The Government has published the proposed statutory rates for Statutory Maternity Pay (SMP), Statutory Paternity Pay (SPP), Shared Parental Pay (ShPP) and Statutory Adoption Pay (SAP), which come into effect on 1 April 2021. The rates normally increase each April in line with the consumer price index (CPI). To be entitled to these statutory payments, the employee’s average earnings must be equal to or more than the lower earnings limit.
From April 2021, the National Living Wage (NLW) will be the statutory minimum wage for workers aged 23 and over. It currently applies to workers aged 25 and over. The reduction in the NLW age threshold follows a review of the structure of the National Minimum Wage youth rates and recommendations made by the LPC in autumn 2019. The threshold will further reduce to 21 by 2024.