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

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Unit 21 Portway Business Centre
Old Sarum, Salisbury

t: 01722 341820