Statutory Maternity Pay
From
April 2008, the 1st 6 weeks of payment is 90% of the employees
average weekly earnings. The SMP average weekly earnings calculation
which is performed 2 months prior to the qualifying week, takes into
account pay rises awarded, or which would have been awarded to a
woman had she not have been pregnant. The remaining 33 weeks will be paid at £117.18 (increased from £112.75). If the employee average pay is less than £117.18, then they will get the lesser rate for the remaining 33 weeks.
Previously, a woman loses one weeks SMP for each week in which she does any work for her employer under her contract of service. From 6 April 2007, this rule has been amended to enable women to undertake the odd days training or to go into work on occasion to “Keep in touch” without losing her SMP for that week.
The new legislation allows a woman to work under her contract of service for up to 10 days without losing any SMP. Whether the woman just goes in for 1 hour or a whole day, it will still be counted as a day for KIT purposes.
The decision to undertake KIT days must be made in agreement with the woman and her employer. The employer has no right to demand that any such KIT work is undertaken and the woman has no right to undertake such work. More information is on our SMP pages for registered clients only here>.
http://www.berr.gov.uk/employment/workandfamilies/maternity-leave-pay/guidance/page21116.html
Statutory Paternity Pay
The weekly rate of SPP paid to an employee for payment weeks starting on or after April 2008 is - the lesser of the standard rate, which is £117.18 (increased from £112.75) or, 90% of the employees average weekly earnings.Statutory Adoption Pay
The weekly rate of SAP paid to an employee for payment weeks starting on or after April 2008 is - the lesser of the standard rate, which is £117.18 (increased from £112.75) a week or, 90% of the employees average weekly earnings. Women can start maternity leave anytime from the 11th week before the baby is due provided 28 notice has been given to the employer.Employee's statutory rights must be incorporated in the employment contract including your company policy and procedures which employees should follow. Leave must be allowed for parental leave. Male and female employees must be offered statutory provisions for parental leave.
Small Employers’ Relief
For the 2008-2009 tax year provided that the total gross Class 1 NICs is £45,000 or less, you will be classed as a small employer. Small employers are entitled to recover 100% of the total Maternity pay paid plus compensation from the Revenue.
HMRC can impose penalties of around £1000 for failing to keep adequate SMP records with up to £5,000 penalty or Prison for false SMP information.
SMP SAP and SPP Rates for 2008 - 2009 are on the HMRC website http://www.hmrc.gov.uk/employers/rates-of-stat-pay.htm
This page was last updated
07/04/2008
