Statutory Rates Rise Is Good News For Mums And Dads To Be


Good news for mums and dads to be: the government has announced the proposed new rates for statutory maternity pay (SMP), statutory adoption pay (SAP), statutory paternity pay (SPP) and statutory shared parental pay (ShPP) for tax year 2018/19.

The rates will be rising to £145.18 from April 2018, reflecting the 3% increase in the consumer price index (CPI) in the year to September 2017.

The first six weeks of statutory maternity pay are paid at a rate of 90% of the employee's average weekly earnings and the remaining 33 weeks are paid at the statutory rate (or the 90% rate if it is lower than the statutory rate).

The rates of statutory paternity pay and statutory shared parental pay will also go up to £145.18, or 90% of the employee's average weekly earnings if this figure is less than the statutory rate.

Statutory adoption pay is payable at 90% of the employee's average weekly earnings for the first six weeks (the same as with maternity), 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.

Further to this, other proposed revised rates are as follows:

  • the prescribed weekly rate of maternity allowance (MA) will also increase from £140.98 to £145.18
  • the weekly rate of Statutory Sick Pay will increase from £89.35 to £92.05 from 6 April 2018
  • the earnings threshold, below which employees are not entitled to SMP, SAP, SPP, ShPP and SSP, will increase from £113.00 to £116.00per week from 6 April 2018.

Currently, these new rates are proposals made to the government and are subject to Parliamentary approval, so changes are possible but unlikely. The proposals are normally accepted and this early confirmation will allow organisations to review their current documentation and set in place their plans for the coming financial year.

For further information on maternity, paternity, adoption and shared parental leave please visit the Government website, call us on 01603 620508, or email us using our website contact form. Whether you are an employee or employer, a member of our highly experienced team is ready to answer any questions you may have and help you in any way they can.

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