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Statutory maternity pay and statutory sick pay rates are not expected to rise in 2016. The Government has proposed that there be no annual increase in various statutory rates, including maternity pay, paternity pay, shared parental pay, adoption pay and sick pay this year.

The current weekly rate of statutory maternity pay and other parental payments is £139.58, or 90% of the employee’s average weekly earnings if this figure is less than the statutory rate.

There is no statutory requirement to uplift these rates every year, but they normally increase each April in line with the consumer price index (CPI). However, the CPI fell by 0.1% in the year to September 2015, so there will be no increase to the rates in 2016/17.

The rate of statutory sick pay is also frozen at the current weekly rate of £88.45.

To be entitled to these statutory payments, the employee’s average earnings must be equal to or more than the lower earnings limit. This amount will also be frozen at £112.