Payment Entitlements – Quick Reference Guide

Set out below is a quick reference quick to various payment entitlements.

Statutory sick pay

An employee can receive statutory sick pay for a maximum of 28 weeks at the rate of £92.05 per week. The employee’s average weekly earnings must be equal to or more than the lower earnings limit.

Statutory maternity pay

An employee can receive statutory maternity pay (SMP) for a maximum of 39 weeks. The employee’s average weekly earnings must be equal to or more than the lower earnings limit.

You are eligible if you are an employee (not a worker) and give the correct notice (at least 15 weeks before the due date, notice to the employer of the due date and when to start maternity leave).

The first six weeks of payment
90% of the employee’s average weekly earnings

The next 33 weeks of payment
£145.18 per week (or 90% of her average weekly earnings if this figure is less than £145.18

Statutory paternity pay

An employee can receive statutory paternity pay for either one week or two consecutive weeks. The employee’s average weekly earnings must be equal to or more than the lower earnings limit.

See eligibility criteria here.

One or two weeks statutory paternity pay
£145.18 (or 90% of average weekly earnings if this figure is less than £145.18

Statutory adoption pay

An employee can receive statutory adoption pay for a maximum of 39 weeks. The employee’s average weekly earnings must be equal to or more than the lower earnings limit.

The first six weeks of payment
90% of the employee’s average weekly earnings

National insurance lower earnings limit

In order to be entitled to statutory sick pay, maternity, paternity, shared parental pay or adoption pay an employee must have average weekly earnings equal to or more than the lower earnings limit for national insurance contributions purposes.

Tax Year Lower Earnings Limit
2018/19 £116
2017-18 £113
2016/17 £112
2015/16 £112
2014/15 £111
2013/14 £109
2012/13 £107
2011/12 £102

 

National minimum wage

The minimum hourly amount that every worker is entitled to be paid. There are different levels, depending on the worker’s age.

Categories of Worker Previous Rate
effective 1 April 2017 – 31 March 2018
Current Rate
effective 1 April 2018
Rate for workers aged 25 and over (national living wage) £7.50 per hour £7.83 per hour
Rate for workers aged 21-24 £7.05 per hour £7.38 per hour
Development rate for workers aged 18-20 inclusive £5.60 per hour £5.90 per hour
Rate for workers aged 16-17 inclusive £4.05 per hour £4.20 per hour
Rate for apprentices who are under 19 or aged 19 and over but in the first year of their apprenticeship £3.50 per hour £3.70 per hour

 

Guarantee payments

An employee who is not provided with work throughout a day or shift on which he or she is normally required to work will be entitled to a guarantee payment. The amount payable is set out below.

Amount payable in respect of a workless day Limit on entitlement
£28 or a normal day’s pay – whichever is the lesser of the two amounts up to five days’ pay in any three-month period Up to five days’ pay in any three-month period

 

Disclaimer:

This blog is for information purposes only. Nothing should be relied upon as a substitute for legal advice and nothing written should be construed as legal advice or perceived as creating a lawyer-client relationship.

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