To ask for your help - Mat leave

[Matleave22]

Hello all,

Long time poster but NC as employer doesn’t know I’m pregnant and will be going on Mat leave.

The organisation has a published Mat leave policy of 16 weeks full pay, 10 weeks half and then 13 weeks SMP.

I earn 90k per year but have big pension contributions (18% myself + employer contribution). I take home about 4100 a month after health plan too.

Is the 16 weeks full pay based on my gross salary, or my gross salary - pension contributions or is it my ‘take home’ net salary after all health plans, NI, pension deductions etc.

Thank you so much for your help, I have googled this, looked on MSE and also should probably see an IFA, but I wondered if anyone could help me out on this one?

Thanks 😊

The 16 weeks full pay includes the normal deductions, pension contributions continue, you could choose to pause stuff you voluntary pay into etc. But you are subject to Tax / NI pension contr etc

Perfect thanks for your help @Ohsoquiiieeetttttt454333

It is based on salary after any sacrifices. So if your pension is via salary sacrifice then your Mat pay will be based on the lower amount. If it's not salary sacrifice then it will be based on pre pension salary

I reckon I will end up with about 2.5k per month then total;
16k for 16 weeks full net pay
5k for 10 weeks half pay
2k for 13 weeks SMP
So 23k total/9 months = 2.5k net take home per month?

Think I’ve got that right, clearly don’t work in Finance 😂

SMP is so low isn’t it! £600 a month must be next to impossible to live on. Feels like some serious policy reform needed!

Oh SMP is horrendous isn’t it, I got 18 weeks full pay then the rest Stat mat. With my 1st we saved so it was no issue, the 2nd time as high nursery’s fees we couldn’t save as much…. Had to go back to work full time
After six months 😩

Honestly you need to ask your employer. They can do whatever they want for the discretionary (non SMP bit) and may choose pre or post salary sacrifice.

You are on an excellent wage so presume you have already have plenty saved?

You will pay pension contributions on what you actually receive but the employer will pay contributions based on your pay before mat leave until a certain point - think it's until your pay goes to £0 (last 13 weeks).

Stat mat pay isn't great but luckily for me it wasn't too much of a jump. On your salary it will be much more of a difference. Congrats and enjoy your mat leave and new baby - I would love to do all that again!

Agree SMP is a joke. Pregnancy wasn't planned so had I not been a saver by nature I would have been screwed! Luckily my workplace offers 26 weeks full pay, 13 weeks SMP and then 13 on nothing. Serious policy reform needed though as I realise that isn't the norm.