Statutory pay to rise from April 2018
In a written ministerial statement, the government has announced the proposed new rates for statutory maternity pay (SMP), statutory adoption pay (SAP), statutory paternity pay (SPP), statutory shared parental pay (ShPP) and statutory sick pay (SSP) for tax year 2018/19.
The proposed revised rates are as follows:
- the standard weekly rates of SMP, SAP, SPP and ShPP will increase from £140.98 to £145.18 – it is assumed this will be for paymentweeks commencing on or after Sunday, 1 April 2018. The prescribed weekly rate of maternity allowance (MA) will also increase from £140.98 to £145.18
- the weekly rate of SSP 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.
The rate increases reflect a 3% increase in the consumer price index (CPI) in the year to September 2017.
These rates are subject to Parliamentary approval, so changes are possible, but unlikely.
Source: Department for Work & Pensions | 30-11-2017