Updated Statutory Rates - Effective 1 April 2025:
- Statutory Sick Pay (SSP): The weekly rate will increase from £116.75 to £118.75.
- Statutory Maternity Pay (SMP): The standard weekly rate will rise from £184.03 to £187.18.
- Statutory Paternity Pay (SPP): The weekly rate will increase from £184.03 to £187.18.
- Statutory Adoption Pay (SAP): The weekly rate will be adjusted from £184.03 to £187.18..
- Statutory Shared Parental Pay (ShPP): The weekly rate will increase from £184.03 to £187.18.
Additional Changes on the Horizon:
Beyond these rate increases, significant reforms to Statutory Sick Pay are underway. These changes are currently making their way through Parliament and the Department for Communities has confirmed we will retain parity with Mainland UK:
- Removal of the Lower Earnings Limit: Currently, employees must earn at least £123 per week to qualify for SSP (rising to £125 per week from 1 April 2025). The proposed changes will eliminate this threshold, extending SSP eligibility to all employees, regardless of their earnings.
- Abolition of the Three-Day Waiting Period: At present, SSP is payable from the fourth consecutive day of sickness absence. The upcoming reforms aim to remove this waiting period, making SSP payable from the first day of illness.
Why Does This Matter?
The increase in statutory rates will have financial implications for employers. It could mean you’ll have more staff eligible for sick pay than before. It's essential to budget accordingly to accommodate these higher payments. Organisations which operate with Statutory Sick Pay will need to review and update their internal policies to reflect the forthcoming eligibility criteria. Communicating these changes to staff will ensure they are informed about their entitlements, fostering a supportive workplace environment.
While the exact implementation date for the SSP reforms has not been confirmed, the government has committed to providing ample notice to employers. At NICVA, we are closely monitoring these developments and will keep you informed as more information becomes available.
