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  • FIRST POST
    • Caro2882
    • By Caro2882 15th Apr 19, 6:07 PM
    • 4Posts
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    Caro2882
    Maternity Pay
    • #1
    • 15th Apr 19, 6:07 PM
    Maternity Pay 15th Apr 19 at 6:07 PM
    Hi, I have been told that my company calculate maternity pay on the entire year before the qualifying week and do not include overtime in pay considered. I have read a government document and it says overtime should be considered and the period considered should be the 8 weeks before the qualifying week. Can a company policy decide they will consider the entire year, and most importantly can they discount overtime pay even if you have reliably and consistently worked overtime? Many thanks for any help!!
Page 1
    • sheramber
    • By sheramber 15th Apr 19, 7:58 PM
    • 6,189 Posts
    • 4,678 Thanks
    sheramber
    • #2
    • 15th Apr 19, 7:58 PM
    • #2
    • 15th Apr 19, 7:58 PM
    Are you talking about Statutory Sick pay or Contractual Maternity Pay?
    • calcotti
    • By calcotti 15th Apr 19, 8:24 PM
    • 2,193 Posts
    • 1,471 Thanks
    calcotti
    • #3
    • 15th Apr 19, 8:24 PM
    • #3
    • 15th Apr 19, 8:24 PM
    For Statutory Maternity Pay the 3mployer must calculate you4 entitlement in accordance with the rules. They cannot opt to do it differently.

    https://www.gov.uk/guidance/statutory-maternity-pay-manually-calculate-your-employees-payments
    • Caro2882
    • By Caro2882 17th Apr 19, 7:13 PM
    • 4 Posts
    • 0 Thanks
    Caro2882
    • #4
    • 17th Apr 19, 7:13 PM
    • #4
    • 17th Apr 19, 7:13 PM
    Thank you, thatís just what I thought. I have a pregnant friend who has worked £1800 overtime paid in what we assumed were the qualifying 8 weeks and the company have now told her they calculate from the whole 12 months average pay prior to birth and donít include any overtime.
    • chrisbur
    • By chrisbur 17th Apr 19, 7:55 PM
    • 3,145 Posts
    • 1,720 Thanks
    chrisbur
    • #5
    • 17th Apr 19, 7:55 PM
    • #5
    • 17th Apr 19, 7:55 PM
    There is a handy step by step calculator here if they need help....
    https://www.gov.uk/maternity-paternity-calculator
    • Caro2882
    • By Caro2882 17th Apr 19, 9:04 PM
    • 4 Posts
    • 0 Thanks
    Caro2882
    • #6
    • 17th Apr 19, 9:04 PM
    • #6
    • 17th Apr 19, 9:04 PM
    Thanks so much for your help. That tool is excellent. I will pass it on. Iím hoping to have a baby too and knowing the dates they have to use and the inclusion of overtime really makes a difference to how much leave i can take, plus it seems so strange they have told my friend something completely different - I read the email myself so she hasnít misinterpreted what they were saying. Thanks again.
    • Caro2882
    • By Caro2882 18th Apr 19, 9:09 PM
    • 4 Posts
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    Caro2882
    • #7
    • 18th Apr 19, 9:09 PM
    • #7
    • 18th Apr 19, 9:09 PM
    I think I’ve confused myself further. So the question is, if you have worked substantial overtime during the qualifying period, can the company disregard this as they state they are paying you full pay for longer than the 6 weeks smp at 90% or should they reflect the higher rate for the first 6 weeks and then take it down to your standard wage for the remainder of the full pay period they offer? Does that make sense? Also on my own behalf I wondered if I consistently work overtime throughout the year can the employer disregard that overtime she. Calculating my maternity pay? I assumed if I do it reliably monthly there would be some argument I was entitled to it during maternity pay. Thanks for whatever help you can offer!!
    • chrisbur
    • By chrisbur 19th Apr 19, 9:15 AM
    • 3,145 Posts
    • 1,720 Thanks
    chrisbur
    • #8
    • 19th Apr 19, 9:15 AM
    • #8
    • 19th Apr 19, 9:15 AM
    I think I’ve confused myself further. So the question is, if you have worked substantial overtime during the qualifying period, can the company disregard this as they state they are paying you full pay for longer than the 6 weeks smp at 90% or should they reflect the higher rate for the first 6 weeks and then take it down to your standard wage for the remainder of the full pay period they offer? Does that make sense? Also on my own behalf I wondered if I consistently work overtime throughout the year can the employer disregard that overtime she. Calculating my maternity pay? I assumed if I do it reliably monthly there would be some argument I was entitled to it during maternity pay. Thanks for whatever help you can offer!!
    Originally posted by Caro2882
    The following comes from the old printed guide book for employers. This is no longer issued but to the best of my knowledge this rule still applies.
    Basically SMP is a weekly entitlement it can only be offset against a payment for the same week it cannot be offset against some payment that occurs in the future.
    Your payment for any week in the first six weeks SMP must not be lower than the calculated amount of SMP based on your average earnings for which NI is payable over the required 8 week average period.
    "Offsetting SMP against employee’s pay
    If you pay maternity pay under an employee’s contract of employment you must pay your employee at least the amount of SMP they are entitled to for each week in the pay period but you can offset the contractual payment against your liability to pay SMP for the same week for which it is payable.
    If your employee is entitled to more SMP than the contractual maternity pay you may offset the occupational pay but you must pay the balance of SMP due. Even if you are paying your employee occupational maternity pay you may still recover an amount based on your full SMP liability from the NI Fund in the normal way.
    However, if you have set up a scheme whereby your employee pays a contribution towards their occupational maternity pay, they are entitled to the full amount of SMP on top of their maternity pay from the scheme. If you share the cost of the maternity pay scheme, then you must calculate what proportion of the maternity pay is from your contributions and ensure that you pay your employee any balance of SMP needed to bring your share up to the SMP due. You cannot offset any of the maternity pay they have paid for against their SMP entitlement."
    Last edited by chrisbur; 19-04-2019 at 9:19 AM.
    • sheramber
    • By sheramber 19th Apr 19, 9:27 PM
    • 6,189 Posts
    • 4,678 Thanks
    sheramber
    • #9
    • 19th Apr 19, 9:27 PM
    • #9
    • 19th Apr 19, 9:27 PM
    you can work it out here

    https://www.gov.uk/maternity-paternity-calculator
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