What is Statutory Paternity Pay?

Statutory Paternity Pay is the amount of money that must by law be paid to the father of a new baby while he is away from his job.

Statutory Paternity Pay (SPP) is a payment made by employers to employees who are taking time off work to care for a new baby. It is a legal requirement for employers in the United Kingdom to provide SPP to eligible employees, and it is designed to help new parents financially during the period of parental leave.

The purpose of Statutory Paternity Pay is to provide financial support to new parents during the period of parental leave. This is to help them cover the costs of childcare, medical expenses, and other costs associated with having a new baby. It is also designed to help new parents adjust to their new roles as parents and to provide them with the time they need to bond with their new baby.

To be eligible for SPP, an employee must have been employed by their employer for at least 26 weeks by the 15th week before the baby is due. The employee must also have earned an average of at least £120 a week in the 8 weeks leading up to the 15th week before the baby is due.

The amount of SPP that an employee is entitled to depends on their average weekly earnings. The amount of SPP is paid at the rate of 90% of the employee’s average weekly earnings, up to a maximum of £151.20 per week. This amount is paid for up to two weeks, and is paid in the same way as the employee’s normal wages.

Employers are responsible for paying the SPP to their employees, and the payment must be made within 14 days of the employee’s leave commencing. Employers can claim back the cost of SPP from HMRC.

For businesses that are just starting out, it is important to be aware of the legal requirements around SPP. Employers should ensure that they are aware of the eligibility criteria and the amount of SPP that they are required to pay. It is also important to ensure that the payment is made on time, as failure to do so could result in a penalty from HMRC.

In conclusion, Statutory Paternity Pay is a payment made by employers to employees who are taking time off work to care for a new baby. It is a legal requirement for employers in the United Kingdom to provide SPP to eligible employees, and it is designed to help new parents financially during the period of parental leave. Employers should ensure that they are aware of the eligibility criteria and the amount of SPP that they are required to pay, and that the payment is made on time.