Statutory Maternity Pay
Statutory Maternity Pay
What is Statutory Maternity Pay (SMP)
This is a payment which you are entitled to in the UK – if you have been employed continuously for 26 weeks – over six months prior to the 15th week before your baby is actually due, and you earn an average of £97 per week.
To qualify you need to comply with the Earnings Rule, and the Continuous Employment Rule
What is the Earnings Rule?
The Lowest Earning Limit – LEL is what you have to be being paid before you start paying National Insurance Contributions NI. You need to be earning at least £97 per week on average and this is before tax. If you also meet the Continuous Employment Rule you will then qualify for SMP
What is the Continuous Employment Rule?
Continuous employment means that you have worked without a break for a set period of time. To be eligible for SMP you will have needed to have worked for 26 weeks / over six months. You can have been off sick or the business may have been taken over by someone else, you will still be entitled to SMP.
What has the EWC Expected week of childbirth got to do with payments?
The EWC is used to work out exactly how much you will receive in payments
When does Maternity Statutory Pay start?
This will be paid on the date you have informed your employer that you wish to leave work and commence your maternity leave or on the date of your baby’s birth.
How is SMP paid?
This is paid the same way you were being paid before i.e. weekly or monthly and will be paid into your bank or building society account
How much is SMP?
6 weeks at 90% average gross weekly earnings
After that period 33 weeks at the lower standard rate of £124.88 or 90% average gross weekly earnings.
How long do I receive SMP for?
This can be paid by your employer for up to 39 weeks, over nine months or less if you decide to return to work earlier.
How is SMP worked out?
Your employer will work out your average gross ( before you pay out NI etc.) earnings over a period of time – this may be over months or weeks depending how you are paid but over at least eight weeks. If you usually get bonuses of overtime this will all be taken into account and averaged out. Even if you get a pay rise during your maternity leave this will be taken into account with the calculations.
How to I find the Maternity Pay calculator?
The UK Government website has a calculator which will help you with payments click here for the link. http://www.direct.gov.uk/maternity.dsb
If I disagree with my SMP what can I do?
Firstly talk to your employer and ask them how they came about the payment they have. If you aren’t able to agree you can contact HM Revenue and Customs help line on 0845 302 1479 for advice.
You can also contact:-
- Solicitors
- Citizens advice Bureau – CAB
- Trade unions
Are there any reasons why I wouldn’t receive Statutory Maternity Pay?
Yes there are a few reasons
- If you haven’t worked for the company long enough (but you may be entitled to MA)
- You do not earn the minimum per week to qualify ( you may be entitled to other benefits)
- You are self employed/ freelance
- You haven’t given the correct notice ie 28 days or medical evidence the MAT B1 form
- If you are in prison( you will get MA instead)
What if the company I am working for goes under who pays my SMP then?
If the company you work for becomes insolvent then you will need to contact the Statutory Payments Disputes Team on 0191 225 5221. As Her Majesty’s Revenue and Customs will take over payments once the company is declared insolvent.
What if my employer can’t afford Stat Mat Pay?
If your employer is unable to pay you SMP they will need to provide you with your SMP1 stating the reason for non payment. Your employer will need to return your MAT B1 from to you as well which you will then need to send to Jobcentre Plus with a claim form for MA
What if my employer gives me an SMP1?
This means they are unable to pay your SMP and you will need to claim MA through Jobcentre Plus
Who pays SMP if I have two part time jobs?
As long as you qualify both of your employers may be liable to pay you your SMP, however if they are not able to you may be able to receive Maternity Allowance
What is a MAT B1 form?
This is a form which your doctor or midwife will give you which you can show to your employer if they ask for proof of your pregnancy. The form gives the expected week of your baby’s birth.
How old do I have to be to qualify for Maternity Benefits?
There is no restriction on your age to receive payments as long as you qualify. If you do not qualify for SMP you may be entitled to Maternity Allowance
What do I do if I don’t qualify for SMP or Maternity Allowance?
If you think that you do not qualify for either SMP of MA you may be entitled to a Sure Start Maternity Grant
What is Maternity Allowance?
This is claimed through Jobcentre Plus when you do not qualify for SMP. It is a payment you can receive if for instance you have only recently been employed or are self employed.
How long is Maternity Allowance paid for?
MA is paid for a maximum of39 weeks; currently £124.88
How is MA paid?
MA is paid either every two weeks or monthly into your bank, building society or post office account. The payment day is linked to your NI number.
Where do I get an MA form from?
The form you will need is called a MA1 form and you can either call Jobcentre Plus on 0800 055 6688 (8.00 am to 6.00 pm Monday to Friday) or download one from the DWP website.
How is Maternity Allowance different to Statutory Maternity Pay?
The difference is mainly due to the qualifying work periods and continuity of employment
