Government announces proposed statutory maternity pay and sick pay rates for 2017 to 2018

The government has published the proposed benefit and pension rates for 2017 to 2018. It reviews the rates every year to reflect the changes to the consumer price index (CPI). The CPI increased by 1% in the year 2015 to 2016, leading to an increase in statutory rates for 2017 to 2018, as set out below.

  • Maternity, paternity, shared parental and adoption pay: increase from £139.58 to £140.98 per week.
  • Sick pay: increase from £88.45 to £89.35 per week.
  • Lower earnings limit: increase from £112 to £113 per week.

Employees’ average earnings must be in line with, or higher than, the lower earnings limit to trigger their eligibility for these benefits. The above figures are key rates referred to by employers and HR professionals on a daily basis. The new rates will not come into force until April 2017 and might still be subject to change. However, the government’s early publication of its proposed revised figures will give employers and HR professionals an indication of the likely level at which they will be set. This will allow employers and HR professionals to prepare budgets accordingly and to anticipate any necessary amendments to policies in advance.

Subscribe and stay updated
Receive our latest blog posts by email.
Helena Rozman

About Helena Rozman

Helena has experience in acting for both employees and employers covering both contentious and non-contentious work. Helena's experience includes defending Employment Tribunal claims and engaging in settlement negotiations; advising clients on complex disciplinary matters, exit strategies and large restructuring exercises, including TUPE and redundancy; co-ordinating and responding to data subject access requests; advising on the employment implications on business and asset purchases and outsourcing arrangements; project managing and advising clients on multi-jurisdictional projects with our international offices; drafting settlement agreements for exiting employees; advising on the employment aspects of corporate transactions and undertaking due diligence; and reviewing contracts, company handbooks and policies.

Full bio