Are there any implications for Statutory Maternity Pay (SMP)?
If an employee: • is, or becomes, pregnant • and they are taking childcare vouchers through salary sacrifice • and they are only entitled to Statutory Maternity Pay (SMP) it is advisable that they opt out of the scheme 23 weeks (i.e. week 17 of the pregnancy) before the baby is due, and opt in again 15 weeks (i.e. week 26 of the pregnancy) before the baby is due. This 8 week period is known as the ‘qualifying or set’ period and earnings during this period will be used to determine SMP. SMP is currently 90% of average weekly earnings for the first 6 weeks of statutory maternity leave and then 117.18 for the remaining 33 weeks or 90% of the woman’s average weekly earnings, whichever is lesser. They can opt back in to receive childcare vouchers again after the 15th week before the week of confinement. Vouchers are not recognized as income during the ‘qualifying or set’ period so the lower earnings would be used to calculate entitlement to SMP for the first 6 weeks. How employers view what
If an employee: • is, or becomes, pregnant • and they are taking childcare vouchers through salary sacrifice • and they are only entitled to Statutory Maternity Pay (SMP) it is advisable that they opt out of the scheme 23 weeks (i.e. week 17 of the pregnancy) before the baby is due, and opt in again 15 weeks (i.e. week 26 of the pregnancy) before the baby is due. This 8 week period is known as the ‘qualifying or set’ period and earnings during this period will be used to determine SMP. SMP is currently 90% of average weekly earnings for the first 6 weeks of statutory maternity leave and then 123.06 for the remaining 33 weeks or 90% of the woman’s average weekly earnings, whichever is lesser. They can opt back in to receive childcare vouchers again after the 15th week before the week of confinement. Vouchers are not recognized as income during the ‘qualifying or set’ period so the lower earnings would be used to calculate entitlement to SMP for the first 6 weeks. How employers view what
