled to it.

• The main one is if they have been off sick for longer than the maximum period of 28 weeks. Other circumstances include:
• For those receiving Statutory Maternity Pay or Maternity Allowance (there are special rules for this).
• Pregnancy-related illnesses close to the birth period – 4 weeks before the due date
• If they were in custody or on strike on the first day of their sickness,
• Are working outside the EU
• Received Employment and Support Allowance within 12 weeks of starting or returning to work for you.

What happens if an employee isn’t eligible for sick pay?

If someone is not eligible for Statutory Sick Pay (SSP), it is your responsibility as an employer to tell them why in writing. Provide this information to the employee by using either:

• An SSP1 form
• A letter or email

Your employee may still be entitled to financial support or benefits to help with living costs. It is worth helping your employee explore these to help reduce financial stress as a result of reduced pay during sick leave which can further worsen symptoms or effect work performance.

Can you still reclaim Statutory Sick Pay from HMRC?

During the beginning of the pandemic a temporary relief was put in place on SSP from HMRC. The Coronavirus Statutory Sick Pay Rebate Scheme has now closed. The last date for submitting or amending a claim was 24 March 2022.

How to reduce sick leave

Employers are looking at proactive ways to reduce absenteeism by supporting staff both with physical symptoms and mental health, whilst also making accommodations for menopausal symptoms.

Explore Sick Rate Statistics and Trends

Statutory Maternity Pay (SMP) rates for 2024-2025

Statutory Maternity Pay (SMP) is paid in total for 39 weeks. It starts at 90% of the employee’s average weekly earnings for the first six weeks. For the remaining 33 weeks, it is £184.03 per week or 90% of the employee’s average weekly earnings, whichever is lower. – however maternity leave lasts for 52 weeks.

You can use a maternity pay calculator to check this.

Eligibility for Statutory Maternity Pay

To qualify for SMP the employee must:

• Earn at least £123 on average per week.
• Give the correct notice and proof they are pregnant and have worked for their employer continuously for at least 26 weeks, continuing into the ‘qualifying week’ – the 15th week before the expected week of childbirth.

Campaign for enhanced Statutory Maternity Pay

Campaigners want the government to consider doubling maternity pay to avoid new mothers being forced to return to work too soon especially due to the cost-of-living crisis.

What’s more the current system of waiting 26 weeks in a new job before being eligible for pay means mothers are missing out on career progression opportunities as those looking to start a family often feel trapped in their current roles and may contribute to the gender pay gap.

How many employees offer enhanced pay for maternity leave as an employee benefit?

Here’s the current split for organisations offering enhanced Statutory Maternity Pay:

• 21% of employers offer 26 weeks of enhanced maternity pay at or near the full rate of pay followed by 13 weeks at the SMP rate or 90% of the average weekly earnings.
• 18% of employers now offer between 4 and 13 weeks of enhanced maternity pay at or near the full rate of pay.
• 33% of organisations have a maternity pay policy that covers the statutory minimum requirement.

Should you offer enhanced maternity pay as an employee benefit?

To consider if enhanced maternity pay is right for your business some things to consider are:

1) Your business size and budget, enhanced maternity pay is a great employee benefit if there is enough financial security to input this in a way that doesn’t significantly impact the business, it must also be sustainable and fair. Read here about our Small Business Payroll services.

2) Would implementing this make you stand out amongst your competitors for hiring talent? Consider the norm for your industry, it’s important not to fall behind trends or you may wish to become a trend setter to stand out as a progressive organisation.

Remember that paying close attention to your gender pay gap, either as an obligation as a larger organisation or as part of pay reporting in a SME allows you to support women in your business too.

Keep Reading about Gender Pay Gap Reporting

Statutory Paternity Pay (SPP) rates for 2024-2025

Statutory Paternity Pay (SPP) is £184.03 per week or 90% of the employee’s average weekly earnings, whichever is lower. This is the SPP rate for 2024.

If an employee is eligible for Statutory Paternity Leave, by law they can choose to take either 1 or 2 weeks. This is the same even if they’re having more than 1 child at a time, for example twins. – This now can be taken anytime but must end within 52 weeks after birth date and can now be split into 2 separate weeks as well.

What are the examples of circumstances which can affect Statutory Paternity Pay?

The Gov.UK website has an extensive list sharing what happens in each circumstance from a break in employment to if the employee becomes sick during the eligibility period.

Emergency Payroll Trend – Extended Paternity Leave

The idea of extending paternity leave in the UK is gaining traction amongst employers. Advocates argue that longer paternity leave would promote gender equality and allow fathers to strengthen the bond with their new-borns. One survey found that:

• 46% of employers supported extending Statutory Paternity Pay in theory
• 33% say it should be extended to 4 weeks
• 29% feel it should be extended to 6 weeks or more

Statutory Adoption Pay (SAP) rates for 2024-2025

Statutory Adoption Pay (SAP) mirrors the SMP rate. Adoptive parents receive 90% of their average weekly earnings for the first 6 weeks, followed by 184.03 each week or 90% of average weekly earnings for the remaining 33 eligible weeks. This can start 14 days before the date the child comes to the family.

Employees can take up to 52 weeks’ Statutory Adoption Leave. The first 26 weeks is known as ‘Ordinary Adoption Leave’ and the last 26 weeks as ‘Additional Adoption Leave’.

Why Staying Informed Matters

Understanding statutory pay rates and emerging trends is vital for both employers and employees. For employers, compliance with the latest payroll regulations helps avoid legal pitfalls and helps to build a positive work environment.

Don’t Miss Out – Stay Updated!

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Which Statutory Pay Reforms do employees want the most?

In a recent poll from our marketing manager Hannah Ingram on LinkedIn found the following statistics from respondents.

• 38% would like paternity leave extended to 6 weeks
• 31% would like better maternity pay rights from day 1
• 31% would like to see sick leave at full pay for 7 days

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About this article

This blog was written with the in-depth knowledge of the Talk Staff Payroll team who have extensive knowledge helping small business with payroll as well as multi-national organisations. You can explore payroll case studies here.

Please note that the information in this blog was also created based on the integrity of reputable links at the time of publishing. These blogs should be used for guidance only, you should always check information further, directly with us or online, before taking action as sources may update over time. Talk Staff holds no responsibility for implementation or loss.

 

Last Updated on 5 months by Hannah Ingram