Government announces statutory pay rate increases for 2020/21

The Department for Work and Pensions has published the government’s proposed annual increases to certain statutory payments.

These rates are expected to apply from 5 April 2020. Although, technically, the figures remain subject to change, in practice changes are not usually made at this stage. The publication therefore provides HR professionals, employers and employees a fairly firm indication of the likely increases, enabling budgets to be set accordingly.

  Current Rate Proposed 2020/21 Rate
Weekly rate of Statutory Sick Pay (SSP) £94.25 £95.85
Weekly rate of Statutory Maternity Pay (SMP) £146.81 £151.20
Weekly rate of Statutory Paternity Pay (SPP) £146.81 £151.20
Weekly rate of Statutory Shared Parental Pay (ShPP) £146.81 £151.20
Weekly rate of Statutory Adoption Pay (SAP) £146.81 £151.20

The draft National Minimum Wage (Amendment) Regulations 2020 have also been put forward. The draft regulations will come into force on 1 April 2020 and increase the hourly rates of the national living wage and national minimum wage. These increases are shown below.

  Current Rate Proposed 2020/21 Rate
National Living Wage for workers aged 25 and over £8.21 £8.72
National Minimum Wage for 21 to 24-year-olds £7.70 £8.20
National Minimum Wage for 18 to 20-year-olds £6.15 £6.45
National Minimum Wage for 16 to 17-year-olds £4.35 £4.55
Apprentice rate for those under 19, or in the first year of an apprenticeship £3.90 £4.15

Also from 1 April 2020, the accommodation offset allowance for minimum wage purposes will increase from £7.55 to £8.20 per day.

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Lisa Watson

About Lisa Watson

Lisa has a wealth of experience advising on the full range of transactional and standalone employment matters, including international projects, all aspects of TUPE, mergers and acquisitions, team moves, large-scale redundancies, reorganizations and restructures (including collective consultation), and day-to-day employee issues and documentation. On the contentious side, she has overseen numerous employment tribunal claims and disputes (including unfair dismissal, wrongful dismissal, discrimination and holiday pay actions).

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