Have work miscalculated my maternity pay?

[blondecaramelmum]

Hi, wondering if anyone can help.

I finished work on the 20th November 2020. I wasn’t going back (to that job at any rate) so I was only entitled to basic SMP.

My monthly salary was just under £2000.

At the end of December I received a lump sum of £4640. I thought this was my maternity pay in a lump sum. But going through figures it seems way lower than it should be. Is that correct?

Maternity pay isn’t based on your salary per se, it’s based on a specific timeframe during the pregnancy so if you were off sick a lot during pregnancy it could be lower

Did you get emergency taxed and higher NI, pension, student loan etc if it got treated as a pay rise and not a one off?

No but SMP remains the same. So even 33 weeks at SMP is £5015 so less than I got?

Have you seen a payslip?

I wonder if that was what it was herc

I know I need to call my old workplace, just trying to work out what happened!

No, not that I can recall.

Get hold of a payslip and then you're fully informed. If a tax error you can claim back. It may already be in the process of coming back to you. Look out for the earnings round up from HMRC. I've forgotten the official name!

A tax issue I would guess maybe, as it’s all been paid in one lump sum

SMP has first 6 weeks at 90% of salary as at weeks 17-25 of pregnancy and then 33 weeks at SMP which is £152ish or 90% of salary whichever is lower

Did you pay extra NI and tax due to it being a lump sum?

Yes, I know demented but £151.97 (to be precise!) is lower than my salary was. I guess it must have been taxed extra but my calculations estimate I should have had around £8000 so difficult to see how £4000 in tax would have come out.

Wouldn’t you just be entitled to the basic rate of SMP for the whole nine months, if you’d already agreed you weren’t coming back?
Rather than the enhanced pay for the first six weeks? Or is it dependent on each individual employer’s maternity policy?

90% for the first 6 weeks is statutory for everyone. The it goes to SMP or 90% of weekly earnings, whichever is lower.

@daisydalrymple

Wouldn’t you just be entitled to the basic rate of SMP for the whole nine months, if you’d already agreed you weren’t coming back? Rather than the enhanced pay for the first six weeks? Or is it dependent on each individual employer’s maternity policy?

SMP includes the 6 weeks at 90% then drops to the standard weekly amount

Maternity Allowance doesn't have the 6 weeks at 90%