New rates for statutory entitlements - what to look out for

The Department for Work and Pensions have released new rates for statutory maternity, paternity, adoption, shared parental leave and sick pay along with the National Minimum Wage/National Living Wage.

The new rates will take effect on 2 April 2023, increasing the current rates by up to 10% compared with the current statutory entitlements. For instance:

• Statutory sick pay will rise to £109.40 per week, up from £99.35 per week.
• Statutory maternity, paternity, adoption, shared parental leave and parental bereavement pay will increase to £172.48 per week, up from £156.66 per week.

However, the weekly earnings threshold a worker must meet to become eligible for statutory parental pay or statutory sick pay will remain at £123 per week.

In addition, the Government have announced the rates of the National Minimum Wage and National Living Wage which will apply from 1 April 2023. The National Living Wage will increase to £10.42, up by 92p with all other rates detailed here.

You must ensure you have updated all relevant payroll to ensure compliance with these new rates from 1 April 2023.