Statutory maternity, adoption, paternity, shared parental and sick pay to rise from April 2017

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 2017/18. 

The proposed revised rates are as follows:

  • The standard weekly rates of SMP, SAP, SPP and ShPP will increase from £139.58 to £140.98 – it is assumed this will be for payment weeks commencing on or after Sunday, 2 April 2017. The prescribed weekly rate of maternity allowance (MA) will also increase from £139.58 to £140.98.
  • The weekly rate of SSP will increase from £88.45 to £89.35 from 6 April 2017.
  • The earnings threshold, below which employees are not entitled to SMP, SAP, SPP, ShPP and SSP, will increase from £112 to £113 per week from 6 April 2017.

The rate increases reflect a 1% increase in the consumer price index (CPI) in the year to September 2016 and will be the first increases seen since April 2015. This is because, although the rates normally increase each year in line with the CPI, a 0.1% fall in the CPI in the year to September 2015 meant that there were no rate increases in April 2016.

These rates are subject to Parliamentary approval, so changes are possible, but unlikely.

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