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Statutory Maternity Pay

2012-2013 Legislation


Statutory Maternity pay pictureFrom April 2012, 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 135.45 (increased from 128.73).  If the employee average pay is less than 135.45, then they will get the lesser rate for the remaining 33 weeks.




2013-2014 proposed rates
The UK Government announced in the Autumn 2012 budget statement to expect an increase of 1% for the next three years.  This means that from 6 April 2013, the statutory maternity pay for the remaining 33 weeks will increase (135.45 x 1%).  We will publish the official rate as soon as this has been announced on HMRC website.  The budget statement can be found here http://www.hm-treasury.gov.uk/as2012_documents.htm



The 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>

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Statutory Paternity Pay

The weekly rate of SPP paid to an employee for payment weeks starting on or after April 2012 is - the lesser of the standard rate, which is 135.45 (increased from 128.73) or, 90% of the employees average weekly earnings.

Additional paternity leave
The extended scheme will allow fathers and partners to share the maternity or adoption pay and leave.

Statutory Adoption Pay

The weekly rate of SAP paid to an employee for payment weeks starting on or after April 2012 is - the lesser of the standard rate, which is 135.45 (increased from 128.73) 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 2012-2013 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 3%  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 are on the HMRC website http://www.hmrc.gov.uk/paye/rates-thresholds.htm

   

 

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This page was last updated 22/12/2012
 



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