New rates SMP, SPP

What are the proposed new rates?

The Government has published proposed new benefit and pension rates for 2020 to 2021 including in respect of Statutory Maternity Pay (SMP), Statutory Paternity Pay (SPP), Statutory Adoption Pay (SAP), Statutory Shared Parental Pay (SSPP), Maternity Allowance (MA) and Statutory Sick Pay (SSP). The rates of these benefits are normally increased in April each year in line with the Consumer Prices Index. The DWP proposal reveals that in April 2020:

• the standard rate for Statutory Maternity Pay (SMP), ie the rate that applies after the first 6 weeks of pay at 90% of the employee’s normal weekly earnings, will increase from £148.68 to £151.20 per week (or be set at 90% of the employee’s weekly earnings if that amount is lower)
• the standard rate for Statutory Adoption Pay (SAP), ie the rate that applies after the first 6 weeks of pay at 90% of the employee’s normal weekly earnings, will increase from £148.68 to £151.20 per week (or be set at 90% of the employee’s weekly earnings if that amount is lower)
• the rate for Statutory Paternity Pay and Statutory Shared Parental Pay (SPP and SSPP) will increase from £148.68 to £151.20 per week (or be set at 90% of the employee’s weekly earnings if that amount is lower)
• the rate for Maternity Allowance (MA) will increase from £148.68 to £151.20 per week (or be set at 90% of the individual’s weekly earnings if that amount is lower)
• the rate of Statutory Sick Pay (SSP) will increase from £94.25 to £95.85 per week

the amount of the weekly lower earnings limit, that applies to National Insurance contributions, below which employees are not entitled to SMP, SPP, SAP, SSPP and SSP (but remain entitled to Maternity Allowance), and which is currently £118, is yet to be confirmed for 2020–2021