April is bringing in a host of new changes for businesses and it can be difficult to keep track of them all.
Maternity and paternity rates are changing and it is vital that these do not get overlooked in your preparations.
Coming in the new tax year, you need to understand the new rates and plan accordingly.
What is changing with maternity and paternity pay?
From 6 April 2026, both Statutory Maternity Pay (SMP) and Statutory Paternity Pay (SPP) will be increasing.
Both are increasing from £187.18 a week to £194.32 a week.
Additionally, paternity leave is mirroring maternity leave as a day one right.
In terms of the impact on your payroll, the rate of maternity pay for the first six weeks is linked directly to an employee’s wage.
In the first six weeks of maternity leave, you must pay an employee 90 per cent of their weekly wage.
For the remaining 33 weeks of maternity leave, you are then obligated to pay the lower of SMP or 90 per cent of their weekly salary.
The reason this may add complications to planning is due to the changes in wages that are scheduled to come into effect just days before maternity pay rates change.
From 1 April, both the National Minimum Wage (NMW) and the National Living Wage (NLW) are increasing.
Even for employers who pay above these amounts, the increase may warrant a revision of salaries across the business to ensure that employees feel rewarded for different levels of qualification and experience.
How can businesses stay compliant with maternity and paternity pay changes?
Rising wages start the month, but the changes to maternity and paternity pay coincide with changes to Statutory Sick Pay (SSP).
This means there are a lot of updates to payroll you will need to make to ensure that you are adequately compensating employees in April.
Rather than going it alone and risking compliance issues, you should seek professional financial support.
Our team can help you understand shifting obligations and manage your payroll processes so that you do not become noncompliant.
Employees will be justifiably upset if your payroll is handled poorly, so let us keep you ready for the changes that are coming your way.
All of these changes are part of the strong financial implications of the Employment Rights Act that will continue to affect change throughout this year and 2027, so understanding what is changing and when is vital.
Protect the new parents on your team by speaking to our experts today.
