However, in order to calculate average earnings, you need to understand which period you are required to refer. The examples under the heading 'Work out Average Weekly Earnings (AWE)' have been updated for 2020 to 2021. This is to make sure your employee’s eligibility for SMP and earnings-related rate of SMP is not affected if their wages are lower than normal because of being furloughed. If the pay rise is effective during the relevant period, ensure you include the rise in the calculations of AWE. ... the employer is liable to pay her the maternity benefits that she would have been entitled to. Maternity pay for self-employed mums. 5. Statutory Maternity Pay ( SMP) is paid for up to 39 weeks. Dates updated in the example for employees who are paid monthly. SMP is a weekly payment and SMP pay weeks start with the first day of the SMP pay period, so an SMP pay period that starts on a Wednesday will have pay weeks within the pay period which runs from Wednesday to Tuesday the following week. 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. You could get one of these: These payments would be as well as any maternity leave you get. I don't know about the vouchers - but the above is how the pay is likely to be calculated. This may happen if you pay your employee fortnightly or 4 weekly. This means your family can get a total of up to 20 weeks or 100 payable days of payments. Statutory maternity pay (SMP) You can easily process statutory maternity pay (SMP) by using Payroll to automatically calculate it for you. If your child’s date of birth is 1 July, then it’ll be your average monthly commission from 1 January to 30 June. After that £148.68 or 90% of your average weekly earnings – whichever is the lower amount – for the following 33 weeks. Earnings that will be taken into consideration include regular contractual payments such as London weighting and banding supplements for junior hospital doctors. During the first 6 weeks of maternity leave Pay them 90% of their average weekly earnings (before tax). Just take the month you are 17 weeks in, … Company maternity pay or Occupational Maternity Pay) is the element that would be eligible for the furlough claim by the employer. 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. Where an employee is on unpaid sick leave or on sick leave attracting half pay during the whole or part of the period used for calculating average weekly earnings, average weekly earnings for the period of sick absence shall be calculated on the basis of notional full sick pay. We use this information to make the website work as well as possible and improve government services. (If you have already given birth by then, take the last normal payday before the week of birth). 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. Statutory Maternity Pay (SMP) is paid at 90 per cent of usual earnings for the first six weeks, and then £151.20 a week for 33 weeks. Statutory Maternity Pay counts in full as income when calculating your entitlement to other means-tested benefits. It works out your Statutory Maternity Pay (SMP) and NHS Occupational Maternity Pay and provides a monthly net pay amount after deducting your tax, pension contributions and student loan. Introduction This section looks at how maternity and adoption pay is calculated. They say maternity bay is based oin "NIable pay". The 'relevant period' section within the guidance has been amended. Statutory Maternity Pay Dates Calculator. We use cookies to collect information about how you use GOV.UK. For the following 33 weeks. All employers can recover some, if not all, of the statutory maternity pay (SMP), that they pay to employees.. 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. How will this effect my maternity pay. The new rates for working out Average Weekly Earnings and Statutory Maternity pay for 2020 to 2021 have been added. You can find guidance on working out 80% of your employees wages through the CJRS scheme. Expected week of childbirth (EWC) Actual date of childbirth*If left blank, will calculate on EWC entered above. Use our benefit calculator to check what you will be entitled to. Firstly, if a pay rise is due, you must not withhold it because of maternity leave. 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. If an employee is employed for less than 12 months, the calculation shall be based on the shorter period. There is a calculator to help you on the government website. If you’re pregnant and working, you’re entitled to maternity pay while you’re on maternity leave. We’ll send you a link to a feedback form. You’ll need to pay tax on any benefits you get during maternity, parental or adoptive leave. Fortunately, if you have to repay any contractual maternity pay you can ask to repay it in small instalments (Gov.uk, 2019; Maternity Action, 2019). This is calculated on gross earnings subject to class 1 national insurance contributions. 'Quotas are not significantly boosting number of women senior managers', Search jobs, franchise opportunities and articles on workingmums.co.uk, The Seasons Art Class Franchise Opportunity, Stigma still attached to taking extended paternity leave, Statutory pay rates likely to rise in 2021, but not by much, Why reducing stress in pregnancy is vital, Call for action on insecure work and its impact on pregnant women and new mums. My employers are calculating my maternity pay from the 15th week before my baby is due and eight weeks back. Take the last normal payday on or before the end of the Qualifying Week. read more, Childcare consultant Angela Spencer has some advice on the importance of reducing stress during pregnancy, including work-based stress. As an individual the total you get from both payments can’t be more than 18 weeks. 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. How is Maternity Pay Calculated if the Employee has had a Pay Rise? i have 3 months before I come off. 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…. Answer. This could include: No changes to how you work out their AWE will be needed where: Always calculate AWE based on all earnings actually paid to the employee within the relevant period, regardless of any over or underpaid wages in that period. Pay them 90% of their average weekly earnings (before tax). 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. Required fields are marked *, Dads still feel worried that they will be stigmatised at work for taking extended parental...read more, A report out this week focuses on gender stereotypes and the damaging role they play in...read more, A new survey by the CIPD shows the majority of dads still feel there is a lot of stigma attached to taking extended parental leave. This is usually the 8 week period before the qualifying week. The lower rate is paid if you help with your spouse's or civil partner's self-employment. So I did not receive a payment the next month but double the month after. 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. Statutory maternity pay rates. If they earn £116 or more in the tax year, they are eligible for SMP. Calculation of maternity pay Maternity pay is based on your average weekly earnings for the eight weeks prior to and including the 15th week before the expected week of childbirth. This is 90 payable days. You’re entitled to 90 per cent of your average weekly pre-tax earnings for the first six weeks. Some contractual benefits, such as childcare schemes provided by you, may be exempt from PAYE tax and National Insurance contributions. Rates, allowances and duties have been updated for the tax year 2018 to 2019. A glossary of all maternity-related The Health and Safety Executive has information for new and expectant mothers. 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. Rates, allowances and duties have been updated for the tax year 2016 to 2017. For the first six weeks, 90% of an employee’s average weekly earnings. How much maternity pay you get, and how long it lasts, depends on what type of maternity pay you’re entitled to:. Maternity pay and leave can be a complex area. The lower rate of Maternity Allowance is £27 per week for 14 weeks. You can change your cookie settings at any time. I have just recieved an e-mail from Hr saying my maternity pay was overpaid because when they calulted my usual earnings from before maternity pay, they erroneously included the amount I pay out pre-tax to an employee stock purchase program. 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. How is statutory maternity pay calculated? 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. 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. 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. For the first six weeks, 90% of an employee’s average weekly earnings. Do not round the figure up or down to whole pence. How does it work? 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. This is broken down into 26 weeks Ordinary Maternity Leave (OML), which is inclusive of compulsory leave and 26 weeks Additional Maternity Leave (AML). Add up all the earnings paid between 1 October 2020 and 30 November 2020: This may happen if you bring forward your employee’s normal payday because of bank holidays at Easter or Christmas. Employers are required to keep records containing prescribed information relating to each employee’s SMP for three years after the end of the tax year in which the maternity pay period ends. The value of childcare vouchers provided during the maternity pay period should not be deducted from the SMP. Statutory maternity pay can last 39 weeks, but it will end sooner if you go back to work before then. Our mission Partners Contact. 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. 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. For those adopting a child the rules are the same. Divide the earnings by the number of weeks wages actually paid, not the number of weeks in the relevant period. For example, if your annual salary was £12,000 then your full monthly salary before tax etc. Benefit Cap. Whilst every care has been taken in compiling this answer, workingmums.co.uk cannot be held responsible for any errors or omissions. Can not be held responsible for any errors or omissions rise is due gross annual salary was £12,000 your... Pays a maximum amount the qualifying week to Saturday ) before the week the baby is due, must! Use GOV.UK this length of maternity leave of benefits to such employees, as may... May be how is maternity pay calculated pay or SMP is paid for up to 20 weeks or 100 payable days of.... 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