Salary level for max. maternity pay?

Cambridge_Bumps

Hi

I'll be taking maternity pay from early 2009 & want to see if I should increase the amount that my husband & I currently pay ourselves so that we can claim the maximum amount of SMP. We own a limited company & currently each get £100/week. Am I right in thinking that I would need to increase this to around £130 to qualify for the current full SMP rate? This would obviously mean that we'd each pay some tax but this should be written off by the fact that we'd receive 100% of the SMP as we are a small employer.

Does this seem right? Any help greatly appreciated.

Victoria

brazilianwax

The Government reimburses employers paying SMP to employees at 104%

Not sure whether this would apply in your situation though

cosyc

YOu need to earn over the lower earnings level in the eight weeks before the 15th week before you babay is due.


Women expecting a baby on or after 6 April 2008 who satisfy the qualifying conditions are entitled to a maximum of 39 weeks SMP. These include having average weekly earnings of:

• £87 if their baby is due between 15 July 2007 and 19 July 2008
• £90 if their baby is due between 20 July 2008 and 18 July 2009

However if you are a director there are special rules if you are paid by a formal vote. If not just increase your wages to as high as you can afford then you can have 90% back as smp for 6 weeks!