The Department for Work and Pensions (DWP) has published proposed statutory rates for maternity pay, paternity pay, shared parental pay, adoption pay and sick pay for 2018-19.
The new increases will come into force in April 2018. The increase normally occurs on the first Sunday in April, which in 2018 is 1 April. The rates normally increase each April in line with the consumer price index (CPI).
Statutory Maternity Pay, Statutory Paternity Pay, Statutory Shared Parental Pay – ALL currently £140.98 (or 90% of the employee’s average weekly earnings if this figure is less than the statutory rate) will rise to £145.18.
Statutory Adoption Pay rate will also increase by the same amount. This means that, 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.
Expected with effect from 6 April - the rate of Statutory Sick Pay (SSP) will also rise from £89.35 to £92.05. To be entitled to these statutory payments, the employee’s average earnings must be equal to or more than the lower earnings limit. The Lower Earnings Limit is increasing from £113 to £116 in April 2018.
Comment: This early publication of the rates will mean employers can at least plan their budgets for 2018/19 and, if necessary, prepare for amendments to their policies and other documentation re family-friendly benefits for April 2018.