Parental leave pay to be calculated on full pay not furloughed pay

Furloughed workers who go on leave after 25th April will have their parental leave pay calculated based on their full pay not their furloughed pay, the Government has announced.

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The Government has announced that furloughed workers planning to take paid parental or adoption leave will be entitled to pay based on their usual earnings rather than a furloughed pay rate.

Entitlement to Statutory Maternity Pay and other forms of Parental or Adoption Pay are currently calculated through someone’s average earnings over an eight-week assessment period up until the end of the 26th week of pregnancy. For Maternity Allowance, entitlement and the rate payable is also determined by looking at average earnings over a 13-week period.

The statutory instrument laid in Parliament today will ensure workers whose period of family-related pay begins on or after 25th April will be assessed on their usual, full pay.

The changes will ensure those intending to take time off following the birth, adoption or death of a child will not see their entitlement to pay affected as a result of being furloughed in the wake of COVID-19.

Business Minister Paul Scully said: “Maternity and other forms of parental leave are pivotal times in people’s lives, and they should absolutely be protected from the impacts of Covid-19.

“We are supporting workers and businesses in a way never seen before, in response to the unprecedented effects of Covid-19. These measures will ensure those on the Coronavirus Job Retention Scheme continue to receive the parental leave and pay they are entitled to.”

Lords Minister for the Department for Work and Pensions, Baroness Stedman-Scott said:

“At an already challenging time for families, peace of mind that they can rightly take time off and receive their full entitlement will provide much needed reassurance.

“Throughout this health emergency we’ve taken unprecedented steps to help those affected make ends meet, and today’s new measures further extend vital financial support.”