A cavalcade of changes are coming for businesses in April and keeping track of them all is a challenge.
Among all of the updated measures is an increase in paternity and maternity pay.
These changes take effect in the new tax year, so it is vital that businesses prepare ahead of time.
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.
Alongside this, paternity leave is going to be a day one right in the same way that maternity leave is.
The biggest impact, as far as payroll is concerned, is that different wages will inform the calculation of maternity pay for at least the first six weeks of maternity leave.
This is due to the employee being paid 90 per cent of their weekly salary for those six weeks instead of SMP.
Even in the 33 weeks remaining of maternity leave, the employee is paid the lower of SMP or 90 per cent of their weekly salary.
The reason this may put a strain on your payroll calculations is due to the changing wages that hit just days before.
1 April 2026 sees an increase to both the National Minimum Wage (NMW) and the National Living Wage (NLW).
Even for businesses that pay above these rates, it is anticipated by many employees that other wages will increase by some amount during this time.
This will ensure that there continues to be a fair distribution of pay according to qualifications and experience.
As such, it is likely that these new wages will be required for calculating the new rates of maternity pay.
As the changes follow on from rising wages and happen concurrently with changes to Statutory Sick Pay (SSP), it is understandable that some employers may feel overwhelmed.
Rather than risking becoming noncompliant with the updated policies, you should seek professional financial support as early as possible.
This can help you keep your records straight and your employees happy.
Our team is on hand to manage your payroll processing for you so that you can focus on running your business.
Protect the new parents on your team by speaking to our experts today.
