Maternity leave pay differs slightly from maternity leave when it comes to eligibility. Expectant mums can often be confused by the regulations regarding statutory maternity pay, particularly where the current employer has differing rules on payment. Where can mums-to-be go to find out what they are entitled to?
Maternity Leave Pay in the UK
Statutory maternity pay is often complicated by the terms and conditions offered by an employer. The most basic level of maternity pay is payable to employees who have been employed continuously in their current job for 26 weeks before the 15th week before the due date. To clarify, if the expectant mother was employed in her current job 41 weeks before the due date, and has not had a break in employment, she should be eligible for statutory maternity pay.
In addition, the employee must have earned wages above the lower earnings limit. For the tax year 2010-11, this is £97 per week. This is the minimum limit at which National Insurance becomes payable. If contributions have not been made because the wages earned were too low, maternity pay will not be paid. These rules on statutory maternity pay are are covered in further detail on the Directgov website.
If the mum-to-be has worked for the sufficient period and earned wages above the minimum level, she can claim statutory maternity pay. In order to claim, the employee needs to inform her employer that she wishes to claim and when she wants the maternity pay to commence. The employee will also need to provide medical evidence of the pregnancy and due date. This is normally via the MATB1 form.
How Much is Statutory Maternity Pay?
Expectant mothers should always check their contract of employment or staff guidebook to see if their current employer offers improved terms and conditions, compared to statutory maternity pay. The basic level of pay is currently 90% of gross weekly earnings for the first six weeks, and £124.88 or 90% of gross weekly earnings thereafter (which ever is the lower) for the remaining 33 weeks. "Gross" earnings are those before any deductions have been taken out, tax for example. These figures are for the tax year 2010-11.
The payment of maternity pay is usually handled in exactly the same way as the employer normally pays wages. So monthly or weekly pay arrangements will stay in place and any bank accounts used or payment dates will continue to operate exactly as they had previously.
There are certain circumstances that can affect maternity pay, such as the number of "keep in touch" days worked. Those on maternity leave receiving maternity pay are allowed to work for 10 days during the leave in order to "keep in touch" with the employer. However, if more than 10 days are worked, statutory maternity pay will not be paid for any week where additional days have been worked. Voluntary work will not normally affect maternity pay payments.
It is extremely important for mums to be to check their current terms of employment when considering maternity leave pay. While statutory maternity pay will represent the minimal entitlement, employees should always check their own terms and speak to human resource departments to establish what they need to do, and by when. Rules for eligibility should be checked as well as the actual payment terms. This information should be established as early as possible, maternity leave pay could be the sole household income for some families, so organising it and budgeting accordingly should be a priority.
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