Statutory Maternity Pay Smp Faqs
How do I work out if I am eligible to be paid SMP by my current employer?Forget the urban myth about a girl who worked for 2 days, called in sick and claimed to be pregnant and the employer had to pay her SMP. There is a strict criteria for payment; you should have been employed for at least 26 weeks up to the beginning of the 14th week before the beginning of the week that you are expecting the baby. The week that you are expecting the baby is termed as the Expected Week of Confinement (EWC) and the 14th week before the EWC is known as the Qualifying Week (QW). The beginning of the week is always a Sunday. Your average earnings before the QW must also exceed the current National Insurance LEL (for the 06/07 tax year this is 96 per week). The lower and upper age limits for SMP were removed when the Age Discrimination Act 2006 was passed and became law on 1 October 2006.
How are the average earnings worked out?If you are weekly paid, the 8 weeks prior and including the QW are totaled and divided by 8. For fortnightly, at least 4 payments are totaled and divided by 8, for lunar (four weekly), at least 2 payments are totaled and divided by 8, for monthly, at least 2 payments, multiplied by 6 and then divided by 52. If you received a payment outside of your normal pay day (for instance, a bonus payment) which is inside the 8 weeks prior to QW, this will also be taken into account. The payments totaled are those liable for National Insurance.
How much will I get paid?By law, provided you satisfy the employment conditions, for the first 6 weeks you will be paid 90% of your average earnings. For the following 20 weeks, you will be paid the lesser of 90% of your average earnings or the current lower rate SMP (06/07 - 108.85 per week). Note that for babies expected on or after 1 April 2007, the payment has been extended a further 13 weeks. The 07/08 rate for SMP will be 112.75 per week. A lot of employers are now "baby friendly" and offer Company Maternity Pay schemes. These vary from employer to employer - check with your Human Resources Department.
How often will I get paid?Generally, SMP is paid at your normal pay interval.
I have more than one employer - who do I claim SMP from?All of them! Provided you satisfy the employment conditions for the employment, you are entitled to receive SMP from all the employers. It is interesting to note that it is dependent on the number of current Contracts of Employment you hold; for instance, a nurse may work in the same hospital, but has contracts for both the private and public sector - she can claim SMP from both contracts. Explain to your midwife or doctor that you will need more than one MATB1 - most employers dislike photocopies.
When can I start my maternity leave?You must give your employer more than 4 weeks notice before you start the leave, and you must give them an original copy of your MATB1. You may start your maternity leave no earlier than the 12th week before the EWC. For babies expected on or before 31 March 2006, the leave must start on a Sunday. For babies due after this date, the leave date can be any day of the week you choose. Regardless of when the baby is due, there are two common incidents that can affect your start date or planned start date. If the baby is born early, and this is before your planned leave start date, maternity leave and pay will commence from the following day, it does not matter which day of the week this is. If you are off sick with a Pregnancy Related Illness (PRI), the employer can start the maternity pay at the beginning of the 4th week before the EWC, if you are still of sick at that point. PRI's can be bones of contention between employer and employee, so discuss the matter with your doctor or midwife if you believe you may be affected by this. If an illness may be construed as a PRI by your employer, but was not caused by your pregnancy, ensure that your doctor puts this in writing to your employer; this can save any misunderstanding or underpayment later.
I am not entitled to SMP from my employer - I fail one or more of the conditions. What happens now?Your employer should return your MATB1 along with form SMP1 - this will enable you to claim Maternity Allowance from the DWP. It should clearly state when you plan to start the Maternity Leave and the reason why your employer cannot pay you.
I would prefer a lump sum payment rather than my regular payments - can I request this?Yes. Bear in mind though, you will pay more National Insurance and tax as a result, as compared to receiving it at your normal pay intervals. Tax can be claimed back at the end of the tax year, if your employer is not processing tax rebates for you (there can be several reasons for this, but may be because of your tax code). National Insurance however, cannot be claimed back.
I am leaving my employer/getting made redundant before my Maternity Leave starts - do they still have to pay me?Yes, regardless of reason, provided you satisfy the earnings and employment conditions, your employer will still have to pay you SMP. If you have already left, the employer can, and probably will, pay you the total SMP as a lump sum. Note that if you have been made redundant, the SMP CANNOT be used as part of a lump sum tax free payment.
I received a pay rise which was effective before my QW, but I did not receive it and the backdated payment until after the QW. Does this affect my SMP?Yes. Your employer must treat the pay rise as if it had been implemented at the correct time and calculate accordingly. If your maternity leave has already started, they should backdate your SMP. If the pay rise affects your entitlement to SMP (i.e you were earning under the LEL, but the pay rise has raised your earnings above the LEL), SMP becomes payable by your employer. If you are already receiving Maternity Allowance from the DWP, you should declare this to them and claim SMP from your employer. You should also tell your employer how much Maternity Allowance has been received from the DWP, as this will be deducted from your SMP entitlement.
I am in a Salary Sacrifice Scheme at work. I have read that I should drop these during the months before my QW as this will affect my SMP payment. Is this true?Yes, it may do, if it has reduced your NI'able pay. You should contact your Payroll or HR Department if you think you may be affected by this - at worst, it may mean you are not entitled to SMP from your employer at all, if your average NI'able pay is less than the LEL, even if your average salary isn't.
To be absolutely sure of how much and when you will be paid, ask your HR or payroll department for a schedule of your SMP payments. This will save any misunderstanding or confusion, and usually your employer will be happy to provide this.
