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Increase in statutory maternity, paternity, adoption, shared parental and sick pay

When going on maternity leave, employee is entitled to receive 90% of their normal weekly earnings for 6 weeks. For the remaining 33 weeks of maternity leave, this amount drops to either the ‘prescribed rate’ or 90% of their normal weekly earnings, whichever is lower.

The ‘prescribed rate’ is currently set up £140.98, but will be increasing to £145.18 on 1 April 2018 (or 9 April 2018 for maternity allowance). Where the employee's SMP period straddles two tax years, the prescribed rate of SMP increases from the week (measured from Sunday to Saturday) in which 6 April falls.

This increased rate will also apply to those receiving statutory paternity pay, statutory adoption pay, maternity allowance, and shared parental pay.

From 6 April 2018, the weekly rate of statutory sick pay will be £92.05 (up from £89.35).

CONTACT CHRIS

If you would like more information or advice relating to this article or an Employment law matter, please do not hesitate to contact Chris Cook on 01727 798089.

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