| |
Statutory Payment Rates - Statutory Maternity etc. Pay rates for 2008/09
View the next news item for Maternity/Paternity/Adoption Pay & Leave
View the previous news item for Maternity/Paternity/Adoption Pay & Leave
13 December 2007
From the first payment week starting on or after Sunday, 6 April 2008, the standard weekly SMP/SPP/SAP rate of £112.75 is increased by 3.948% and rounded down to £117.18 (subject to parliamentary approval). The daily rate is £16.74 exactly.
As a result of recommendations made by the author, DWP Ministers agreed to set a weekly rate for 2008/09 and future years that is exactly divisible by 7, to avoid the need to round calculations involving the equivalent daily rate. The legislation that governs the annual increase allows some discretion in how the new rate is rounded so it is possible every year for a weekly rate to be set that does not result in a fraction of a penny.
The rates, percentages and thresholds for SMP, SPP and SAP for 2008/09 and the two earlier years are shown in the following Table.
Rates effective from the first payment week starting on or after Sunday
| 1 April 2007
| 6 April 2008
|
| SMP weekly rate for the first 6 weeks
| 90% of average weekly earnings, even if less than
| £112.75
| £117.18
|
SMP weekly rate for up to 33 weeks
SPP weekly rate for up to 2 weeks
SAP weekly rate for up to 39 weeks
| Lower of 90% of weekly earnings and
| £112.75
| £117.18
|
| Percentage of payment recoverable
| 92%
| 92%
|
| Percentage of payment recoverable under Small Employer's Relief
| 100%
| 100%
|
| Percentage of NI compensation recoverable under Small Employer's Relief
| 4½%
| 4½%
|
| Annual NICs threshold for Small Employer's Relief
| £45,000
| £45,000
| | |
Among the qualifying conditions for SMP, SPP and SAP is the requirement that the employee's average earnings over the eight-week relevant period be at least equal to the National Insurance Lower Earnings Limit. This is £90 per week from 6 April 2008. There is no requirement for employees to have paid Class 1 NICs.
...UK Payroll News - Latest
Further information:
Statutory Payment Rates for 2008 - 2009
Proposed Benefit Rates 2008/09
The UK Payroll News is sponsored by HRD & Payroll Solutions
Discuss this news item in the PayPerShop Forum
|
|
|
For Payroll and Human Resource Professionals
