Frequently Asked Questions: Pay Amounts

Clients frequently ask questions such as “How much is the Living Wage?” or “How much Statutory Pay am I due?”, so here is a quick summary of the amounts that you may be entitled to. As always, if you require any help or clarification, we are only to happy to assist you. Contact us at any time during office hours on Monday to Friday, or leave a message at other times.

National Minimum or Living Wage

For workers aged 25 or over, the National Living Wage hourly rate is £7.20. The National Minimum Wage hourly rate is £6.70 for those aged 21 and over, £5.30 for workers aged 18 to 20, and it is £3.87 for those aged 16 to 17 years old. Apprentices under the age of 19 or 19 and over who are in their first year of the apprenticeship can expect a minimum wage of £3.30 per hour.

Redundancy Pay

The Pay rate is 0.5 week’s pay for each year of service for those employees who are under 22 years old (1 week’s pay is calculated at £479 or the weekly amount if it is less). For those employees who are between 22 and 40 years old, there is 1 week’s pay for each year of service. Finally, for those employees who are aged 41 or older, they will receive 1.5 week’s pay for each year of service.

Statutory Pay

With regard to Maternity and Adoption pay – the SMP/SAP lasts for 39 weeks. For the first 6 weeks of SMP 90% of the employee’s average weekly earnings are payable. For the remainder of the SMP/SAP the rate is £139.58 or 90% of average weekly earnings (whichever is less). SSP (Sickness Pay) is £88.45 per week, subject to the employees meeting the criteria.

 

(Figures correct at June 2016)

 

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