Statutory Pay Rates From April 2021

The Government has announced its proposed pay rates for statutory maternity, paternity, adoption, parental bereavement and shared parental payments from April 2021 (policy paper is here).

The rates for 2021/22 for statutory maternity, paternity, adoption, parental bereavement and shared parental pay is set to increase from £151.20 to £151.97 per week. Additionally, the rate of statutory sick pay (SSP) is also set to increase from £95.85 to £96.35 per week.

The average earnings an employee has to earn to receive these payments is also likely to increase; however, it is yet to be announced what these are expected to be.

These increases, while expected, are lower than we have seen in recent years, which is likely to be a direct result of the coronavirus pandemic. Nevertheless, organisations now have time to plan for these, alongside the recently announced increases to the minimum wage, and should start to prepare now.

Family-friendly payments usually increase from the first Sunday in April (set to be 4 April in 2021). SSP usually increases on 6 April; however, it will later be confirmed if this will remain the same this year for all increases.

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