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Michigan Post > Blog > Politics > Maternity pay charges within the UK – and the way they examine globally
Politics

Maternity pay charges within the UK – and the way they examine globally

By Editorial Board Last updated: October 1, 2024 7 Min Read
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Maternity pay charges within the UK – and the way they examine globally

Tory management candidate Kemi Badenoch brought on a backlash final weekend when she stated maternity pay within the UK was “excessive” and known as for larger “personal responsibility”.

Her feedback – which she later backtracked on – ignited a brand new dialog about how moms are supported whereas away from work. So what’s maternity pay, who can get it and the way does the UK rank?

What it is advisable know

Statutory maternity pay (SMP) was launched within the UK in 1987.

Somebody who’s legally classed as an worker (our Cash weblog Mainly on employment rights explains this) can get SMP if:

They have been working constantly for 26 weeks for a similar employer earlier than their ‘qualifying week’ (the fifteenth week earlier than the child is due);They earn no less than £123 per week on common for eight weeks earlier than their qualifying week.

SMP is paid for as much as 39 weeks of the 52 weeks of go away that eligible workers are supplied.

Some employers, nonetheless, might provide “enhanced” maternity pay packages for workers which have been with them for a sure size of time – comparable to 26 weeks’ primary pay, adopted by 13 weeks statutory.

Importantly, eligible girls are nonetheless entitled to maternity go away and/or pay if their child is stillborn after 24 weeks of being pregnant, or is born alive at any level however doesn’t survive.

Picture:
All companies legally have to supply no less than the minimal statutory pay.

What’s it price?

For the primary six weeks, SMP is paid at 90% of your common weekly earnings.

After this, you are paid whichever is decrease:

£184.03 per week (the speed often will increase in April annually)90% of your common weekly earnings

Maternity pay is similar whatever the variety of kids you may have (eg twins or triplets).

For those who take the complete 52 weeks’ maternity pay, the final 13 weeks are unpaid until your employer affords you an enhanced bundle.

Who pays for it?

The employer pays SMP to their worker within the first occasion – however they will declare again most, or doubtlessly all, of the quantity from HM Income and Customs relying on the scale of the enterprise.

If an organization is smaller and has paid lower than £45,000 in school one nationwide insurance coverage contributions within the final tax 12 months, they will declare again the complete SMP quantity from the federal government plus 3% on prime in small employers’ aid.

Bigger employers can often declare again 92% of SMP.

How does UK maternity pay examine with different nations?

The UK is ranked very otherwise on two completely different measures of maternity pay within the OECD (Organisation for Financial Cooperation and Improvement) – a 38-member group which appears to be like at financial and social coverage.

On the subject of total pay, the UK sits in direction of the underside of the pack – but it surely’s close to the highest when measured on the size of paid time girls have the authorized proper to take off, in keeping with analysis by the OECD in 2023.

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A YouGov ballot carried out amid the row over Ms Badenoch’s remarks has discovered that simply 7% of Britons assume maternity pay is presently an excessive amount of – in contrast with 36% who assume it is too little, and 28% who assume it is about proper.

Girls (42%) have been extra possible than males (30%) to assume it isn’t sufficient.

What if I can not get statutory pay?

For those who’re not entitled to statutory maternity pay, you would possibly be capable to declare maternity allowance for as much as 39 weeks of your go away, which is paid immediately from the federal government.

You will get this in case you:

are employed however do not qualify for SMP;are self-employed;have not too long ago stopped working;participate in unpaid work for the enterprise of your partner or civil companion.

For those who’re employed or self-employed, you could have been registered as such for no less than 26 weeks within the 66 weeks earlier than your child is due date.

You may have to have earned no less than £30 per week for no less than 13 of these weeks.

For those who’re employed or have not too long ago stopped working, you may be paid an allowance of £184.03 per week or 90% of your common weekly earnings (whichever is much less). For those who’re self-employed, you will get between £27 to £184.03 per week relying on what number of class two nationwide insurance coverage contributions you’ve got made within the 66 weeks earlier than your child is due.

Paternity pay

Fathers are additionally entitled to some pay and time without work work after they welcome a toddler.

Like maternity pay, the statutory fee of paternity pay is £184.03, or 90% of your common weekly earnings – whichever is decrease.

Sometimes, statutory paternity go away is for as much as two weeks relying on eligibility, although some employers might provide extra with their enhanced parental go away bundle.

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