Coronavirus Job Retention Scheme – Parental pay to be paid based on usual earnings

It has now been confirmed that workers who have been furloughed through the Coronavirus Job Retention Scheme (CJRS) that are taking parental or adoption leave will receive parental or adoption pay based on their usual earnings.

Entitlement to statutory parental or adoption pay is ordinarily calculated based on a worker’s average earnings over an eight-week period.

But, as workers that have been furloughed are entitled to 80 per cent of their usual salary, there were concerns that these payments would be calculated based on the lower furlough rate.

The Government has now confirmed that parents that begin their period of family leave on or after 25 April 2020 will receive their parental pay based on their usual full pay, rather than the lower rate that they may be being paid during their furlough leave.

This follows the introduction of new rules earlier in April that give parents who lose a child under the age of 18 the right to two weeks’ paid leave.

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.”

For help and advice on matters relating to employment law, contact Hayley Trovato today.

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