The government has published the proposed statutory rates for maternity pay, paternity pay, shared parental pay, adoption pay and sick pay from April 2020.
Example family-friendly policies
The current weekly rate of statutory maternity pay is £148.68, or 90% of the employee’s average weekly earnings if this figure is less than the statutory rate.
The rate of statutory maternity pay is expected to rise to £151.20 from April 2020. The increase normally occurs on the first Sunday in April, which in 2020 is 5 April.
Also on 5 April 2020, the rates of statutory paternity pay and statutory shared parental pay is expected to go up from £148.68 to £151.20 (or 90% of the employee’s average weekly earnings if this figure is less than the statutory rate).
The rate of statutory adoption pay increases from £148.68 to £151.20.
This would mean that, from 5 April 2020, 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 £151.20, or 90% of average weekly earnings if this is less than £151.20.
The rates normally increase each April in line with the consumer price index (CPI).
Stephen Simpson, principal employment law editor at XpertHR, said: “Employers may have been concerned that the publication of these rates could have been delayed because the government has been busy with the general election and Brexit.
“It is good news for employers that the April 2020 rates have still been published well in advance, which will help HR professionals to plan their budgets for 2020/21, and to prepare amendments to their policies and other documentation on family-friendly benefits for April.”
Example sickness absence policies
The rate of statutory sick pay is also proposed to increase from £94.25 to £95.85 on 6 April 2020.
To be entitled to these statutory payments, the employee’s average earnings must be equal to or more than the lower earnings limit.
However, the lower earnings limit from April 2020 has not yet been published.