We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Maternity pay calculation

Hi
I'm not sure whether this something specific to each company but does anyone know whether maternity pay is calculated as an average of ex previous months or whether it's based on the last months pay prior to leave?
Thanks
Becky

Comments

  • static266
    static266 Posts: 16 Forumite
    Second Anniversary 10 Posts Photogenic
    For my wife I believe it was an average of the previous 12 weeks. 
  • This explains the pay periods used for calculating SMP (average weekly earnings): https://www.gov.uk/guidance/statutory-maternity-pay-manually-calculate-your-employees-payments
  • chrisbur
    chrisbur Posts: 4,281 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    edited 11 March 2021 at 8:57AM
    There is a calculator here....
    https://www.gov.uk/maternity-paternity-calculator

    This gives you the amount that your employer has to legally pay.  Broadly 90% of the average earnings over the 8 weeks up to the qualifying week which is 15 weeks before the expected date of birth.  They can pay more than this so could use a different method so long as this minimum payment is made.

    Also the SMP will have to be re-calculated later if there is a pay rise.  Details here under.... Employee earnings affected by a pay rise   at....
    https://www.gov.uk/guidance/statutory-maternity-pay-employee-circumstances-that-affect-payment#employee-earnings-affected-by-a-pay-rise
  • Thanks for the replies. I am entitled to 26 weeks full pay. The reason I ask if it's an average of previous months is I'm due a bonus and pay rise the month previous to maternity leave starting so I wondered if this might be included. It's a long shot but could certainly be a nice up pay.
  • chrisbur
    chrisbur Posts: 4,281 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    Thanks for the replies. I am entitled to 26 weeks full pay. The reason I ask if it's an average of previous months is I'm due a bonus and pay rise the month previous to maternity leave starting so I wondered if this might be included. It's a long shot but could certainly be a nice up pay.
    In this case the method used to calculate the maternity pay up to your employer though I would expect the details of how it is done would be available in your contract or some terms of employment book.  As said before this payment must be at least equal to the SMP figure so if for example the bonus was not included but it fell so that it was included in the SMP calculation there might be some extra to pay, also any pay increases might also affect the amount due and certainly would if the bonus affected it.
    Probably best to wait until you know what the weekly rate is going to be then run the figures through the SMP calculator to see how they compare.  
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 352.9K Banking & Borrowing
  • 253.9K Reduce Debt & Boost Income
  • 454.7K Spending & Discounts
  • 246K Work, Benefits & Business
  • 602.1K Mortgages, Homes & Bills
  • 177.8K Life & Family
  • 259.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.