Statutory Pay Rates for ‘Family Leave’ : From 4 April 2021
Employees who are currently on, or will be taking, the following types of leave:
- Shared Parental
- Parental Bereavement
will receive a small increase from April 2021. They will receive £151.97 per week for the duration of their leave, (except for those on maternity and adoption leave who will receive 90% of their earnings for the first 6 weeks of leave). The current weekly rate is £151.20.
Employees must now receive details of all payments that they may be entitled to within their contract of employment (or Statement of Terms and Particulars of Employment). Those payments would include reference to any paid leave (as above) that may become applicable to the employee throughout their service. Employees need to know whether they will be paid the ‘statutory rate’ or above. The employer does not need to state exactly how much the statutory rate is for that year.
Businesses must therefore make sure that they are using an up-to-date contract of employment and that they have the correct policy documentation in place for any staff that they recruit.
Statutory Sick Pay : From 6 April 2021
The rate of Statutory Sick Pay will increase to £96.35 in April 2021.
This will be the rate of pay that can be paid for to members of staff who are self isolating under the Covid 19 rules. Many employers will chose to pay at the full pay rate where they can afford to do so.
Redundancy Pay : Changes from 6 April 2021
A ‘weeks pay’ for the purpose of calculating redundancy payments rises to a cap of £544 per week where the termination date is after 6 April 2021. The termination date means that date that the employment came to an end if the employee is being paid ‘PILON’ or the employees last day of service – whichever is the latter.
Redundancy calculations can be worked out easily and quickly using the governments online calculator here : https://www.gov.uk/calculate-your-redundancy-pay
Remember to pay redundancy notice pay (if the employee is not working their notice but being paid ‘PILON’ instead) at the employees full rate of pay.
Employers cannot claim for a furlough payment for employees during their notice period but must pay them at the full pay rate.
Mileage Rates for 2021
Mileage rates for those using their own vehicles for work remain unchanged at 45p for the first 10,000 miles and 25p thereafter in order to claim the maximum tax free benefit. Employers may choose to pay their employees less than the maximum rate.
Those using their electric vehicle for work purposes may be paid an Advisory Electricity Rate for Fully Electric Cars of 4p per mile.
Businesses are advised to speak to their tax advisor if they are unsure of the rules around paying mileage to employees.