Mat Leave

moneypuddle

I'm 27 weeks pregnant and have worked for the same comany for 5 years. My basic is £1666 gross and I earn an additional £600 gross per month from bonuses, one month in arrears.

Whenever I mention maternity pay to my boss, she either shrugs, or says 'oh I dont know the ins and outs'. We have no HR department and she is the only person I can ask. In the 5 years I've been there no other woman has gone on maternity leave, and since she's only owned the company for the last 3 years I really dont think she has a clue

I have a bad feeling that when I go on maternity leave, my pay is not going to be right so I'm trying to work out what I should expect to be paid so that I know if Im getting it right.

My baby is due 4th October. I plan (at the minute) to work up until 28th September. I've entered my figures into this calculator http://www.direct.gov.uk/dscript

My questions are:
1. I understand my first 6 weeks at paid at 90% of normal pay - is this with or without my bonus. Since my bonus is variable how would they know what this payment should be
2. My next 33 weeks would be paid ay SMP of £135.45 per week (which works to about £586 per month) - does this actually get paid weekly or monthly

I get paid at the end of each month, so I would assume:

At the end of Sep I get my usual basic, plus by bonus from Aug, so probably £2266 gross
At the end Oct I get 90% of my normal basic and bonus??
At the end of Nov I get 90% of my nomal basic and bonus for the first 2 weeks, then two weeks at SMP
And then from Dec onwards I'm on just the SMP

Sorry if that sounds really complex. I've always been a worried over money and just like things to be in place!

Any help would be massively appreciated

paddedjohn

I dont think your bonus comes into the equation unless your contract states otherwise.

Sorry it appears im wrong.

How your average weekly earnings are calculated

To qualify for SMP your average weekly earnings must be at least equal to the lower earnings limit (LEL). The LEL that applies to you is the one which is current on the Saturday at the end of your qualifying week. The LEL changes every year. The LEL is £107 a week in the 2012-13 tax year.
To calculate your average weekly earnings your employer will average your gross earnings over a period of at least eight weeks up to and including the last payday before the end of your qualifying week. The qualifying week is the 15th week before the week your baby is due. This period may vary depending on how often you are paid – weekly, monthly or other intervals.
For working out SMP purposes, ‘pay’ means gross pay that is due to you before any deductions. Your employer will take into account your gross pay that you received in the set period, as long as it counts for National Insurance (NI) contributions (or would count if you earned enough or were old enough to pay NI contributions).
If you get sick pay, overtime payments, bonus payments, arrears of pay or holiday pay this is all included to work out your SMP, if you actually get them in your set period. It is when you get paid the money that counts, not when it was actually earned.

moneypuddle

Thanks john! Where did that quote come from?

moneypuddle

Ah Ive just found it here http://www.direct.gov.uk/en/moneytaxandbenefits/benefitstaxcreditsandothersupport/expectingorbringingupchildren/dg_175917

Thank you!

chrisbur

Your qualyfying week is 17/6/12 to 23/6/12. The way to work out your average is to take the date of your normal payday that falls on or before the Saturday of this week (date 1) and the then go back to a payday that falls not less than eight weeks before this one, and take the date that falls one day after that payday (date 2). All payments recieved from date 1 up to and including date 2 should be added together and divided by 2. If for example you are paid on the 15th of the month then your wages for 15/6 and 15/5 would be added together and divided by 2. This is then multiplied by 12 and divided by 52 to get your weekly rate.

Regarding payment SMP should wherever possible be paid on the normal payday.

Savvy_Sue

Does the boss do the payroll, or is that contracted out? If contracted out, you'll probably find that it's fine, and you could ask if you could check your understanding with the payroll provider.

moneypuddle

Hi Savvy Sue. No she doesn't do it herself but its not contracted out. We have another girl in the office who does it, but she in her own words, knows 'sweet F A' about what she's supposed to do about maternity pay

I just wish some people cared more. :cool:

moneypuddle

chrisbur wrote: »

Your qualyfying week is 17/6/12 to 23/6/12. The way to work out your average is to take the date of your normal payday that falls on or before the Saturday of this week (date 1) and the then go back to a payday that falls not less than eight weeks before this one, and take the date that falls one day after that payday (date 2). All payments recieved from date 1 up to and including date 2 should be added together and divided by 2. If for example you are paid on the 15th of the month then your wages for 15/6 and 15/5 would be added together and divided by 2. This is then multiplied by 12 and divided by 52 to get your weekly rate.

Regarding payment SMP should wherever possible be paid on the normal payday.

Thanks Chris I'm trying my best to follow this. So I get paid on the last working day on each month. So if my qualifying week is 17/23/6 and I need to go back take the date of your normal payday that falls on or before the Saturday of this week (date 1) that would be the 31st May paydate and the then go back to a payday that falls not less than eight weeks before this one, so the 30th April?, and take the date that falls one day after that payday (date 2) which payday? All payments recieved from date 1 (ie 31st May?) up to and including date 2 (not sure which this is) should be added together and divided by 2. If for example you are paid on the 15th of the month then your wages for 15/6 and 15/5 would be added together and divided by 2. This is then multiplied by 12 and divided by 52 to get your weekly rate.

You lost me a bit there! Sorry! I'm guessing its my 30th April and 31 May paydates, we're combining (£1575.90 net and £1601.02 net), and divided by two (so £1588.46) Multiply by 12, and divide by 52 = £366.57

Does that seem right?

chrisbur

moneypuddle wrote: »

Thanks Chris I'm trying my best to follow this. So I get paid on the last working day on each month. So if my qualifying week is 17/23/6 and I need to go back take the date of your normal payday that falls on or before the Saturday of this week (date 1) that would be the 31st May paydate and the then go back to a payday that falls not less than eight weeks before this one, so the 30th April?, and take the date that falls one day after that payday (date 2) which payday? All payments recieved from date 1 (ie 31st May?) up to and including date 2 (not sure which this is) should be added together and divided by 2. If for example you are paid on the 15th of the month then your wages for 15/6 and 15/5 would be added together and divided by 2. This is then multiplied by 12 and divided by 52 to get your weekly rate.

You lost me a bit there! Sorry! I'm guessing its my 30th April and 31 May paydates, we're combining (£1575.90 net and £1601.02 net), and divided by two (so £1588.46) Multiply by 12, and divide by 52 = £366.57

Does that seem right?

Yes last working day payment would give 30/4 and 31/5 as the two months to use, but you need to use the gross pay not the net pay, otherwise method used is correct.

If your employer needs guidance on SMP there is an excellent employers guide which can be seen at....
http://www.hmrc.gov.uk/helpsheets/e15.pdf

thecoffeehouse204

If you input all your details into the following calculator you it will work out what SMP you are entitled to:-

SMP Calculator

If the girl in your office uses a payroll software it should work it all out for her but just in case point her in the direction of the calculator so you can make sure she gets it right first time.

embob74

Have you handed your MAT B1 form in to your employer? You should have done this by now. Ask for you entitlement in writing - it's so much easier to sort it out in advance.
Is it a small business? They can claim all of the SMP rate back so should be sorting that out too if they don't want to be out of pocket.