Increased rates for maternity and sick pay

From 8th April 2013 new proposed rates of statutory maternity, paternity, additional paternity, adoption and sick pay have been announced.

They are subject to parliamentary approval, but changes are unlikely. They are as follows:

• Statutory maternity, paternity, additional paternity and adoption pay will all increase to £136.78 per week (from the current rate of £135.45)
• The maternity allowance prescribed rate will also increase to £136.78 (from £135.45) per week
• Statutory sick pay will increase to £86.70 per week (from the current rate of £85.85)
• The weekly lower earnings limit applying to National Insurance contributions (below which employees are not entitled to statutory sick pay, statutory maternity pay, statutory adoption pay or statutory paternity pay, but remain entitled to maternity allowance) will increase to £109 (from the current rate of £107)

Also, from 1 February 2013, new increased compensation limits for employment tribunal claims will come into force as follows:

• Maximum amount of a week's pay (used for calculating a redundancy payment or for various awards including the unfair dismissal basic award): £450 (up from £430)
• Maximum amount of unfair dismissal compensatory award: £74,200 (increased from £72,300)
• Maximum guarantee payment per day: £24.20 (increased from £23.50)

The maximum basic award for unfair dismissal (and statutory redundancy pay) will therefore be £13,500 (up from £12,900) making the maximum total basic and compensatory awards for unfair dismissal £87,700 (up from £85,200).

The new limits apply where the appropriate date (usually the effective date of termination – but not always) is on or after 1 February 2013.