The Government has announced new rates for a number of family-friendly payments for the 2022 – 2023 tax year, including in respect of:
- Statutory Maternity Pay;
- Statutory Paternity Pay;
- Statutory Adoption Pay;
- Statutory Shared Parental Pay;
- Statutory Parental Bereavement Pay;
- Maternity Allowance; and
- Statutory Sick
According to the Department of Work and Pensions, the new rates for the tax year 2022-2023 will come into effect on 11 April 2022, and will change as follows:
- the standard rate for Statutory Maternity Pay and Statutory Adoption Pay (the rate which applies after the first 6 weeks of leave) will increase from £151.97 to £156.66 per week (or be set at 90% of the employee’s weekly earnings, if that amount is lower);
- the rate for Statutory Paternity Pay, Statutory Shared Parental Pay and Statutory Parental Bereavement Pay will also increase from £151.97 to £156.66 per week (or be set at 90% of the employee’s weekly earnings if that amount is lower);
- the rate for Maternity Allowance will increase from £151.97 to £156.66 per week (or be set at 90% of the individual’s weekly earnings if that amount is lower);
- the rate of Statutory Sick Pay will increase from £96.35 to £99.35 per week;
- the amount of the weekly lower earnings limit that applies to National Insurance contributions, below which employees are not entitled to Statutory Maternity Pay, Statutory Paternity Pay, Statutory Adoption Pay, Statutory Shared Parental Pay and Statutory Parental Bereavement Pay (but remain entitled to Maternity Allowance) will increase from £120 to £123.
Employers should review now whether they have any employees who are likely to be entitled to these payments after 11 April 2022, to make sure that those employees are paid correctly.
For more information on this article, please contact Keeley Parkes or Charles Pallot in our Employment team.
