Unless you have given your employee additional benefits above SMP. You get this if you paid 45,000 or less in Class 1 National Insurance (ignoring any reductions like Employment Allowance in the last . Building up holiday on maternity leave. All employers can recover some, if not all, of the statutory maternity pay (SMP), that they pay to employees. What is included in an employee's "normal weekly earnings" for the purposes of calculating statutory maternity pay? Maternity Allowance is paid at a flat rate and is not linked to your salary. Entitlement to SMP does not affect your right to any other maternity payments. 19/10/2021 18:20. How long is Maternity Leave? Where this pay does not . They must earn on average at least 112 a week. If it is, then legally it may be withheld and as long Weeks 5 - 6 are paid at 90 per cent of salary if eligible, and weeks 7 - 18 at 50 per cent of salary plus the standard Statutory Maternity Pay rate of 151.97 per week. 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. ! Thanks (0) By fawltybasil2575. Statutory Maternity Pay (SMP): paid by your employer for 39 weeks if you meet the qualifying conditions. Where it is not reasonably practicable for your employee to give you statutory notice, they must do so as soon as it is. For the following 33 weeks You get whichever is lower: 156.66 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. However, to attract and retain female employees, some employers will offer an enhanced level of maternity pay. The SMP Rates for 2020-2021 are: First six weeks: 90% of your average weekly earnings. I'm in London. The first six weeks: 90% of your employee's average weekly earnings before tax. 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. payment for weeks 1-6 equates to 90% of the average weekly earnings (AWE) payment for weeks 7-39 equates to the current amount of SMP (156.66 for 2022/23), or 90% of AWE, whichever is lower. You might only give an additional 10 per week in occupational maternity pay. The shared parental leave is also the same as the maternity leave. 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 As an employer, you can usually reclaim 92% of employees' SMP, Paternity, Adoption and Shared Parental Pay. For the first four weeks, you will be paid at 100 per cent of salary if eligible. Maternity leave and maternity pay. 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. To avoid repayment, we would otherwise require an Employee to work the notice period stated in their contact of employment. Manage your tracked topics > About this resource Status This resource is kept under review and updated . Step 1 - Setup or Calculate Phase. 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. Have worked for you continuously for at . During the next 33 weeks of maternity leave Pay whichever of these is lower: 156.66 90% of their average weekly earnings (before tax) You must give your employer evidence that you are pregnant. The amount of SMP paid for the first 6 weeks of the Maternity Pay Period. On this screen, you need to calculate and enter the average monthly salary for the employee during the qualifying period. Enhanced maternity pay If you wish, you can offer enhanced maternity pay arrangements to attract and retain employees. 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. 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. SMP is paid at two rates: for the first six weeks you get 90% of your average pay. This may affect both the 90% rate and the entitlement to the standard rate. With Statutory Maternity Pay (SMP) for the 2020/21 tax year, you'll receive 90% of your average weekly salary for the first six weeks then either 151.97 or 90% of your average weekly salary for 33 weeks (depending on which is the lowest). 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. 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 . Statutory maternity pay (SMP) will also. The findings, from a report by XpertHR, show encouraging signs that employers are taking support for their working parents more seriously. Do I need to include the Maternity Allowance on my tax return? The payment should be made to employees through payroll . We've gathered together everything you need to help you understand the qualifying rules and entitlement, as well as how to record it. 4,323.00 + 21.623 + 21.62) 6 52 = 503.80. What you can reclaim. You can reclaim 103% if your business qualifies for Small Employers' Relief. tools. SMP is paid for 39 weeks. Q. 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. Is payment of any part of your organisation's enhanced maternity pay dependent on an employee's return to work following her maternity leave? For the first 6 weeks You get 90% of your average weekly earnings. Step 1 (a) - Average Salary for SMP. However, only a quarter offer enhanced shared parental pay, according to XpertHR. (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?). 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). Thankyou. two weeks at 9/10ths of a week's pay (SMP offset) 12 weeks at half pay (+ SMP). A 1% pay award is then applied from a date between the start of the relevant period and the end of the employee's MPP. Additional Maternity Leave starts. Give you proof that they're pregnant - usually a MATB1 certificate, which should be provided by their midwife. The amount the employee is due to receive before any deductions are made. 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. Which elements of enhanced maternity pay are dependent on the employee's return to work? Revised calculation. (52 weeks) will be required to repay the difference between the enhanced rate of maternity pay that they have received and the minimum level of maternity pay, SMP, to which they would otherwise have been entitled. Once you have qualified for SMP your employer must pay it to you even if you leave employment with them. The AWE is recalculated as 4,366.24 (i.e. Details of any enhanced maternity pay should be included in company documents provided to staff. And just like SMP, you pay it for a set amount of time. 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. If you're only getting SMP, that will be paid as 90% of your average weekly earnings for the first six weeks, but drops to the lower of 90% of your weekly earnings or 156.66. What is Maternity Allowance? This calculates automatically and reduces your liability and the amount you owe to HMRC. This has the effect of increasing earnings for each payment in the relevant period by 21.62. Otherwise, you can recover 92%. Your employer is able to claim the money back from HM Revenue & Customs (HMRC). The issue is whether the particular bonus can properly be called "remuneration". 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. SMP is paid for 39 weeks and is paid at two rates: Maternity Pay (or in some cases maternity allowance) being payable instead. 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). how to reduce walking noise . But it would seem very unlikely they'd pay you SMP on top of full pay. Your average pay is based on your earnings when you are approximately 18 to 26 weeks' pregnant. Enhanced Maternity Pay is correct at 31/3/2022. SMP - an introduction. 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 From the Statutory Maternity Pay section, select the pencil icon for the SMP record you wish to edit. 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%. 90% of the employee's AWE for the first 6 weeks 156.66 or 90% of their AWE (whichever is lower) for the remaining weeks SMP paid part weekly You can pay SMP in part weeks if it helps to. Statutory Maternity Pay (SMP) What is Statutory Maternity Pay? For example, this might be six months on full or half pay. 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. Your employer's policy and/or the letter they send you confirming your maternity pay details should be clear. How much is unpaid Enhanced maternity pay If you wish, you can offer enhanced maternity pay arrangements to attract and retain employees. I understand that I receive SMP for 39 weeks. 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. calculate your maternity leave take-home pay. SMP - eligibility. The LEL for 2013/2014 is 109 per week or 473 per month. What is enhanced maternity pay (EMP)? Both SMP and any enhanced maternity pay you get from your employer will be based on your salary. I'm also stuck on how to include maternity pay into my tax return? SMP - how it is worked out. You must give your employer notice of your intention to . Usually, you give staff occupational maternity pay under the condition that they return to work after maternity leave. If a business is eligible for Small Employers' Relief, it can reclaim 103%. To support employees undertaking maternity leave, the Company offers enhanced maternity pay (EMP). To be eligible, the employee must: Earn at least 116 per week Give sufficient notice 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. If you're classed as a small employer, you can recover 100% plus 3% in small employers' relief. It's an optional payment that you choose to give your staff on top of SMP. Enhanced Maternity Pay is offered by almost two thirds of UK Organisations. You can record this by following the steps below: Select Payroll, then select Pay Runs. Sub: Letter For Rejoining Job. Entitlement to our enhanced maternity pay. Alternatively, 45.9% of businesses offered financial benefits to those returning from maternity leave, such as a bonus. 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. Of these organisations, three in 10 offer full pay for three months, although two in 10 do so for . Mothers will get 90% of average weekly earnings (before tax) for the first 6 weeks, then 151.97 or 90% of average weekly. The next 33 weeks: 145.18 per week, or 90% of your employee's average weekly earnings (whichever is lower) Use Croner's free maternity pay calculator to work out SMP for you or your staff. SMP is not payable in addition to contractual payment. 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. The most common option for employers is to offer full pay for the first six weeks or more when the employee takes maternity leave, instead of 90% of their average weekly earnings (before tax) for the first six weeks. The meeting will include discussions on the following points: . Statutory maternity pay (SMP) You can easily process statutory maternity pay (SMP) by using Payroll to automatically calculate it for you. What is the minimum period for which an employee must return to work in order to avoid having to repay any of her . 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. 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. It is possible to agree with your employer to have the occupational pay entitlement paid in a different way, for example . You can also find information from GOV.UK Qualifying rules Entitlement This is the form MATB1 that you will receive from your midwife around week 21 of your pregnancy. Statutory Maternity Pay (SMP) is paid for 39 weeks. Normally enhanced packages are inclusive of SMP entitlement, but not always. 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. You might know it as enhanced maternity pay or contractual maternity pay. check if you're eligible for maternity leave & pay. Employees on maternity leave accrue annual leave and are entitled to paid leave in addition to SMP (including bank holidays). They may pay more than statutory maternity pay for a fixed period. SMP can also be offset against other contractual remuneration such as contractual notice pay and enhanced contractual redundancy pay (but not against statutory . Statutory Maternity Pay (SMP) is paid for up to 39 weeks. Statutory Maternity Pay (SMP) and Maternity Allowance (MA) - 2022/23 tax year Statutory Maternity Pay Women who are eligible for Statutory Maternity Pay can receive a maximum of 39 weeks' pay. Occupational maternity pay is also paid for a continuous period of up to 39 weeks. When additional maternity leave is taken, the same rules apply in relation to remuneration, although SMP will have been exhausted. A3: This will be followed by 21 weeks' Statutory Maternity Pay (SMP) (where eligible). I get full pay for 3 months, 50% pay for 3 months, SMP for 3 months and 3 months unpaid. . 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%. . It's paid in the same way as your normal wages with tax and National Insurance deducted at source. . Use the SMP calculator to work out an employee's maternity leave and pay. Its survey of 375 organisations that collectively employ almost one million staff found that the majority of firms offer maternity pay (63.5%) and paternity pay (60.3%) that is above the legal minimum. Family-friendly rights and support. 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. 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 For example, you could: pay more than SMP over a certain period, e.g. In the UK, Statutory Maternity Pay (SMP) is paid for up to 39 weeks. It is paid on the same schedule as your employees wages, whether weekly or monthly. This must be the case on the Saturday at the end of your qualifying week. This is over and above SMP. Statutory Maternity Pay (SMP) is paid for employees that are on maternity leave for up to 39 weeks. You just need your due date and salary to see an initial Statutory Maternity Pay forecast. During the first 6 weeks of maternity leave Pay them 90% of their average weekly earnings (before tax). If you decide to take a year's maternity leave and claim SMP, the last 13 weeks will be unpaid. If you can't take your holiday because you're on maternity leave, your employer should let you carry over up to 5.6 weeks of unused days (28 days if. 10th Sep 2018 14:05 @ @ Hanlouravo. If your business does not offer enhanced maternity pay, it must pay Statutory Maternity Pay (SMP). We were hoping to so shared parental but my husbands company only pay statutory so not sure we will be able to. A4: The 12 weeks of half occupational maternity pay is only payable on condition that the teacher returns to work for at least 13 weeks. The remaining 13 weeks' leave are unpaid. A contractual obligation to pay enhanced maternity pay for the same week in which SMP is due is offset by any SMP received, i.e. Choose " Setup " and click " Next ". This is often referred to as occupational or contractual maternity pay. A. Select a pay run, then select the pencil icon to edit the details of the employee in question. To continue reading, register for free access now. It is 90% of the average weekly earnings. However, there was considerable variation in how employers . For example, you could: pay more than SMP over a certain period, eg 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 work 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. At the end of maternity leave, your employee doesn't have to return to work and doesn't have to repay their SMP. nhs maternity pay . However, there was a wide variation in how employers enhance pay for new parents. Employers can generally reclaim 92% of employees' Statutory Maternity Pay (SMP), Shared Parental Pay, Paternity, and Adoption pay from the government. Select Statutory Payments. EMP is not a contractual benefit and the Company reserves discretion to amend or remove the EMP scheme at any time. I am on maternity leave and I have been receiving SMP and CMP (Contractual Maternity Pay). You can alter your pay details or maternity scheme to get a . 13 weeks' unpaid leave. weeks that is in addition to SMP. Enhanced Maternity Pay. SMP - circumstances that may affect your payments. 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. 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. If there is enough pay history on the system you can click " Calculate Average Earnings for SMP . You build up holiday as normal while you're on maternity leave. I started my maternity leave in Spring 2021. 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