Employees who are entitled to parental leave will receive an amount based on their full earnings and not their furloughed salary.
The Government announced this on the 24/04/20. Workers who are eligible for maternity pay, paternity pay, shared parental pay, parental bereavement pay and adoption pay will see the full amount of pay. The pay will not be based on 80 per cent of their usual wages.
Usually, maternity pay and adoption pay, are calculated through someone’s average earnings over an eight-week period. Maternity allowance is based on earnings over a 13-week period.
This move means that any employees whose family-related pay either begins on or after the 25th April will be assessed on their usual full pay. The idea is that this will safeguard parents from COVID-19 having an impact on the amount of parental pay they receive.
Paul Scully, business minister said:
Maternity and other forms of parental leave are pivotal times in people’s lives, and they should absolutely be protected from the impacts of Covid-19.
We are supporting workers and businesses in a way never seen before, in response to the unprecedented effects of Covid-19. These measures will ensure those on the Coronavirus Job Retention Scheme continue to receive the parental leave and pay they are entitled to.
Baroness Stedman-Scott, Lords Minister for the Department for Work and Pensions (DWP) said:
At an already challenging time for families, peace of mind that they can rightly take time off and receive their full entitlement will provide much needed reassurance.
Throughout this health emergency we’ve taken unprecedented steps to help those affected make ends meet, and today’s new measures further extend vital financial support.
In January 2020 prior to the outbreak of COVID-19, the Government announced that parents who suffer the loss of a child under the age of 18 will be entitled to two weeks paid statutory parental bereavement leave (SPBL). This made the UK the world leader in paid bereavement leave, as it offers double the amount of time compared to other countries.