2025/26 Statutory Payment Rates Announced: Key Updates for Employers and Employees

The UK Government has announced the statutory payment rates for the 2025/26 tax year, effective from 6 April 2025. These updates encompass several key benefits, including Statutory Maternity Pay (SMP), Statutory Adoption Pay (SAP), Statutory Paternity Pay (SPP), Statutory Shared Parental Pay (ShPP), Statutory Parental Bereavement Pay (SPBP), and Statutory Sick Pay (SSP). It is essential for employers and employees to be aware of these changes to ensure compliance and accurate financial planning.

Statutory Maternity Pay (SMP) and Statutory Adoption Pay (SAP):

Both SMP and SAP are payable for up to 39 weeks and are structured as follows:

• First 6 weeks: 90% of the employee's average weekly earnings (AWE) before tax.

• Remaining 33 weeks: The lower of £187.18 per week or 90% of the employee's AWE.

To qualify, employees must have average weekly earnings of at least £125.00.

Statutory Paternity Pay (SPP):

SPP is available to eligible employees for up to two weeks and is paid at the lower of £187.18 per week or 90% of the employee's AWE. The qualifying earnings threshold is £125.00 per week.

Statutory Shared Parental Pay (ShPP):

ShPP allows parents to share up to 37 weeks of pay, with each week paid at the lower of £187.18 or 90% of the employee's AWE. Eligibility requires average weekly earnings of at least £125.00.

Statutory Parental Bereavement Pay (SPBP):

SPBP provides support for bereaved parents, offering up to two weeks of leave paid at £187.18 per week or 90% of the employee's AWE, whichever is lower. The earnings threshold is £125.00 per week.

Employer Reimbursement:

Employers can recover a portion of the statutory payments:

• Standard Recovery Rate: 92% of the payments made.

• Small Employers' Relief: Employers with total Class 1 National Insurance contributions of £45,000 or less in the previous tax year can reclaim 103% of the payments, covering the full amount plus an additional 3%.

Statutory Sick Pay (SSP):

SSP is payable to eligible employees at a rate of £118.75 per week. The qualifying earnings threshold is £125.00 per week.

Employers should update their payroll systems to reflect these new rates and ensure all staff are informed about their entitlements. Staying informed about these changes is crucial for compliance and effective financial planning.

For detailed information, refer to the official government publication: Benefit and pension rates 2025 to 2026 - GOV.UK