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An outline of Statutory Maternity Pay.

The Maternity Pay Period (MPP) always runs for 39 consecutive weeks.  SMP is payable at two rates -

• the higher rate remains at 90% of the employee's average weekly earnings and is payable for the first six weeks for which SMP is paid.
• the lower rate is £112.75 per week from 5 April 2007 and is payable for any of the remaining 33 weeks of the 39 week MPP for which SMP is paid.

The date of payment of SMP is based upon the Expected Week of Confinement (EWC).  This is a calender week from Sunday to Saturday.

The Qualifying Week (QW) is the 15th week before the start of the EWC.

If the woman had been in continuous employment for 26 weeks by the QW, the MPP starts 11 weeks before the EWC.

Average weekly earnings is calculated over the 8 weeks before the QW.  To qualify for SMP those average weekly earnings must be at or above the Lower Earnings Level (LEL) which is £87 per week for 2007/08.  Any bonus paid in that 8 week period increases the amount payable.

SMP is subject to Tax and National Insurance deductions.

For 2007/08 employers who were liable to pay gross Class 1 NIC, including employee's and employer's contributions, of £45,000 or less, in the last complete tax year to 5 April 2007 before the employee's qualifying week, are defined as small employers.

Small employers can recover 104.5% of SMP by deduction from their PAYE and NIC remittance.  Other employers recover 92% in the same way.

See also Employment Status, Contract of Employment, Working Time Regulations, PAYE, NIC, SSP, SPP, SAP, NMW, Student Loans.

Reminder - disclaimer applies. Please feedback your comments.  This page was last modified 17 May 2007.