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Statutory maternity, paternity and sick pay rates published for 2020

Posted by Davenport Solicitors Team on January 16, 2020 in Employment Law, Human Resources

Statutory payments, as expected every year in April, are increasing.

The government have recently published the proposed statutory rates for maternity pay, paternity pay, sick pay as well as others such as adoption pay. As is the norm, the payment increases are expected to come into effect on the first Sunday in April, being 5 April 2020.

Statutory maternity pay will increase to £151.20 after the initial six weeks, up from £148.68 the previous year. Statutory paternity pay and statutory adoption pay will also be increasing to the same figure of £151.20 after the initial six weeks.

The qualifying criteria to receive these figures remains unchanged, meaning employees whose weekly earnings are less than this statutory rate will be entitled to 90% of their average weekly earnings instead.

Statutory sick pay increases happen on the first Monday in April, being 6 April 2020. The figure is increasing to £95.85, up from £94.25. For employees entitled to these statutory payments, their average earnings must be equal to or more than the lower earnings limit. We are still waiting for the 2020 lower earnings limit to be published.

Ahead of their introduction in April 2020, it is important that employers take the necessary actions in preparation. This should involve reviewing existing policies as well as working these newly proposed figures into calculations and budgets for the year. It is also important to carefully consider any employees who will be partway through statutory leave at the time of introduction.

Miscalculations can add up over a period of time, especially in larger businesses with multiple employees.

The material contained on this website contains general information only and does not constitute legal or other professional advice and should not be relied upon as such. While every care has been taken in the preparation of the information on this site, readers are advised to seek specific legal advice in relation to any decision or course of action.

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