Introduction
Are you expecting a baby and wondering about your maternity pay options? This guide is here to help you understand the different types of maternity pay, how much you can receive, and when it starts and ends. Knowing your rights and entitlements can make a big difference in planning for your time off work. If you need further assistance, Contend’s highly trained AI legal experts are ready to support you in navigating these important issues. With Contend, you can access the easiest legal help in the UK.
If you’re preparing for a new baby, one of the important things to consider is maternity pay. Knowing how much you can receive and how long it lasts can help you plan for your time off work. Here’s a simple guide to help you understand your options.
Types of Maternity Pay
There are a few different types of maternity pay you might be entitled to:
- Statutory Maternity Pay (SMP): This is the minimum amount you can receive, and it lasts up to 39 weeks.
- Contractual Maternity Pay: This is any additional maternity pay offered by your employer, which should be outlined in your employment contract. It cannot be less than SMP.
- Maternity Allowance: If you don’t qualify for SMP, you may be eligible for Maternity Allowance. You can use the GOV.UK calculator to find out how much you may receive.
How Much is Statutory Maternity Pay?
SMP is paid in two parts over a total of 39 weeks:
- First 6 weeks: You’ll receive 90% of your average weekly pay (before tax).
- Next 33 weeks: You’ll receive either £184.03 per week or 90% of your average weekly pay, whichever is less.
Keep in mind that you may have to pay some tax and national insurance on this amount.
Example Scenarios
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Example 1: If Jo earns £215 a week, she will receive £193.50 for the first 6 weeks (90% of her pay). For the next 33 weeks, she will receive £184.03 since it’s less than 90% of her average pay.
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Example 2: If Grace earns £123 a week, she will receive £110.70 for the first 6 weeks. Since this is less than £184.03, she will continue to receive £110.70 for the next 33 weeks.
When Does Maternity Pay Start and End?
Your maternity pay begins on the same day as your maternity leave. You cannot receive it while still working or more than 11 weeks before your due date. If you don’t take maternity leave, your pay starts the day after your baby is born.
If you fall ill in the 4 weeks leading up to your due date, your maternity pay could start earlier. Remember, you can only receive SMP for a maximum of 39 weeks, but it will end sooner if you return to work before that.
Managing Your Pay Before Maternity Leave
If your pay varies, it’s essential to keep it as high as possible in the weeks leading up to your maternity leave. Your employer calculates your average pay based on about 8 weeks of earnings before the 15th week before your due date. Here are a few tips:
- Avoid taking unpaid leave during this time.
- Accept any extra shifts or hours offered.
- Take paid holiday for any sick days instead of unpaid sick leave.
If you believe your employer is trying to reduce your hours to lower your maternity pay, that could be considered discrimination. For personalized guidance, try Contend’s legal expert chat to help you understand your rights and options.
Working While on Maternity Pay
If you’re concerned about finances, you might want to work while receiving maternity pay, but there are some rules to keep in mind:
- Keeping in Touch Days (KIT days): You can work for your employer up to 10 KIT days without losing your maternity pay. These days need to be agreed upon with your employer, and you can only work them after the first 2 weeks following the birth of your baby. If you work more than 10 KIT days, you will lose a week of maternity pay for each extra day worked.
- Working for Another Employer: You can work for another employer while on maternity leave, provided you check your contract with your primary employer first. If you start working for another employer after having your baby, it may end your maternity pay unless specific conditions are met.
- Self-Employment: If you’re self-employed, you can do this work without affecting your SMP. However, it might impact any contractual maternity pay, so check your contract beforehand.
Conclusion
Understanding your maternity pay options is crucial for planning your time off work. Whether you’re entitled to statutory pay, contractual pay, or maternity allowance, knowing the details can help you make informed decisions. If you have specific questions about your situation, consider trying Contend’s legal expert chat for personalized guidance.
For more information, you can visit the official GOV.UK website or consult with your employer.
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