Moneybox
October 1998
I am pregnant. Am I entitled to Statutory Maternity Pay and is my employer obliged to pay it?
If you are working for an employer during the ‘qualifying week’ – 15 weeks before the estimated week your baby is due – and you have already worked for them for six months, they are legally obliged to pay you Statutory Maternity Pay (SMP), even if you leave them between the ‘qualifying week’ and giving birth. They cannot dismiss you for being pregnant.
If you have worked for your employer for less than two years at the ‘qualifying week’ you are currently entitled to SMP of six weeks gross pay at nine tenths of your average gross salary and up to a further eight weeks SMP at the lower flat rate of £57.50 per week if you are returning to work for them, or up to 12 weeks at the lower rate if you are not. Lower rate SMP is free of tax and NI.
If you have worked for more than two years for your employer, you are entitled to SMP of six weeks gross pay at nine tenths of your average gross salary and up to a further 12 weeks at the lower rate whether returning to work for them or not, plus additional unpaid maternity leave before returning to work for the same employer.
The good news for your employer is that the DSS (through the PAYE tax system) will refund the entire cost of your SMP, including their additional Employer's National Insurance Contribution on your first six weeks of SMP. They can even claim the entire cost of your SMP in advance as a lump sum rebate so need not be out of pocket if, for example, they employ a second nanny to cover your maternity leave.
You are entitled to return to work with them at the end of your maternity leave – but only under the same terms so if you want to bring in your baby or work shorter hours they can refuse to employ you. Your employer must pay you SMP – If you qualify for it – even if you do not intend to continue working for them at the end of your maternity leave.
You must inform your employer of the date your maternity leave will start at least 21 days beforehand, and provide form MATB 1 (maternity certificate) which will be issued by your doctor or a midwife. You can start your maternity leave from 14 weeks before the baby is due but will only be entitled to SMP from 11 weeks before the baby is due.
It is more important than ever to communicate with your employer and keep them fully informed of your plans and condition.