Introduction to Statutory Maternity Pay
Statutory Maternity Pay is a legal entitlement for pregnant employees in the UK, providing financial support during maternity leave. The payment is made by the employer and is subject to certain eligibility criteria.
To qualify for Statutory Maternity Pay, an employee must have been working for their employer for at least 26 weeks by the end of the 15th week before the baby is due, and must also earn at least the lower earnings limit for National Insurance contributions.
Eligibility Criteria for Statutory Maternity Pay
In addition to the 26-week employment requirement, employees must also provide their employer with the correct notice and proof of pregnancy. This typically involves providing a MAT B1 certificate from a doctor or midwife, which confirms the pregnancy and expected due date.
Employees who are self-employed or on a fixed-term contract may not be eligible for Statutory Maternity Pay, but may be entitled to other benefits such as Maternity Allowance.
How Statutory Maternity Pay is Calculated
The amount of Statutory Maternity Pay an employee receives depends on their average weekly earnings. For the first six weeks, the payment is 90% of average weekly earnings, and for the remaining 33 weeks, the payment is a fixed rate or 90% of average weekly earnings, whichever is lower.
The fixed rate is set by the government and is typically reviewed annually. Employers can recover some or all of the Statutory Maternity Pay they pay to employees through the PAYE tax system.
Notice and Payment Details for Statutory Maternity Pay
Employees must provide their employer with at least 28 days' notice of their intention to take maternity leave and receive Statutory Maternity Pay. The notice should include the expected date of childbirth and the date the employee intends to start their maternity leave.
Statutory Maternity Pay is usually paid in the same way as an employee's regular salary, and is subject to tax and National Insurance deductions. Employees can choose to receive their Statutory Maternity Pay in a lump sum or as a series of regular payments.
Other Benefits and Entitlements for New Mothers
In addition to Statutory Maternity Pay, new mothers may be entitled to other benefits and entitlements, such as maternity leave, flexible working arrangements, and breastfeeding support. Employers are also required to provide a safe and healthy working environment for pregnant employees and new mothers.
Employees who are not eligible for Statutory Maternity Pay may be able to claim other benefits, such as Maternity Allowance or Universal Credit. It is essential for new mothers to understand their entitlements and to seek advice from their employer or a benefits advisor if necessary.
Frequently Asked Questions
How much is Statutory Maternity Pay?
The amount of Statutory Maternity Pay depends on average weekly earnings, with 90% paid for the first six weeks and a fixed rate or 90% of average weekly earnings for the remaining 33 weeks.
How long do I get Statutory Maternity Pay for?
Statutory Maternity Pay is paid for up to 39 weeks, with the first six weeks paid at 90% of average weekly earnings and the remaining 33 weeks paid at a fixed rate or 90% of average weekly earnings.
Do I need to repay Statutory Maternity Pay if I don't return to work?
No, employees do not need to repay Statutory Maternity Pay if they do not return to work after their maternity leave.
Can I work while receiving Statutory Maternity Pay?
Yes, employees can work while receiving Statutory Maternity Pay, but they must provide their employer with at least 28 days' notice of their intention to return to work.
How do I claim Statutory Maternity Pay?
Employees should provide their employer with the correct notice and proof of pregnancy, and their employer will then make the necessary payments.
Is Statutory Maternity Pay taxable?
Yes, Statutory Maternity Pay is subject to tax and National Insurance deductions, just like regular salary payments.