How much is statutory maternity pay?
Statutory maternity pay (‘SMP’) is currently payable for a period of up to 26 weeks. There are two rates of SMP. For the first 6 weeks, SMP is paid at the higher rate, this is 90 % of the employee’s normal weekly earnings. Following a recent case at the European Court of Justice, ‘normal weekly earnings’ will have to include any pay rises made up to the end of her maternity leave, although the government has yet to decide how the law will be changed to implement this. For the remaining 20 weeks, SMP is paid at the lower rate, now £108.85 a week, or 90 % of the woman’s average earnings if this is less than £108.85 per week. The government is planning to extend maternity pay to nine months by April 2007, and subsequently to twelve months by the end of the next Parliament. It is also proposing to introduce a new right for mothers to transfer a proportion of their maternity leave and pay to fathers.
There are two rates of statutory maternity pay (SMP). For the first six weeks, SMP is paid at the higher rate, ie 90 per cent of the employee’s normal weekly earnings. Following a recent case at the European Court of Justice, ‘normal weekly earnings’ will have to include any pay rises made up to the end of her maternity leave, although the government has yet to decide how the law will be changed to implement this. For the remaining 33 weeks, SMP is paid at the lower rate, now £123.06 a week (from April 2009), or 90 per cent of the woman’s average earnings if this is less than £123.06 per week. There are plans to extend SMP to 12 months. The government is also proposing to introduce a new right for mothers to transfer a proportion of their maternity leave and pay to fathers.
You’re entitled to receive 90% of your salary for the first six weeks of maternity leave, followed by a maximum of £117.18 a week for another 33 weeks. Your employer might offer an enhanced maternity pay scheme, so talk to them as early as possible to find out what you’ll get. Holiday pay: Your holiday pay continues during maternity leave, so talk to your employer about the rate of holiday pay you’re entitled to and how this will be paid. You may be able to tag your paid holiday leave onto the start or end of your maternity leave or agree to have it paid in a lump sum. Keeping In Touch (KIT) days: You’re allowed to work for up to 10 days during your maternity leave without it affecting your maternity pay. You’ll be paid at least the National Minimum Wage for these KIT days. Your employer doesn’t have to offer you any KIT days and you don’t have to take up any offer. Other income and benefits • Child Benefit: Anyone bringing up a child or young person is entitled to claim this monthly,
It is based on your earnings in the eight weeks before the qualifying week. For the first six weeks you get 90 per cent of your average pay and after that you will get the basic rate (£123.06 per week) for 33 weeks (or 90 per cent of your average pay if it’s less than this). So if you take the full 12 months off, nine months will be paid. Your employer claims all or most of this money back from the state.
