Following new legislation, the current age limits of 16
and 65 on entitlement to Statutory Payments will be removed
from the 1st October 2006.
This change has now been subject to
parliamentary approval and complies with a recent EC
ruling on age discrimination.
What effect will this legislation have on my
payroll?
Statutory Sick Pay (SSP)
The main effect of the new legislation will be on SSP
payments. From the 1st October employers are
legally obliged to pay SSP to any employees under the age of
16 or over the age of 65, providing they meet all other
existing criteria.
Statutory Maternity / Paternity Pay (SMP /
SPP)
The change in legislation also covers payment of SMP and SPP,
although it is unlikely that many employers will be affected by
this. From the 1st October employers will be responsible
for payment of SMP / SPP to all age groups providing
all other existing criteria are met.
Note: For the employee to qualify for
payment the Qualifying week of the pregnancy must be on or after
the 1st October, which means the Expected week of Childbirth (EWC)
would be on or after the 14th January 2007.
Statutory Adoption Pay (SAP)
SAP is unaffected by this change as the lower
age limit to adopt a child remains at 21.
Has IRIS PAYE-Master been amended to
reflect these changes?
As the final rules for the transition have
only just been confirmed, IRIS PAYE-Master could not be
altered to take into account all of the changes. These will be
covered in the year end Release. IRIS PAYE-Master will not
start to pay until April 2007 so any SSP due after 1st October 2006
until April 2007 will have to be manually adjusted.
Are NI contributions affected?
These changes do not alter the position for
National Insurance Contributions. These remain payable
between the ages of 16 and State Pension age, which is currently 60
for a woman and 65 for a man. The state pension age will be
aligned at 65 for both men and women over a ten-year period ending
in 2020.
If you have any questions on this
please contact IRIS support on 0844 815 5661 or email payroll@iris.co.uk
