Definition
A voluntary employer benefit that provides paternity pay above the statutory minimum rate. Enhanced paternity pay is offered as part of an employer's parental leave policy to support new parents and promote workplace equality.
UK Context
Statutory Paternity Pay for 2025/26 is 187.18 pounds per week or 90% of average weekly earnings, whichever is lower. Many UK employers offer enhanced paternity pay, sometimes at full pay, for part or all of the two-week entitlement. Under the Equality Act 2010, employers should consider whether offering significantly better maternity pay than paternity pay could amount to indirect sex discrimination.
Best Practices
- Clearly document enhanced paternity pay entitlement in the employee handbook and contracts
- Review the gap between enhanced maternity and paternity pay to ensure it is objectively justified
- Actively promote take-up of paternity leave to all eligible employees
Frequently Asked Questions
Is enhanced paternity pay a legal requirement?
No, enhanced paternity pay is a voluntary benefit. Employers are only legally required to pay Statutory Paternity Pay. Enhanced pay is offered as a competitive benefit to attract and retain talent and promote parental equality.
How does enhanced paternity pay affect Shared Parental Leave?
Enhanced paternity pay applies only to the two-week paternity leave entitlement. If the employee takes Shared Parental Leave, the employer's enhanced SPL policy (if any) would apply to that period instead. These are separate entitlements.