Maternity Pay, Salary Sacrifice, Childcare Vouchers Frustration

Lloydy123

Hello, first ever post! I’m not entirely sure I have put in the right place. I’ve read what I can to see if there’s an answer already out there but nothing entirely answers my question. Hoping for you lovely people to shed some light :j
I’m due to go off on my second maternity leave, a while yet but I’m trying to figure out the confusion with childcare vouchers. My company do enhanced mat leave for 13 weeks at 100% NI based pay and 13 weeks at 50%.
My salary is reduced for pension and childcare so I understand that my pay on mat leave is based on NI pay so a lower figure. However my company then insist they can continue to take out, from this lowered figure, the childcare vouchers. Is this right as it feels like I’m paying twice?
I’m thinking of coming out the scheme regardless of the fact they will pay the vouchers when I’m on SMP and the tax benefits.
I have a reduced pay on enhanced mat leave, then I still have the vouchers deducted from this and have to pay for 6 months. Compared to 3 months worth of contributions by employer on SMP. Surely no brainer?

Please help.

They don’t offer the info to come out pre mat leave, you have to do your research. Feels a bit unfair overall. This also seems to be a change in policy, couple of years ago they paid the vouchers the whole way through. What happened to change this.
HR insist they are doing the right thing.

[Deleted User]

What is NI based pay?

Lloydy123

National Insurance based pay. So the amount you get paid for national insurance. Which is lower as has any salary sacrifice arrangement taken out.

[Deleted User]

How is that enhanced pay! Thought they had to fund them on maternity but google found this change as a result of an employment tribunal https://www.lawgazette.co.uk/legal-updates/childcare-vouchers-and-maternity-leave/5055128.article

Lloydy123

Thanks I will look.
Sorry I meant an enhanced scheme in addition to SMP. But yes it’s not entirely full pay.

RhiIndiah

Hi Lloyd,

I am in exactly the same position and what I was expecting for my maternity pay is £2304 less because I didn't know I should have opted out of the childcare vouchers during my qualifying period. I get £243 a month in vouchers , plus I am then having them deducted throughout the 39 weeks of SMP so it sounds the same as you. Have you managed to find any answers?

I am exactly the same as you -

Elizas

I have just fallen in to same trap as my employer didn’t advise me about this.

Has anyone found out any legal solutions? Seems like discrimination to me as this wouldn’t happen to a man!

LilElvis

Elizas wrote: »

I have just fallen in to same trap as my employer didn’t advise me about this.

Has anyone found out any legal solutions? Seems like discrimination to me as this wouldn’t happen to a man!

No sex discrimination as the father can actually take the majority of the maternity leave, bar the mandatory 2 weeks (more for factory work) that the mother has to take post birth.

spadoosh

Elizas wrote: »

I have just fallen in to same trap as my employer didn!!!8217;t advise me about this.

Has anyone found out any legal solutions? Seems like discrimination to me as this wouldn!!!8217;t happen to a man!

It would if the parents went down the shared parental leave route. As it is most women take the parental leave as such more women are effected, its not discrimination, its voluntary circumstance.

Discrimination is a mother being able to dictate how much parental leave the father has.

The fathers entitlement is 2 weeks SPP unless the mother sacrifices some of her SMP. The mothers entitlement is 39 weeks unless she chooses to sacrifice some to the father. Thats discrimination.