new statutory maternity, paternity, adoption and sick pay
rates
The new rates of Statutory Maternity Pay (SMP), Statutory
Adoption Pay (SAP), and Statutory Paternity Pay (both Ordinary and
Additional – OSPP and ASPP) have been announced. The standard rate
of SMP, SPP and SAP, known as the prescribed rate, will rise from
£128.73 per week to £135.45 per week. For SMP, this rate (or 90% of
earnings, whichever is the lower) applies for up to 33 weeks after
the first six weeks of leave, which are paid at 90% of
earnings. SAP is paid for up to 39 weeks at the prescribed rate (or
90% of earnings, whichever is the lower).
Ordinary Statutory Paternity Pay (OSPP) applies for up
to two weeks whilst Additional Statutory Paternity Pay (ASPP)
applies for the unexpired period of the mother/adopter's right to
SMP or SAP and is also at the prescribed rate (or 90% of earnings,
whichever is the lower). The Government announcement specifies that
these rates, which are part of a long list of uprated benefits,
will apply from 9 April 2012, but in our view the rates for SMP,
SPP and SAP are likely to apply from 1 April 2012. The relevant
legislation has not yet been laid before Parliament.
In order to be eligible for SMP, SAP, and SPP, employees must
earn at least the National Insurance Lower Earnings Limit (LEL) in
the eight weeks running up to and including the 15th week before
the baby is due or, in the case of adoption, the eight weeks before
the notification of the adoption match is given. From 6 April 2012
the LEL will rise from £102 per week to £107 per week.
Statutory Sick Pay (SSP) this year will rise from £81.60 to
£85.85 per week.
Our 2012 Handy Fact Card, which contains these and other useful
employment law facts and figures, will be published and sent out at
the end of January.
