Minimum wage and statutory payments to rise from April 2017

Statutory weekly payments for parents and sick pay will go up from April 2017, as shown below. The increase of 1% reflects the annual increase in the consumer price index in the year to September 2016.

This is the first increase since April 2015. These payments didn’t change in April 2016 because the index fell by 0.1% in the year to September 2015.

To qualify for these statutory payments, an employee’s average earnings must be equal to or higher than the lower earnings limit.

Statutory maternity, paternity, adoption, and shared parental pay

Current weekly rate – £139.58

From April 2017 – £140.98 (from 2 April)

Statutory sick pay

Current weekly rate – £88.45

From April 2017 – £89.35 (from 6 April)

Lower earnings limit (required to qualify for the above payments)

Current weekly rate – £112

From April 2017 – £113

The government has published draft regulations to increase national minimum wage rates. The proposed increases are due to take effect from 1 April 2017, as shown below.

Workers aged 25 and above (national living wage)

Current hourly rate – £7.20

From April 2017 – £7.50

Workers aged 21-24 (standard adult rate)

Current hourly rate – £6.95

From April 2017 – £7.05

Workers aged 18-20 (development rate)

Current hourly rate – £5.55

From April 2017 – £5.60

Workers aged 16-17 who aren’t apprentices (young worker’s rate)

Current hourly rate – £4.00

From April 2017 – £4.05

Apprentices (apprenticeship rate)

Current hourly rate – £3.40

From April 2017 – £3.50

Accommodation offset limit (of the national minimum wage)

Current hourly rate – £6.00 (per day)

From April 2017 – £6.40 (per day)

To discuss this article or an other employee benefits and commercial insurance, please call us on 01273 789 979 or send us an ,email.

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