Occupational maternity pay calculation

mariefab

Your employer is using the correct 2 payslips because your normal pay date is the last day of the month.


However, if your bonus is included on those payslips and liable for class 1 NICs (like the rest of your wages); they can't exclude the bonus for the purpose of the SMP calculation.
That said, whether, or not, they include it for the occupational maternity pay element depends on their own policy.

zombeana

Hmm, well ACAS told me that should not matter. They have moved the December payment every year since I have been here (4 years) so I don't see why it's an issue.

mariefab

http://www.hmrc.gov.uk/manuals/spmmanual/spm20825.htm

mariefab

Not sure if this relevant but I am an hourly paid employee with no holiday and I work term time only.


It's not relevant to the issue at hand, but what do you mean by this ^ ?

zombeana

Ok thank you that link is very clear. I wonder why ACAS told me conflicting information! At this point I am starting to get stressed out with being told different things I wish I'd never raised it now. Though the difference is over £150 per week which does seem a shame. This is due to the way they pay 'hourly' employees and how the weeks fall, I earnt a lot less in one month.


Re holiday - I don't get any holiday because they 'include' it in your hourly rate. So they pay me eg £8.20 per hour plus £1.60 holiday pay (not correct %). If you don't work you aren't paid, though I am still a contracted employee and have regular hours per week. It's 'bank' staff.

zombeana

A final question:

I get the above link is relevant for SMP, but we have an Occupational maternity pay scheme which states pay is calculated using the 8 weeks prior to qualifying week with no reference or exception to changes in dates of pay.

If our policy for maternity leave states Occupational maternity pay is calculated from the 8 weeks prior to the qualifying period, does the above HMRC rule still apply?


Some say it may not be worth the hassle - but the difference in my pay is over £150 per week for 18 weeks. That is a lot of money.

zombeana

Just wanted to add my contract does not specify that normal pay dates are the last working day of each month. It states:


'Your payment is as shown on your salary slip and is payable monthly in arrears by direct credit transfer directly into your bank account. '


The contract also states any contractual maternity pay is as per the policy, which as I mentioned above states nothing re normal pay dates only the '8 week period'.



... I also know for a fact my colleague had her December payment included in her maternity calculations last year (different HR boss) because she showed me it! She was due almost to the day that I am this year. I just find it very frustrating to lose £1000s! I already miss out on annual leave which could have given me another 30 days + off work. So I just want what I believe to be the correct payment!

Takeaway_Addict

zombeana wrote: »

Just wanted to add my contract does not specify that normal pay dates are the last working day of each month. It states:


'Your payment is as shown on your salary slip and is payable monthly in arrears by direct credit transfer directly into your bank account. '


The contract also states any contractual maternity pay is as per the policy, which as I mentioned above states nothing re normal pay dates only the '8 week period'.

I wouldn't have thought it would matter if they can show that the standard is to pay at a particular time of the month and the Christmas one is done as a special payment.

If the company are still saying no then the only way you could take this further is through a tribunal, which costs and you could still lose.

chrisbur

zombeana wrote: »

Just wanted to add my contract does not specify that normal pay dates are the last working day of each month. It states:


'Your payment is as shown on your salary slip and is payable monthly in arrears by direct credit transfer directly into your bank account. '


The contract also states any contractual maternity pay is as per the policy, which as I mentioned above states nothing re normal pay dates only the '8 week period'.



... I also know for a fact my colleague had her December payment included in her maternity calculations last year (different HR boss) because she showed me it! She was due almost to the day that I am this year. I just find it very frustrating to lose £1000s! I already miss out on annual leave which could have given me another 30 days + off work. So I just want what I believe to be the correct payment!

I think that the important phrase is "Qualifying week" Does your company policy have a definition of this and if so does it vary from the official SMP definition? If they have no definition or the same definition as the one for SMP then that does not change the QW and as the pay periods used to calculate SMP (the eight week period) is fixed by the QW dates then they also will not change.
Only if your company has a different definition of Qualifying week might this make a difference.

Regarding your friend without knowing the expected date of confinement I cannot calculate the qualifying week but I can say that it would not need much to change the QW. If the expected date of confinement had been 13/04/14 this would have been enough to move forward the QW so that December's pay would be included.

zombeana

chrisbur wrote: »

I think that the important phrase is "Qualifying week" Does your company policy have a definition of this and if so does it vary from the official SMP definition? If they have no definition or the same definition as the one for SMP then that does not change the QW and as the pay periods used to calculate SMP (the eight week period) is fixed by the QW dates then they also will not change.
Only if your company has a different definition of Qualifying week might this make a difference.

Regarding your friend without knowing the expected date of confinement I cannot calculate the qualifying week but I can say that it would not need much to change the QW. If the expected date of confinement had been 13/04/14 this would have been enough to move forward the QW so that December's pay would be included.

Thanks for your reply.
Re my friend - she is in fact the HR advisor who initially told me my Dec payment would be included! Unfortunately she is on long term sick and her work was passed to someone else who completely changed the calculation.


As for the qualifying week - I am bit unsure what you mean by this? I understand nothing can change the qualifying week. The policy refers to the qualifying week as the 8 weeks prior to the date (so 27th Dec in my case) but as I said, no reference to exclusions for movements in pay date.


I just find it frustrating because the pay date has been early for Christmas every single year - we never get paid on the 31st Dec in the 4 years I have been here and asking others, they say it has always been early! 2 days has cost me £2500!!


I might be fighting a losing battle here but I've asked my unison rep to calculate what they believe to be correct. I find it hard to accept such a huge loss when I was initially told, and budgeted my entire maternity leave based on a different calculation. From the same HR team!