Statutory Pay, Minimum Wage and Deduction Thresholds 2024-25
- Personal Allowance is £12,570 for the year. Employees can earn £1,048 monthly or £242 weekly free of tax
- The standard tax code is 1257L
- 20% tax is due on earnings between £12,571 and £37,700 per year
- 40% tax is due on earnings between £37,701 and £125,140 per year
- 45% tax is due on earnings in excess of £125,140 per year
- Employer National Insurance contributions at 13.8% are due on employee's earnings over £9,100 per annum, £758 per month or £175 per week
- No Employer NI contributions are due on earnings of apprentices under 25, employees aged under 21, or veterans of the Armed Forces in the first 12 months of their civilian employment
- Employee National Insurance contributions at 8% are due on their earnings over £12,570 per annum, £1,048 per month or £242 per week
- Employment Allowance of up to £5,000 per annum is available to eligible employers to reduce their Employers National Insurance liability.
- Statutory Sick Pay (SSP) is £116.75 per week. The amount due to the employee is based on the number of working days in the week.
- Statutory Maternity Pay (SMP), Statutory Paternity Pay (SPP), Statutory Adoption Pay (SAP), Statutory Shared Parental Pay (ShPP) and Statutory Parental Bereavement Pay (SPBP) is 90% of the employee's average weekly earnings for the first 6 weeks followed by £184.03 per week or 90% of the employees average weekly earnings (whichever is the lower)
- Employers can recover 92% of Statutory payments (excluding SSP) if Class 1 NICs for the previous tax year are £45,000 or above but can recover 103% if they are below £45,000 for the previous tax year.
- Age 21+ - £11.44 per hour
- Age 18-20 - £8.60 per hour
- Age under 18 - £6.40 per hour
- Apprentice under 19 or over 19 in this first year of apprenticeship - £6.40 per hour
