Pay Rise whilst on SMP

choclover

Hi,

I've been on maternity leave for 10 weeks and currently receive £124.49 a week SMP (as this is 90% of my average weekly earnings). I have received a letter my employer stating they are increasing the pay rate from the 1st of October for all employees in my job role to £6.30 following a merger.

I have read that as this pay rise is effective within the 26 weeks of ordinary maternity leave, my employer will have to recalculate the amount of SMP I receive.

My question is, what is the calculation they use? Will they take the same 8 weeks they used to calculate the £124.49 I currently get, and just change my hourly rate to work out what I would have earned if my rate was £6.30 at the time instead of £6.08 and then take a new average from that?

Thanks

Hi posted the above on the CBA board back in July and have not had a response. I've got paid this morning, the first one that's due to have the pay rise in effect, but the amount hasn't changed. I emailed the appropriate person at work basically asking the same question and they haven't replied either, so I'm not sure what to do. Am I entitled to my SMP being recalculated? Direct gov used to have some really useful information on there, but now its gov uk there's no information on there that I can find.

Thanks for your help

chrisbur

As I understand it any pay rise between the start of the eight week period that is used to work out SMP and the end of the maternity leave should be used to re-calculate the SMP rate being paid and adjusted back to the start of payments.

The following is from page 28 of....
http://www.hmrc.gov.uk/helpsheets/e15.pdf


"Earnings in the relevant period where pay rise awarded before or during maternity leave

A pay rise must not be withheld because a woman is on maternity leave. You must recalculate SMP AWE to take account of pay rises awarded, or which would have been awarded to a woman had she not been on maternity leave, if:

• you awarded a pay rise on or after 6 April 2005, or before that date had granted a pay rise which had not been put into payment by then, and

• the pay rise was effective from anytime between the start of the eight-week set period for calculating SMP and the end of the woman’s statutory maternity leave. (This is Ordinary Maternity Leave and Additional Maternity Leave.)"

choclover

Thanks chrisbur for the info, looks like I need to send HR a letter

Hmm71

Hope you get it sorted out choclover. You should be taking it easy on your maternity leave, not having to do your payroll's job for them!