Age restrictions on Statutory Payments
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 2006 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, however few employers are likely to 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 Payroll Professional been amended
to reflect these changes?
The May 2006 update included an amendment to stop warning
messages appearing for Statutory Payments to employees
aged under 16 or over 65. More
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