Maternity pay calculation

OlderSaver

First off, sorry if this is in the wrong forum.

Other half gets paid by the hour national minimum wage for adult (£7.50) does 8 hours per day, 2 days per week (£120) every week.

We have baby due on 30 march. But the HMRC says she only earns £113 perweek and I'm wondering if anyone can confirm if this is correct?

She is paid on the last working day of each month. So what would you expect her monthly wages before tax to be for August, September, October November, and December? Because I think the way she is paid doesn't fit the way HMRC calculation on weekly pay thinks is should.

Her pay for Rach month at the end of the month only include 2 weeks of that month and 2 from the end of the month before. It means she misses the minimum payment because of maths not actually reality, is this just how it is our shoot we query HMRC with the info on what dates are included in the pay slip?

Thanks

anmarj

You state she is paid monthly on the last working day of month, but wage only has two from month previous and two for current, that makes four, if she was paid monthly, some months would be equilivalnt of five weeks money. You may need to estabish if she is paid four weekly or calender monthly.

Darksparkle

What do you mean by the HMRC say it’s £113 per week? Who at HMRC has said this?

Does she not get payslips to show her earnings?

kingfisherblue

Does she actually receive £120 a week? Or does she have an unpaid break each day, which would reduce her pay?

OlderSaver

Thanks all.

It is monthly, as September had the following weeks ending
20.Aug 27.Aug 3.Sep 10.Sep 17.Sep
But the qualifying week asks for the first payment after 30 Sept. Because after the 30th the only pay packets were end of November, a 4 week month where income was £480 and December again 4 week and £480. FYI September pay was £600.

I think the HMRC say they calculate as follows
Add 2months pay together (480+480=960) then *6 (960*6=5760) to calculate yearly pay, then divide by 12 (5760/12=
110.77)

I have all last year's pay and not once did she earn less than 120, some months she actually took more all pre tax.
I just think it seems unfair to say she doesn't qualify when the maths is the reason, and facts are ignored.

chrisbur

OlderSaver wrote: »

First off, sorry if this is in the wrong forum.

Other half gets paid by the hour national minimum wage for adult (£7.50) does 8 hours per day, 2 days per week (£120) every week.

We have baby due on 30 march. But the HMRC says she only earns £113 perweek and I'm wondering if anyone can confirm if this is correct?

She is paid on the last working day of each month. So what would you expect her monthly wages before tax to be for August, September, October November, and December? Because I think the way she is paid doesn't fit the way HMRC calculation on weekly pay thinks is should.

Her pay for Rach month at the end of the month only include 2 weeks of that month and 2 from the end of the month before. It means she misses the minimum payment because of maths not actually reality, is this just how it is our shoot we query HMRC with the info on what dates are included in the pay slip?

Thanks

I assume that you are referring to entitlement to statutory maternity pay.
How the monthly pay is made up does not matter, it is the gross payments made within a certain period that are used to work out entitlement to SMP, this usually means two months pay for monthly paid. The rate at which it is paid uses the same period.
You can put the figures into the following to work it out for yourself.
https://www.gov.uk/maternity-paternity-calculator
This will tell you if entitled and what the payment will be.

Have just seen your reply about pay being sometimes for 4 weeks and other times for 5 weeks. As the months are fixed by the expected date of childbirth and the two months are ones for only four weeks I am afraid I can see no way round this unfortunate situation. Though the claim for maternity allowance is decided differently so hopefully this should be OK. The employer should issue an SMP1 form and return the MatB1 form to make a claim.
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/401639/smp1.pdf

Darksparkle

If it’s next pay day after 30th Sept why are you not including the pay for end of October?

chrisbur

OlderSaver wrote: »

Thanks all.


But the qualifying week asks for the first payment after 30 Sept. Because after the 30th the only pay packets were end of November, a 4 week month where income was £480 and December again 4 week and £480. FYI September pay was £600.


.

Just noticed that you seem to have missed out October what was the payment for this month?

OlderSaver

Sorry Oct £280 Nov £480 which is the month they use.

They called to say the Maths is

£960 * 6 = £5760
£5760 / 52 = £110.77

Even though she has never taken home less than £120 per week.

I can't believe they even screw you over on something like this.

Darksparkle

Its got nothing to do with anyone being screwed over. There!!!8217;s set criteria and she needs to meet that criteria.

What pay period does October & November cover? What days does she work?

Cant she claim maternity allowance instead?

OlderSaver

I realise the criteria thing, but the way it is set out online says:
To qualify for SMP you must:

-earn on average at least £113 a week
-give the correct notice
-give proof you’re pregnant
-have worked for your employer continuously for at least 26 weeks continuing into the ‘qualifying week’ - the 15th week before the expected week of childbirth
You can’t get SMP if you go into police custody during your maternity pay period. It won’t restart when you’re discharged.

Note £113, not £122.42 which you need to earn if you actually want to make it £113 per week.

Interestingly if we were due in Feb because she was paid for the 5 weeks in September and that would have been used to calculate the wages, she would be well over the £113. So people are being screwed because of Maths, and not actual real life.

£600 + £480 = £1080
£1080 *6 = £6480
£6480 / 52 = £124.62