The new rates for statutory maternity pay, statutory sick pay, and various other benefits, have just been announced by the Government. The new rate increases will apply from April 2025.
New Rates: Statutory Maternity Pay, Paternity Pay, Shared Parental Pay, Adoption Pay, and Parental Bereavement Pay
Family Friendly Payments - New Rates
The increased rates for Statutory Maternity Pay, Statutory Paternity Pay, Statutory Shared Parental Pay, Statutory Adoption Pay, and Statutory Parental Bereavement Pay, will take effect on the 6th April 2025, and are as follows:-
- Statutory maternity pay – those who qualify are entitled to receive it for 39 weeks at a rate of 90% of their gross weekly pay per week, subject to a maximum of £187.18 per week (up from £184.03 per week) after the first 6 weeks.
- Statutory Paternity Pay – the smaller of £187.18 per week (up from £184.03 per week) or 90 per cent of their average weekly earnings per week
- Statutory Shared Parental Pay – the smaller of £187.18 per week (up from £184.03 per week) or 90 per cent of their average weekly earnings per week
- Statutory Adoption Pay – those who qualify are entitled to receive it for 39 weeks at a rate of 90% of their gross weekly pay per week, subject to a maximum of £187.18 per week (up from £184.03 per week) after the first 6 weeks.
- Statutory Parental Bereavement Pay – the smaller of £187.18 per week (up from £184.03 per week) or 90 per cent of their average weekly earnings per week
Earnings Threshold
The average gross weekly earnings required to qualify for Statutory Maternity Pay and the other family friendly payments will increase from £123.00 or more per week, to 125.00 or more per week.
Increase In Statutory Sick Pay
From the 6th April 2025, statutory sick pay (SSP) will increase from £116.75 per week to £118.75 per week
The average gross weekly earnings required to qualify for SSP will increase from £123.00 or more per week, to 125.00 or more per week, and therefore matches the earnings threshold for Statutory Maternity Pay, Statutory Paternity Pay, Statutory Adoption Pay, Statutory Shared Parental Pay, and Statutory Parental Bereavement Pay.
Maternity Allowance & Statutory Maternity Pay
Current Rate
In terms of Maternity Allowance, currently where an employee earns less than £123.00 per week on average (i.e. the earnings threshold for Statutory Maternity Pay), but was employed for 26 of the 66 previous weeks earning at least £30 per week (averaged over any 13 week period during the said 66 weeks), then they are entitled to Maternity Allowance for 39 weeks of the smaller of £184.03 or 90 per cent of their average gross weekly earnings per week.
New Rate
Maternity Allowance will also increase from the 6th April 2025. Where an employee earns less than £125.00 per week on average, but was employed for 26 of the 66 previous weeks earning at least £30 per week (averaged over any 13 week period during the said 66 weeks), then they will be entitled to Maternity Allowance for 39 weeks of the smaller of £187.18 or 90 per cent of their average gross weekly earnings per week.
Other Rate Rises
Increases in attendance allowance and the state pension were also announced at the same time.
The Chancellor of the Exchequer also recently announced in the 2024 Autumn Budget on the 30th October 2024, that the National Living Wage and the National Minimum Wage will increase from the 1st April 2025.
National Living Wage / National Minimum Wage - New Rates
The new rates for the National Living Wage and the National Minimum Wage that will apply from the 1st April 2025 are as follows:-
- For workers aged 21 and over (i.e. the National Living Wage), the rate will increase by £0.77 per hour (6.7%) from £11.44 per hour to £12.21 per hour
- For workers aged 18-20 inclusive, the rate will increase by £1.40 per hour (16.3%) from £8.60 per hour to £10.00 per hour
- For workers aged 16-17 inclusive, the rate will increase by £1.15 per hour (18.0%) from £6.40 per hour to £7.55 per hour
- The apprentice rate will increase by £1.15 per hour (18.0%) from £6.40 per hour to £7.55 per hour
- The daily rate for the accommodation offset will increase by £0.67 (6.7%) from £9.99 to £10.66
