Statutory pay rates guide for 2024-2025
Keeping up with statutory pay rates is essential not only for HR and payroll compliance but also to maintain employee trust.
Keep reading below for the latest statutory pay rates for 2024-2025, plus some emerging trends and answers to some common questions about statutory pay to help you stay ahead in the ever-changing payroll landscape.
Statutory Sick Pay (SSP) rates for 2024-2025
For 2024-2025, Statutory Sick Pay (SSP) is set at £116.75 per week for employees unable to work due to illness. Employers are required to pay SSP for up to 28 weeks.
When does Statutory Sick Pay start?
Employees become eligible for SSP from the fourth day of their sickness absence, including weekends and bank holidays, as long as they meet the following criteria:
- They have an employment contract and have worked under this contract.
- They earn at least £123 per week on average.
- They provide adequate notice and proof of their illness as required.
Your employee handbook should include a clear HR policy on how employees should notify their manager of sick leave, often requiring a phone call or verbal communication rather than an email or text message.
SSP is paid based in line with companies policy or custom and practise. This could be business days (Monday – Friday), calendar days ( Monday to Sunday) or the employee’s regular work schedule. For instance, if business days are used; an employee who is off sick for a full week (Monday – Sunday) would have 3 waiting days and receive 2 days pay at a 5th of £116.75. For any sick pay related enquiries, please reach out to us.
Labour has proposed scrapping the three-day waiting period for SSP in future employment law changes, so it’s essential to stay informed about ongoing payroll legislation updates.
How long is the self-certification process for sick leave?
Employees can self-certify their sickness for up to seven days. After that, a fit note from a GP or qualified healthcare provider is required, which can be in printed or digital format.
Reasons employees may not qualify for Statutory Sick Pay
Employees may not qualify for SSP if:
- They have been off sick for more than 28 weeks.
- They are receiving Statutory Maternity Pay or Maternity Allowance.
- They have a pregnancy-related illness close to the birth period (four weeks before the due date).
- They were in custody or on strike on the first day of their sickness.
- They work outside the EU.
- They received Employment and Support Allowance within 12 weeks of starting or returning to work.
What if an employee isn’t eligible for sick pay?
If an employee is not eligible for SSP, you must inform them in writing, either through an SSP1 form or a letter/email. Employees may still be entitled to other financial support or benefits, so it’s worth helping them explore these options to reduce financial stress during sick leave.
Can you reclaim statutory sick pay from HMRC?
The temporary relief on SSP from HMRC during the pandemic has ended. The Coronavirus Statutory Sick Pay Rebate Scheme closed on March 24, 2022.
Statutory Maternity Pay (SMP) rates for 2024-2025
Statutory Maternity Pay (SMP) is paid for 39 weeks, starting at 90% of the employee’s average weekly earnings for the first six weeks.
For the remaining 33 weeks, the rate is £184.03 per week or 90% of the employee’s average weekly earnings, whichever is lower. Maternity leave itself 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.
- Provide the correct notice and proof of pregnancy.
- Have worked for their employer continuously for at least 26 weeks leading into the ‘qualifying week’—the 15th week before the expected week of childbirth.
Campaign for enhanced Statutory Maternity Pay
There is ongoing advocacy for the government to double maternity pay, especially in light of the cost-of-living crisis. The current 26-week employment requirement before being eligible for pay can also hinder career progression for mothers, potentially contributing to the gender pay gap.
How many employers offer Enhanced Maternity Pay?
Here’s the current breakdown:
- 21% of employers offer 26 weeks of enhanced maternity pay at or near the full rate, followed by 13 weeks at the SMP rate.
- 18% of employers offer between 4 and 13 weeks of enhanced maternity pay at or near the full rate.
- 33% of organisations meet only the statutory minimum requirement.
Should you offer enhanced Maternity Pay as an employee benefit?
Consider the following when deciding whether to offer enhanced maternity pay:
- Business Size and Budget: Enhanced maternity pay is a great benefit if it can be sustained financially without significantly impacting the business.
- Competitive Edge: Consider whether offering enhanced maternity pay would help you stand out in your industry or if it aligns with the norms.
Statutory Paternity Pay (SPP) rates for 2024-2025
For 2024-2025, Statutory Paternity Pay (SPP) is £184.03 per week or 90% of the employee’s average weekly earnings, whichever is lower.
Employees eligible for Statutory Paternity Leave can take either one or two weeks, even if they are having more than one child at a time. This leave can now be split into two separate weeks and must be taken within 52 weeks of the birth.
Circumstances affecting Statutory Paternity Pay
The Gov.UK website provides an extensive list of circumstances that can affect SPP, such as employment breaks or sickness during the eligibility period.
Trend alert: extended Paternity Leave
There is growing support for extending paternity leave in the UK. Advocates argue that longer paternity leave would promote gender equality and strengthen the bond between fathers and their newborns. Recent survey results indicate:
- 46% of employers support extending Statutory Paternity Pay.
- 33% believe it should be extended to four weeks.
- 29% feel it should be extended to six weeks or more.
Statutory Adoption Pay (SAP) rates for 2024-2025
Statutory Adoption Pay (SAP) follows the SMP rate. Adoptive parents receive 90% of their average weekly earnings for the first six weeks, followed by £184.03 per week or 90% of their average weekly earnings for the remaining 33 weeks. This leave can begin 14 days before the child joins the family.
Why staying informed matters
Staying informed about statutory pay rates and trends is essential for employers and employees alike. For employers, compliance with payroll regulations helps avoid legal issues and fosters a positive work environment.
Statutory pay reforms employees want most
In a recent poll conducted by talkstaff, the following preferences emerged:
- 38% want paternity leave extended to six weeks.
- 31% desire better maternity pay rights from day one.
- 31% support full pay for seven days of sick leave.
Need help with statutory pay and payroll?
If you have questions about statutory pay or find payroll processing overwhelming, our responsive team is here to assist you with the latest in payroll legislation. Reach out today to start saving time and reducing administrative hassle with mywage.co
