Today is the 6th April and the new tax year has arrived. With this comes the new statutory payment rates for 2021/2. If you pay your employees minimum wage or you have anyone who is entitled to statutory leave, its important to note the following changes.
Statutory payment rates – Minimum Wage
The main thing to note with this year’s minimum wage is a change to the Living Wage entry point. In 2020/1, you had to be age 25 to qualify for the Living Wage. In 2021/2, this has been lowered to 23. So if you are employing a 23 year old, the minimum wage has increased from £8.20 to £8.91, a rise of 8.7%. The apprentice rate has also been tweaked. Whereas before it was for the first year of an apprenticeship, now it is for all years where studying takes place before the age of 19. So a school leaver at 16 could complete 3 full years at the apprentice rate. For the full table, please read below.
Statutory payment rates – Statutory leave
Statutory payment rates have also increased from today. We’ve summarised the fairly minor impact below. It’s worth noting that all statutory payments (with the exception of Statutory Sick Pay) can be reclaimed from HMRC. The only exception to SSP remains the 2 week entitlement should the reason for sickness be Covid-19 related.
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