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The Department for Work & Pensions (DWP) has announced the increased 2011/12 rates for 'Statutory Payments' made by employers, to take effect from April 2011 and which include:

• Statutory Sick Pay (SSP) - up from £79.15 to £81.60 per week
• Statutory Maternity Pay (SMP) - 6 weeks @ 90% of earnings + 33 weeks @ £128.73
• Ordinary Statutory Paternity Pay (OSPP)
• Additional Statutory Paternity Pay (ASPP)
• Statutory Adoption Pay (SAP)

The rates have risen from £79.15 to £81.60 for SSP, and from £124.88 to £128.73 for the others - of course these latter payments may be capped by reference to (90% of) the employee's earnings, depending on the circumstances.

Whilst the Statutory Payment rates are increasing, the amount a 'small employer' can reclaim  - the 'small employers' compensation rate' - is decreasing from 104.5% to 103.%. This is intended to reflect the significant increase in NI thresholds from 2010/11 to 2011/12, so that a lower compensation rate will be needed to offset employers' reduced NI costs when making Statutory Payments.

The rates are yet to be approved by parliament.

For further information, see Statutory Payment Rates