Opinions and insights from Roythornes' employment team.
Furlough/Parental leave and pay
- AuthorDesley Sherwin
The Government has issued guidance to confirm that workers who have been furloughed under the Coronavirus Job Retention Scheme but who are eligible for and wish to take paid parental or adoption leave on or after 25 April 2020 will not be penalised by receiving pay based on their furlough rate. They will instead be entitled to pay based on their usual earnings, averaged over an 8-week assessment period.
This applies to Maternity Pay, Adoption Pay, Paternity Pay, Parental Bereavement Pay and Shared Parental Pay.
For Maternity Allowance, a 13-week period is used to assess entitlement and the rate.
By way of reminder: -
Statutory Maternity Pay (SMP) and Statutory Adoption Pay (SAP)
- Statutory Maternity Pay (SMP) and Statutory Adoption Pay (SAP) are paid at 90% of usual earnings for the first 6 weeks, followed by 33 weeks at the statutory rate (currently £151.20).
- To be eligible for SMP or SAP, a person’s average weekly earnings must be at least equal to the Lower Earnings Limit (currently £120 per week) over a prescribed 8-week test period. A person’s earnings over this period are also used to determine the earnings-related rate of SMP or SAP for the first 6 weeks.
- Maternity Allowance is a benefit paid to working mothers (including self-employed mothers) who do not qualify for SMP. It is worth up to £151.20 a week for up to 39 weeks.
- Entitlement and the rate payable are determined by reference to 13-weeks earnings in a 66-week test period.
Statutory Paternity Pay and Statutory Parental Bereavement Pay
- Statutory Paternity Pay and Statutory Parental Bereavement Pay are up to 2 weeks long; Shared Parental Pay is up to 50 weeks long. These are paid at the lower of £151.20 per week or 90% of average earnings.
- To be eligible a person’s average weekly earnings need to exceed the Lower Earnings Limit (currently £120 per week) over a prescribed 8-week test period.