Statutory pay rates likely to rise in 2021, but not by much

Statutory parental pay is likely to rise next year under Government proposals, but by less than usual due to Covid.

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The Government has announced its proposed rates for statutory maternity, paternity, adoption, parental bereavement and shared parental payments from next April.

The proposal is for rates for 2021/22 for statutory maternity, paternity, adoption, parental bereavement and shared parental pay to increase by 77p a week, up from £151.20 to £151.97. Statutory sick pay (SSP) is also proposed to increase by 50p a week – up from £95.85 to £96.35 per week.

Eligibility criteria are also likely to change, with average earnings – currently £118 a week for SMP – likely to increase.

It is thought the low increase rate is a direct result of the coronavirus pandemic.