To qualify for statutory maternity pay an employee has to have 26 weeks continuous service with the one (current) employer by the beginning of the fifteenth week before the expected week of childbirth (EWC). You can get advice from HMRC Employer Helpline. SMP must be paid in full. Can I confirm it is the payslips they look at so not what I actually worked in the qualifying weeks? Maternity Allowance is paid for 39 weeks. All content is available under the Open Government Licence v3.0, except where otherwise stated, working out 80% of your employees wages through the, Statutory Maternity Pay: employee not entitled – form for employers, Statutory Maternity Pay: employee circumstances that affect payment, Statutory Maternity Pay and Leave for employers and employees, Check if you can get leave or pay when you have a child, Statutory Maternity Pay and Leave: employer guide, Coronavirus (COVID-19): guidance and support, Transparency and freedom of information releases, the date the baby’s due – from your employee’s MATB1 form, your employee’s gross pay and the dates she was paid, confirmation that your employee’s gross earnings are liable to employer’s Class 1 National Insurance contributions or would be but for the employee’s age or level of earnings, divide by 2 (number of months in the relevant period), multiply by 12 (number of months in the year), divide by 52 (number of weeks in the year), February – 14 days or less round down, 15 days or more round up, any month except February – 15 days or less round down, 16 days or more round up, occurs when the date of the actual payment of earnings is made earlier or later than the normal contractual payday, such as an annual holiday, should not be confused with a payroll error, where a mistake is made in the payroll resulting in a shortfall of pay when working out the, would have received from their employer had they not been on furlough, you’re claiming the employee’s wages through the, as a result of the coronavirus crisis, during the relevant period you agreed a reduction in pay with your employee outside of the. Statutory maternity pay rates. This is 90 payable days. During the first 6 weeks of maternity leave. For the remaining 33 weeks, £140.98 per week or 90% of the employee’s average weekly earnings, whichever is … Divide the total earnings in the relevant period by the number of weeks wages actually paid. Date current employment commenced Part of your statutory maternity pay is based on your average pay. The AWE in the relevant period must not be less than the Lower Earnings Limit (LEL) for National Insurance contributions which applies at the end of the qualifying week: Divide all earnings paid in that relevant period by the number of days, weeks or months in that period. In 2020, the maximum amount is $344 a week. 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). Your employee receives this after the 20th week of pregnancy and it includes the date the baby is due. How does it work? My timesheet was late getting processed one month due to me being on holiday then my line manager being away. 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. This is calculated on gross earnings subject to class 1 national insurance contributions. That normal payday is the last day of the relevant period. The Quebec Parental Insurance Plan pays a maximum of 75% of your income, up to a maximum amount. We use this information to make the website work as well as possible and improve government services. Date current employment commenced. Retain records and recover SMP. You get 90% of your average weekly earnings. If a pay-rise is awarded whilst you’re on maternity leave (and you would have received it if you were not on maternity leave), you are still treated as receiving it. Statutory Maternity Pay is paid by your employer if you have worked for them since the start of your pregnancy and you earn more than £120 per week. Your pay is calculated based on the date you finished work and the number of days in the month. How is Maternity Pay Calculated if the Employee has had a Pay Rise? Don’t include personal or financial information like your National Insurance number or credit card details. The calculate Average Weekly Earnings (AWE) section has been updated. As an individual the total you get from both payments can’t be more than 18 weeks. To help us improve GOV.UK, we’d like to know more about your visit today. During the next 33 weeks of maternity leave 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. Your NHS maternity pay is calculated on the basis of your average weekly earnings for the 8 weeks ending with the qualifying week, which is the 15th week before your expected week of childbirth. This is made up of: 26 weeks of ordinary maternity leave (OML) and: 26 weeks of additional maternity leave (AML), beginning the day after OML finishes. So has this effected my SMP because if they look how much I received into my bank in those two months it was only the one payment for one month’s work. If you are employed by the NHS, section 15.22/15.23 of the NHS handbook covers the calculation of maternity pay… You can use the maternity pay calculator to work out how much you could get. Divide the weekly rate by 7 and multiply by the number of days for which SMP is due in the week or month. You can find guidance on working out 80% of your employees wages through the CJRS scheme. The lower rate of Maternity Allowance is £27 per week for 14 weeks. 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. You’ll need to pay tax on any benefits you get during maternity, parental or adoptive leave. The end of the relevant period is the last normal payday on, or before the Saturday of the qualifying week. You’re entitled to 90 per cent of your average weekly pre-tax earnings for the first six weeks. 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 is paid for the first 6 weeks at 90% of average weekly earnings, followed by a further 33 weeks at the lesser of 90% of average weekly earnings or the applicable statutory rate which varies each year. Maternity money is calculated using a … There is a calculator to help you on the government website. Add up all the earnings paid between 17 October 2020 to 11 December 2020 and divide by 8 (the number of weeks in the relevant period). For the first 6 weeks. After that £148.68 or 90% of your average weekly earnings – whichever is the lower amount – for the following 33 weeks. You should also consider payments the employee was due to receive in the relevant period that would have been classed as earnings. You can change your cookie settings at any time. However, in order to calculate average earnings, you need to understand which period you are required to refer. If an employee is paid weekly and the baby is due on 25 March 2021: The relevant period is 17 October 2020 to 11 December 2020. read more, Insecure work and its impact on pregnant women, A new report highlights how insecure work means many women are losing out on basic maternity rights. Your partner may also be eligible for Dad and Partner Pay for up to 2 weeks. In essence this means that an employer can only claim the 80% on the enhanced payment and not the statutory payment. 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. Statutory Paternity Pay is paid at either 90 per cent of earnings or £151.20 (whichever is lower). Statutory Maternity Pay (SMP) is paid for up to 39 weeks. Enhanced Maternity Pay Calculator Statutory Maternity Pay ... leave Claiming maternity pay Claiming child benefit Universal Credit while on leave Claiming marriage allowance How is maternity pay calculated? The examples under the heading 'Work out Average Weekly Earnings (AWE)' have been updated for 2020 to 2021. 5. 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. The earnings used to work out their AWE for the part of the 8 week period that they were furloughed will be the higher of either what they: Where it’s not clear what the employee would have received, a helpful starting point is the reference salary used to determine how much you can claim through the CJRS. There’s a good chance you’ll be able to get maternity pay if you're having a baby and you have a job or had one recently. Here’s some useful a… https://t.co/GWM5g4C1wxDec 18th, Browse Q&A Ask a question Meet the experts Register For Recruitment Emails, Search here for Franchise Opportunities, Top Employers, Returner Programmes, Events and Articles, Click the button below to register your interest with all the franchises in your selection, This franchise opportunity has been added to your franchise selection, You may be interested in these similar franchises, We have announced the shortlist for our 2021 Top Employer Awards based on best practice in relation to this year’s…. Any ‘enhancement’ to statutory payments (i.e. 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. Work out the number of rounded months as follows: Divide the earnings by this number of rounded months. 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. To do this, take all earnings paid in the relevant period (this is usually the 8 week period before the employee is due to go on maternity leave) and divide the earnings by the number of weeks in that period. +Maternity leave × All pregnant employees are entitled to take up to 52 weeks maternity leave. Is this true? Rates, allowances and duties have been updated for the tax year 2016 to 2017. This is calculated as a weekly average of total gross earnings from your employer during a particular reference period (the “relevant period”). If during this 8-week relevant period, an employee worked reduced hours, and thus received reduced pay, this will result in him/her receiving less statutory maternity pay as the “normal weekly earnings” in this 8-week period will have been reduced. This is usually the 8 week period before the qualifying week. If they earn £116 or more in the tax year, they are eligible for SMP. Statutory maternity pay rates. Employers must also comply with the legislation on the payment of benefits to such employees. During the first 6 weeks of maternity leave Pay them 90% of their average weekly earnings (before tax). Whilst every care has been taken in compiling this answer, workingmums.co.uk cannot be held responsible for any errors or omissions. How is statutory maternity pay calculated? Divide the earnings by the number of weeks wages actually paid, not the number of weeks in the relevant period. 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