Statutory Family Related Payments – new guidance 24th April 2020
As is becoming a (bad) habit, the Government released more guidance, relating to Furlough Leave and statutory payments, quite late on Friday.
However, it is good news for anyone who will be taking family related leave and entitled to Maternity Pay, Paternity Pay, Shared Parental Pay, Parental Bereavement Pay and Adoption Pay on or after 25th April. These payments are calculated as the average over an 8-week period and there was concern that furloughed employees would therefore be disadvantaged if this referencing period fell during a period of furlough leave where they were receiving a reduced salary.
Pregnant women and new mothers are entitled to take up to 52 weeks of Maternity Leave. Up to 39 weeks are paid. For women who qualify for Statutory Maternity Pay (SMP), this is paid at 90% of usual earnings for the first 6 weeks, followed by 33 weeks at the statutory rate (currently £151.20). Adoption Leave and Statutory Adoption Pay (SAP) are the same.
To be eligible for SMP or SAP, a person’s average weekly earnings must be at least equal to the Lower Earnings Limit (currently £120 per week) over a prescribed 8-week test period. A person’s earnings over this period are also used to determine the earnings-related rate of SMP or SAP for the first 6 weeks.
- Maternity Allowance is a benefit paid to working mothers (including self-employed mothers) who do not qualify for SMP – this is worth up to £151.20 a week for up to 39 weeks. Entitlement to MA, and the rate payable, are determined by reference to 13-weeks earnings in a 66-week test period.
- Statutory Paternity Pay is up to 2 weeks long and is paid at the lower of £151.20 per week, or 90% of average earnings.
- Shared Parental Pay is up to 50 weeks long and is paid at the lower of £151.20 per week, or 90% of average earnings.
- Statutory Parental Bereavement Pay is 2 weeks long and is paid at the lower of £151.20 per week, or 90% of average earnings.
To be eligible for Paternity, Shared Parental and Parental Bereavement Pay, a person’s average weekly earnings need to exceed the Lower Earnings Limit (currently £120 per week) over a prescribed 8-week test period.
This new guidance sets out that the calculation will be based on normal pay rather than furlough leave rates, thus protecting the payments to employees at a very important time and ensures they are not being disadvantaged by being furloughed.
The full guidance is available at:
https://www.gov.uk/government/news/furloughed-workers-to-receive-full-parental-leave-entitlement?utm_source=336a7e60-eabe-4a96-b9c1-ddc2d0fc90c5&utm_medium=email&utm_campaign=govuk-notifications&utm_content=immediate
