new rates for statutory maternity, paternity and adoption pay from April 2010

The new rates of statutory maternity pay (SMP), statutory paternity pay (SPP) and statutory adoption pay (SAP) have been announced to take affect in April. For payment weeks starting on or after 4 April 2010, the standard rate of SMP, SPP and SAP, known as the prescribed rate, rises from £123.06 per week to £124.88 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. The first six weeks are paid at 90% of earnings. SPP applies for up to two weeks and SAP for up to 39 weeks, both at the prescribed rate or 90% of earnings, whichever is the lower.

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 2010 the LEL will rise from £95 per week to £97 per week.

Statutory Sick Pay (SSP) will remain £79.15 per week for 2010/11. The new rates of SMP, SPP, SAP and SSP have yet to be laid before Parliament.

Please find on our website publications page our 2010 Handy Fact Card, which contains these and other useful employment law facts and figures.

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For further information on any of the issues covered in the above publication, you can contact a member of our Employment law team based in Southampton, Oxford and London or alternatively email us at employmentinfo@bllaw.co.uk.