Statutory Maternity Pay
2010-2011 Legislation (subject to parliamentary approval)
 From
April 2010, 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 £124.88 (increased from £123.06). If the employee average pay is less than £124.88, then they will get the lesser rate
for the remaining 33 weeks.
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>.
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The weekly rate of SPP paid to an employee for payment weeks
starting on or after April 2010 is - the lesser of the standard
rate, which is £124.88 (increased from £123.06) or, 90% of the employees average weekly
earnings.
Additional paternity leave
Consultations are in progress to propose a new scheme for additional paternity leave for parents.
This is applicable for babies born on or after 3 April 2011. The extended scheme will allow fathers and partners to share the maternity or adoption
pay and leave.
The weekly rate of SAP paid to an employee for payment weeks
starting on or after April 2010 is - the lesser of the standard
rate, which is £124.88 (increased from £123.06) 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 2010-2011 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 are on the
HMRC website
http://www.hmrc.gov.uk/employers/rates-of-stat-pay.htm
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This page was last updated
24/01/2010
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