You must give your employer evidence that you are pregnant. However, to attract and retain female employees, some employers will offer an enhanced level of maternity pay. Statutory Maternity Pay (SMP) is paid for employees that are on maternity leave for up to 39 weeks. . Unless you have given your employee additional benefits above SMP. Enhanced Maternity Pay is offered by almost two thirds of UK Organisations. You build up holiday as normal while you're on maternity leave. However, there was considerable variation in how employers . Statutory Maternity Pay (SMP) What is Statutory Maternity Pay? What this means for you as an employer If a pay rise is processed at any time from the start of the qualifying period for calculation until the end of the period of maternity leave, the employer is obliged to recalculate the SMP due, using the new increased rate. How much is unpaid I'm in London. All pregnant employees are entitled to 26 weeks Ordinary Maternity Leave and 26 weeks Additional Maternity Leave whether or not they qualify for SMP or MA. In the UK, Statutory Maternity Pay (SMP) is paid for up to 39 weeks. Choose " Setup " and click " Next ". As for enhanced maternity pay that is included in SMP payments - In light of recent court of appeal decision in Capita Customer Management Ltd v Al and Hextall v Chief Constable of Leicestershire Police [2019] IRLR 695 it is neither discriminatory nor a breach of equal pay to pay women more enhanced maternity pay than . Give you the correct notice - 15 weeks before the expected birth date if taking maternity leave and 28 days' notice if due to receive SMP. They may pay full pay for the first six weeks, half pay for the following 10 weeks and maternity pay for the remaining 23 weeks. Enhanced Maternity Pay is correct at 31/3/2022. 19/10/2021 18:20. They must earn on average at least 112 a week. SMP is calculated by averaging your earnings over a period of at least 8 weeks up to and including the last pay day before the end of the qualifying week. SMP - an introduction. calculate your maternity leave take-home pay. SMP is not payable in addition to contractual payment. The amount of SMP paid for the first 6 weeks of the Maternity Pay Period. Check the maternity benefits you're entitled to & how much SMP, Enhanced Maternity Pay, Maternity Allowance & Child Benefit you'll get each month after tax. They may pay more than statutory maternity pay for a fixed period. The payment should be made to employees through payroll . Occupational maternity pay is also paid for a continuous period of up to 39 weeks. 13 weeks' unpaid leave. They will receive 90% of their average weekly earnings for the first 6 weeks, and up to 156.66/week for the remaining 33 weeks. Where a woman has not started her maternity leave when she gives birth, it will start on the day following the birth, in this case on the Wednesday. You might only give an additional 10 per week in occupational maternity pay. check if you're eligible for maternity leave & pay. During the first 6 weeks of maternity leave Pay them 90% of their average weekly earnings (before tax). The most common maternity pay enhancement, provided by 42% of employers, is full pay for more than six weeks, followed by the standard statutory maternity pay rate. tools. two weeks at 9/10ths of a week's pay (SMP offset) 12 weeks at half pay (+ SMP). Sub: Letter For Rejoining Job. You can record this by following the steps below: Select Payroll, then select Pay Runs. To support employees undertaking maternity leave, the Company offers enhanced maternity pay (EMP). However, there was a wide variation in how employers enhance pay for new parents. Published: 24 May 2021 Nearly two thirds (63.5%) of businesses offer maternity pay above the statuary minimum in the UK, and three-fifths (60.8%) offer enhanced paternity pay. I'm also stuck on how to include maternity pay into my tax return? Statutory Maternity Pay (SMP) is paid for 39 weeks. It's paid in the same way as your normal wages with tax and National Insurance deducted at source. Have worked for you continuously for at . It's an optional payment that you choose to give your staff on top of SMP. You can alter your pay details or maternity scheme to get a . The findings, from a report by XpertHR, show encouraging signs that employers are taking support for their working parents more seriously. This is over and above SMP. SMP is payable at 90% of the employee's average weekly pay for 6 weeks and then at a rate of 156.66 (for 2022-23) or 90% of the average weekly wage whichever is lower. Your employee should inform you of the date they wish their leave to begin and how many weeks of maternity leave that they intend to take. Your employer does not have to pay more than SMP, unless you have a contractual right to extra maternity pay, but they cannot pay you less than SMP if you are eligible for it. Statutory maternity pay (SMP) will also. Building up holiday on maternity leave. Maternity Allowance is paid at a flat rate and is not linked to your salary. You just need your due date and salary to see an initial Statutory Maternity Pay forecast. The shared parental leave is also the same as the maternity leave. Your employer's policy and/or the letter they send you confirming your maternity pay details should be clear. The amount the employee is due to receive before any deductions are made. You might know it as enhanced maternity pay or contractual maternity pay. The percentage of private sector organisations offering EMP was 65.5% in 2021 but new data from February 2022 shows this has increased to 74.1%. To continue reading, register for free access now. For the first four weeks, you will be paid at 100 per cent of salary if eligible. Type 1: those which calculate enhanced maternity pay in the same way as SMP (by assessing the employee's average earnings prior to the start of maternity leave) and pay the employee a percentage of those average earnings for [x] weeks/months during maternity leave; and Normally enhanced packages are inclusive of SMP entitlement, but not always. Family-friendly rights and support. The LEL for 2013/2014 is 109 per week or 473 per month. However, my maternity pack stated this for my CMP: 4 weeks full contractual pay; 2 weeks at 90% contractual pay: 12 weeks half contractual pay; 33 weeks SMP or 90%. Enhanced maternity pay Some employers offer enhanced maternity pay to attract and retain staff either as a contractual right or on a case-by-case basis. In the first 6 weeks of Statutory Maternity Pay, eligible employees can receive 90% of their average weekly earnings and then 90% of their weekly average earnings (or 151.20 and 151.97 for 2021/22) after that. The AWE is recalculated as 4,366.24 (i.e. Statutory maternity pay (SMP) You can easily process statutory maternity pay (SMP) by using Payroll to automatically calculate it for you. SMP can also be offset against other contractual remuneration such as contractual notice pay and enhanced contractual redundancy pay (but not against statutory . It is 90% of the average weekly earnings. A. What you can reclaim. I understand that I receive SMP for 39 weeks. full pay for the first six weeks, half pay for the next ten weeks, SMP for the remaining 23 weeks; make a bonus payment on the employee's return to wor Alternatively, 45.9% of businesses offered financial benefits to those returning from maternity leave, such as a bonus. Give you proof that they're pregnant - usually a MATB1 certificate, which should be provided by their midwife. (For some reason I thought I had to but reading HMRCs site I now beleive it is a tax free benefit .. is anyone albe to confirm?). I get full pay for 3 months, 50% pay for 3 months, SMP for 3 months and 3 months unpaid. Enhanced Maternity, Paternity & Adoption Pay Maternity The hospice offers enhanced maternity pay at: 8 weeks' full pay inclusive of SMP (Statutory Maternity Pay) 10 weeks' half pay plus SMP (if this payment exceeds full pay then the amount paid would be reduced so that the employee does not receive more than full pay for this period. SMP is paid for 6 weeks at 90% of your average salary and for 33 weeks at a flat rate of 156.66 per week (April 2022-April 2023) or 90% of your average earnings if that is less. It starts when you take maternity leave or if you're off with a pregnancy-related illness in the four weeks before your baby is due. You can also find information from GOV.UK Qualifying rules Entitlement All employers can recover some, if not all, of the statutory maternity pay (SMP), that they pay to employees. Of these organisations, three in 10 offer full pay for three months, although two in 10 do so for . If you meet the SMP qualifying criteria set out above, you will be entitled to receive: weeks 1 to 26 on full pay (SMP topped up to the equivalent of your contractual salary "enhanced maternity pay") weeks 27 to 39 on SMP; and; weeks 40 to 52 are unpaid This must be the case on the Saturday at the end of your qualifying week. It can also include Statutory Sick Pay, maternity pay, or any other statutory family pay (e.g., paternity pay, shared parental pay or adoption pay). The remaining 13 weeks' leave are unpaid. It can also work out your Enhanced Maternity Pay or Maternity Allowance and provides a monthly net pay amount after deducting your tax, national insurance, pension contributions and student loan. 8 weeks' full pay, less any Statutory Maternity Pay (SMP) or Maternity Allowance (MA) 18 weeks' half pay plus any SMP or MA (providing the total does not exceed full pay) 13 weeks' SMP or MA. Employees on maternity leave accrue annual leave and are entitled to paid leave in addition to SMP (including bank holidays). Thankyou. Details of any enhanced maternity pay should be included in company documents provided to staff. The top reasons influencing length of leave taken were: 1) job did not offer paid leave; 2) could not afford to take leave; and 3) had not built up enough time to take leave.Pregnancy and Childbirth: Critical Time Periods A MOTHER'S STORY: "The stress of unpaid maternity leave has left my family struggling to survive, to pay bills. To be eligible, the employee must: Earn at least 116 per week Give sufficient notice However, only a quarter offer enhanced shared parental pay, according to XpertHR. Entitlement to our enhanced maternity pay. Once you have qualified for SMP your employer must pay it to you even if you leave employment with them. SMP - eligibility. If you decide to take a year's maternity leave and claim SMP, the last 13 weeks will be unpaid. The next 33 weeks: 151.20 per week or 90% of your average weekly earnings (whichever is less) The calculator makes a number of assumptions about your financial situation when calculating your forecast, you can find out more about these assumptions here. To help you to take time off work both before and after your baby is born, you may be able to get Statutory Maternity Pay (SMP). Enhanced maternity pay If you wish, you can offer enhanced maternity pay arrangements to attract and retain employees. In order for an employee to qualify for SMP, they must earn on average at least 118 a week, give correct notice, provide proof of pregnancy (if you need it) and have worked for you continuously for at least 26 weeks continuing into the 'qualifying week' - the 15th week before the expected week of childbirth. 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