New Statutory Pay Rates For Maternity, Paternity, Adoption, Sick and Shared Parental Pay Rates
Increases in statutory pay rates for a range of staff conditions have been announced by the government. They will of course affect domestic and household staff and will come into effect from April 2018.
The new statutory rates are for maternity pay, paternity pay, shared parental pay, adoption pay and sick pay.
The current weekly rate of statutory maternity pay is £140.98, or 90% of the employee’s average weekly earnings if this figure is less than the statutory rate.
The rate of statutory maternity pay will rise to £145.18 from April 2018. The increase normally occurs on the first Sunday in April, which in 2018 is 1 April.
Rates of statutory paternity pay and statutory shared parental pay will also see an increase from £140.98 to £145.18 (or 90% of the employee’s average weekly earnings if this figure is less than the statutory rate).
The rate of statutory adoption pay will increase from £140.98 to £145.18.
To sum up: from 1 April 2018, statutory adoption pay is payable at 90% of the employee’s average weekly earnings for the first six weeks, with the remainder of the adoption pay period at the rate of £145.18, or 90% of average weekly earnings if this is less than £145.18.
The rates normally increase each April in line with the consumer price index (CPI). As always in such matters, we suggest you consult an appropriate professional before initiating any changes in pay structure.
The Graham Agency, keeping you informed