CIPP Payroll: need to know 2019-20

Proposed statutory pay rates from April 2020 23 January 2020

We are still awaiting official confirmation of what the statutory payment rates for the tax year 2020-21 will be, but the proposed figures have been in circulation for a while now, so it would be advisable for payroll professionals to familiarise themselves with what they are potentially going to be.

The rates are still subject to parliamentary approval, but it is anticipated that the rates below will be approved and implemented from April 2020.

Statutory Payments

2020-21

Statutory Maternity Pay (SMP)

First 6 weeks

90% of AWE

lesser of 90% of AWE or £151.20

Further 33 weeks

Statutory Adoption Pay (SAP)

First 6 weeks

90% of AWE

lesser of 90% of AWE or £151.20

Further 33 weeks

Statutory Paternity Pay (SPP)

lesser of 90% of AWE or £151.20

2 weeks

Shared Parental Leave and Pay (ShPP)

Maximum of 37 weeks (35 weeks for factory workers)

lesser of 90% of AWE or £151.20

*Proposed*

Statutory Parental Bereavement Leave (SPBP) -

lesser of 90% of AWE or £151.20

2 weeks

Employers can recover 92% of SMP, SAP, SPP and ShPP paid. Small employers (defined as those with less than £45,000 gross NICs pa) are entitled to recover 103% (100% plus 3% compensation)

Statutory Sick Pay (SSP)

Standard weekly rate

£95.85

Since 6 April 2016, no recovery of SSP has been allowable

As soon as the proposed figures are officially confirmed, the CIPP will update its members via News Online and update all relevant guidance material in due course.

The Chartered Institute of Payroll Professionals

Payroll: need to know

cipp.org.uk

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