Occupational Maternity Pay

crookey5389

I am pregnant and my company is offering me half pay + SMP for three months. I can extend the half pay over a longer period. How can I calculate how much I would earn each month if I spread it over a longer period? I am considering spreading it over eight months.

Marcon

crookey5389 said:

I am pregnant and my company is offering me half pay + SMP for three months. I can extend the half pay over a longer period. How can I calculate how much I would earn each month if I spread it over a longer period? I am considering spreading it over eight months.

Half pay for 3 months is a quarter of your annual salary. Divide that quarter salary by 8 and you've got the monthly amount in respect of your half pay.

If this all happens within the same tax year, then overall it will have no impact on your income tax position. It could impact on your NI contributions, but without knowing the numbers, it's impossible to comment meaningfully.

crookey5389

Surely full pay for 3 months is a quarter of annual salary, so half pay would be even less?

Marcon

crookey5389 said:

Surely full pay for 3 months is a quarter of annual salary, so half pay would be even less?

Sorry, absent minded typing! Half pay for 3 months is an eighth of your annual salary, so divide that by 8 to get the monthly amount.

TheSpiddalKid

It doesn't quite work out as half salary due to the way maternity pay works. Your employer still has to pay 90% of average earnings for the first 6 weeks. So it may be you only have circa 6 weeks worth of half pay (less SMP) to spread out.