Government freeze stat pay

Government to freeze statutory pay in 2016

In 2016, the Government has made the decision to freeze statutory pay.

Due to be implemented on the 3rd of April 2016, the rates of statutory maternity pay, statutory paternity pay, statutory shared parental pay and statutory adoption pay are frozen as for 2015/16 at £139.58, or 90% of the employee’s average weekly earnings if this figure is less than the statutory rate.

For many employees who have been battling ill health or for those who are planning to start a family in 2016, the news that the Government has proposed no increase in various statutory pay rates, including maternity pay, paternity pay, shared parental pay, adoption pay and sick pay may come as an unwelcome surprise.

Legally, the Government isn’t obliged to raise these payments every year, the rates do normally increase in line with the consumer price index (CPI).  However, in 2015 the CPI actually fell by a small amount and therefore there will be no increase in the amounts paid to those taking sick, maternity, adoption or shared parental leave.

Employers can usually reclaim 92% of employees’ statutory maternity pay, paternity pay, adoption pay and shared parental pay and the rate of statutory sick pay is also to be frozen at the current weekly rate of £88.45.

For employers this will mean that their contributions to those of maternity or sick leave will not increase next year and not place further strain on budgets as having staff off work for prolonged periods of time can often be costly due to lack of productivity.

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Filed Under: Employers, Legal Updates

Emma Bonfiglio

About the author, Emma Bonfiglio

Managing Director at Appointments, Emma has spent 15 years building up a stellar reputation for commercial recruitment excellence across a variety of industries and sectors. There’s no staffing challenge Emma hasn’t encountered and her insight into the recruitment landscape has assisted countless clients achieve their goals over the years.

Specialising in the legislative and procedural side of business operations and through her extensive knowledge and continual training, Emma has a wealth of legal and contractual recruitment knowledge to help advise and support organisations of any size and in any industry.