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Statutory rate changes effective April 2017

May 04, 2017

In the UK, the statutory payments for employers have increased.

On 2 April, 2017, Statutory Maternity, Paternity, Adoption and Shared Parental Leave rates all increased from £139.58 to £140.98.

On 6 April, 2017, Statutory Sick Pay increased from £88.45 to £89.35. The Apprentice Levy also came into force. Employers with an annual payroll of more than £3 million will be required to pay a 0.5% levy on their total pay bill.

Employers that dismiss employees for redundancy must pay those with two years’ service an amount based on the employee’s weekly pay, length of service and age. The weekly pay is subject to a maximum amount which, from 6 April, 2017 becomes £489,
increasing from £479. This means that the top award of statutory redundancy pay also increases to £14,670 from £14,370. 

The Unfair Dismissal award will be capped at £80,541 (previously £78,962).

The guarantee payment for lay off periods will now be £27 per day (previously £26). 

The new rates are set out in the Employment Rights (Increase of Limits) Order 2017, which came into force on 6 April, 2017.

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