Introduction This section looks at how maternity and adoption pay is calculated. Your earnings during weeks 18-25 of your pregnancy are generally used to calculate what your average earnings are for the purposes of calculating maternity pay. If you’re classed as a small employer, you can recover 100% plus 3% in small employers’ relief.Otherwise, you can recover 92%. It’s important that you agree any changes to your working pattern with your employer, as this may affect your maternity pay. For help and support go to the Maternity Action website. The end of the relevant period is the last normal payday on, or before the Saturday of the qualifying week. Answer. I don’t pay pension contributions while Im on mat leave and my work pay for the childcare vouchers. In terms of the fact that you got double pay one month and none the month before due to your employer’s administrative error, then I think you should talk to them about this and point this out since that error should not be allowed to affect your SMP calculation. Navigating the ins and outs of maternity leave while you’re in full-time employment is one thing, but figuring out maternity leave when you’re self-employed can be substantially trickier. Your email address will not be published. While the PayFit app's calculations are automated for your convenience, it is still useful to understand how maternity pay calculation work should an employee ever have any questions. In 2020, the maximum amount is $344 a week. You get whichever is lower: SMP – currently £151.20 a week; 90% of your average weekly earnings; You get the same amount of maternity pay even if you have more than one baby, for example twins. The daily rate of maternity leave pay is a sum equivalent to four-fifths of the average daily wages earned by an employee in the 12-month period preceding the first day of the maternity leave. The weekly amount is 90% of your average weekly earnings for the first 6 weeks and then £151.20 or 90% of your average weekly earnings (whichever is lower) for the following 33 weeks. How can I extend my maternity leave? You can find guidance on working out 80% of your employees wages through the CJRS scheme. They say maternity bay is based oin "NIable pay". How is statutory maternity pay calculated when there is a salary-sacrifice arrangement in place? The start of the relevant period is the day after the last normal payday falling at least 8 weeks before the end of the relevant period. For the remaining 33 weeks, £148.68 per week or 90% of the employee’s average weekly earnings, whichever is lower. During weeks 1-8 you may receive 90-100% of your usual income as dental maternity pay, for example, whilst your payments during weeks 9-26 may be reduced to 50% of your average income. Statutory Maternity Pay ( SMP) is paid for up to 39 weeks. How is Maternity Pay Calculated if the Employee has had a Pay Rise? Maternity money is calculated using a special formula, which is approved by law. Information you need to work out your employee’s Statutory Maternity Pay (SMP): AWE must include all earnings on which Class 1 National Insurance contributions are due, or would be due if they were high enough. Take the last normal payday on or before the end of the Qualifying Week. This is the medical evidence that your employee usually provides as proof of pregnancy. Pay them 90% of their average weekly earnings (before tax). For maternity allowance, up to £151.20 a week is available for up to 39 weeks. Usually, the earnings taken into account for monthly paid employees are those set out on the last two payslips before the Qualifying Week (which is the 15th week before your Expected Week of Confinement / Childbirth). The value of childcare vouchers provided during the maternity pay period should not be deducted from the SMP. Don’t worry we won’t send you spam or share your email address with anyone. During the flurry of furlough, we had several queries from our clients in respect of how to calculate statutory maternity pay (SMP) for employees who were on maternity leave but had been furloughed.. For the remaining 33 weeks, SMP is paid at either the flat SMP rate (which changes annually in April), or 90% of the employee's average weekly earnings if this is lower. This may happen if you pay your employee fortnightly or 4 weekly. Use our NHS Maternity Pay Calculator to see your monthly take home pay while on maternity leave. Find out how to manually calculate Statutory Maternity Pay if your payroll software or the GOV.UK calculator does not work out your employee’s payments. So I did not receive a payment the next month but double the month after. Use our benefit calculator to check what you will be entitled to. Rates, allowances and duties have been updated for the tax year 2017 to 2018. You’ll need to pay tax on any benefits you get during maternity, parental or adoptive leave. I don't know about the vouchers - but the above is how the pay is likely to be calculated. You get 90% of your average weekly earnings. Benefit calculation. How is statutory maternity pay calculated? SMP is such a complex area and so I would recommend you looking at “NI17A A Guide To Maternity Benefits” which can be found on the Department of Work & Pensions. Use our SMP dates calculator to clarify your statutory maternity pay entitlements. For example, if the pay period covers the end of one month and the beginning of the next (2 days in April and 5 days at the beginning of May) then pay two-sevenths in one month and five-sevenths at the beginning of the next month. As an individual the total you get from both payments can’t be more than 18 weeks. If such a pay award was agreed retrospectively, the maternity pay should be re-calculated on the same basis. Earnings that will be taken into consideration include regular contractual payments such as London weighting and banding supplements for junior hospital doctors. Parental Leave Pay is currently $150.78 per day before tax. Don’t include personal or financial information like your National Insurance number or credit card details. For the first six weeks of an employee's maternity leave, statutory maternity pay (SMP) is paid at 90% of the employee's average weekly earnings. Gross earnings are taken into consideration, including banding. Where over or under payments of wages occur within the relevant period, you must include the overpaid or underpaid amount in the AWE calculation for deciding if SMP is due. After that you get a flat rate (£148.68 per week up to 4 April 2020 and £151.20 per week from 5 April 2020) for 33 … My employers are calculating my maternity pay from the 15th week before my baby is due and eight weeks back. SMP must be paid in full. However, in order to calculate average earnings, you need to understand which period you are required to refer. The day after that payday is the first day of the relevant period. This will be capped at 24 working days. Statutory maternity pay rates. The government recently tweaked the way maternity pay is calculated to help mums who were put on furlough during their pregnancy. You can use the maternity pay calculator to work out how much you could get. Is this true? Work out the number of rounded months as follows: Divide the earnings by this number of rounded months. To determine how much Statutory Maternity Pay (SMP) you should get, your employer should recalculate your average weekly earnings as if these earnings included the pay-rise. Benefit Cap. Whilst every care has been taken in compiling this answer, workingmums.co.uk cannot be held responsible for any errors or omissions. Statutory Maternity Pay (SMP) is paid for 39 weeks. If your business does not offer enhanced maternity pay, it must pay the following. The average is calculated from the pay you actually received in the eight weeks or two months up to the last pay day before the end of the qualifying week. If you are employed by the NHS, section 15.22/15.23 of the NHS handbook covers the calculation of maternity pay… These rules apply where the employee’s period of family-related statutory pay begins on or after 25 April 2020. How does it work? An employee's statutory maternity pay (SMP) entitlement is calculated in accordance with their weekly earnings during the period of eight weeks that immediately precede the 14th week before their expected week of childbirth. During the first 6 weeks of maternity leave. In 2020, the maximum amount is $344 a week. During the first 6 weeks of your maternity leave you get 90% of your weekly wage. If they earn £116 or more in the tax year, they are eligible for SMP. Maternity pay and leave can be a complex area. Information you need to work out your employee’s Statutory Maternity Pay (SMP): the date the baby’s due – from your employee’s MATB1 form your employee’s intended start date for SMP, if … Statutory Maternity Pay counts in full as income when calculating your entitlement to other means-tested benefits. You’ve accepted all cookies. For the first 6 weeks. Rates, allowances and duties have been updated for the tax year 2016 to 2017. During the next 33 weeks of maternity leave. You may be able to recover some or all of the SMP you pay. Crazy stuff!!! Usually, the earnings taken into account for monthly paid employees are those set out on the last two payslips before the Qualifying Week (which is the 15th week before your Expected Week of Confinement / Childbirth). You could get one of these: These payments would be as well as any maternity leave you get. for statutory maternity pay, read the rest of this page for details; for contractual maternity pay, look in your contract or ask your employer - it will never be less than statutory maternity pay; for Maternity Allowance, use the calculator on GOV.UK to find out what you’ll get This is 10 payable days. The calculate Average Weekly Earnings (AWE) section has been updated. Statutory maternity pay rates. Offering enhanced maternity pay can help your business attract and keep the best employees. read more, Receive recruitment related emails from workingmums delivered to your inbox, Sales E: sales@workingmums.co.uk T: +44(0)20 8432 6094, Customer service E: info@workingmums.co.uk, Technical Queries E: support@workingmums.co.uk, Contact us by post: Working Mums Ltd PO Box 53228, London, N3 1YR, @WorkingMumsSponsored by MTR Elizabeth line, @Roche, @McDonaldsUK, @PwC, @StanChart and @kearney the #TopEmployerAwards shortli… https://t.co/c6tPdbUmPBDec 18th, @WorkingMumsWe have announced the shortlist for our 2021 Top Employer Awards based on best practice in relation to this year’s… https://t.co/q87W7ctt3NDec 18th, @WorkingMumsIf you are recently #selfemployed , how do you protect your well being in the current climate? For babies born before or during the qualifying week, the 8 week relevant period is the period between the last normal payday on or before the Saturday of the week before the baby is born, and the day after the last normal payday falling at least 8 weeks before. We’ll send you a link to a feedback form. A glossary of all maternity-related Having a baby is fabulous news, but it can be expensive. read more, Childcare consultant Angela Spencer has some advice on the importance of reducing stress during pregnancy, including work-based stress. How much maternity pay you get, and how long it lasts, depends on what type of maternity pay you’re entitled to:. You can pay SMP in part weeks if it helps to align the payments to your employees normal pay period. 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