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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

Maternity Pay - Anybody good with numbers

22 replies

RandomUser456878 · 27/02/2025 22:07

My girlfriend received her first maternity pay today. She started maternity 2 weeks ago and her pay seems alot less than expected (She'll message HR tomorrow)

The policy is that she'll recieve full pay for 6 months, so we didn't expect no changes in her amounts.

Does anybody know if your salary sacrifice pension affects this?

Annual Salary is 64k & she salary sacrifices 25% monthly into her pension.
Taxable incomes around 50k
This month she also a 12.5k bonus this month, and opted to put 11.5k into her pension, leaving an extra 1k in this months salary.

Pay Slip Amounts This month
Salary - £2 515.07 (Last Month was £5449.33)
Bonus - £1000 (After pension)
SMP. £866 (taxble income 90%?)
Gross Up £46.39
Parent Leave £ 391.54
WFH Allowance £36

Salary Recieved 2515+1000+866+391+46+36

So Total Salary recieved by my calculations are £4854, thats including £1k bonus. So there's £1.5k missing?

Any ideas?

OP posts:
Mrsttcno1 · 27/02/2025 22:12

First of all, I assume you have actually checked to confirm that she is eligible for the enhanced maternity package? Dates all okay etc and had this confirmed by HR?

WannabeMathematician · 27/02/2025 22:12

Is it actually six months pay? Or is is it 26 weeks? I ask because there are fewer weeks in Feb and so she would get less this month. Often policies are written in weeks as what a company can claim back from the government is based on weeks.

Original poster
RandomUser456878 · 27/02/2025 22:13

Mrsttcno1 · 27/02/2025 22:12

First of all, I assume you have actually checked to confirm that she is eligible for the enhanced maternity package? Dates all okay etc and had this confirmed by HR?

Yeah she's worked there for 8 years or so now. HR knew she was going off, we did the MAT1 forms etc.

We just expected no changes for 6 months. Wondering if we've harmed ourselves by putting so much in pension monthly and that reduced what they perseave her income as

OP posts:
Original poster
RandomUser456878 · 27/02/2025 22:15

WannabeMathematician · 27/02/2025 22:12

Is it actually six months pay? Or is is it 26 weeks? I ask because there are fewer weeks in Feb and so she would get less this month. Often policies are written in weeks as what a company can claim back from the government is based on weeks.

It could be 26 weeks, my companies is in weeks so assume its in weeks too

OP posts:
Original poster
RandomUser456878 · 27/02/2025 22:17

WannabeMathematician · 27/02/2025 22:12

Is it actually six months pay? Or is is it 26 weeks? I ask because there are fewer weeks in Feb and so she would get less this month. Often policies are written in weeks as what a company can claim back from the government is based on weeks.

Do you think we've shot ourselves in the foot by doing the 25% salary sacrifice, maybe we should have paid the extra tax for the last 8 weeks to get the extra money

OP posts:
AwkwardPaws27 · 27/02/2025 22:17

Annual Salary is 64k & she salary sacrifices 25% monthly into her pension.
Taxable incomes around 50k
This month she also a 12.5k bonus this month, and opted to put 11.5k into her pension, leaving an extra 1k in this months salary

I'm betting they've put 25% of the full amount for the month (usual salary + bonus) into pension, then also put the additional £11.5k into pension.

Merryoldgoat · 27/02/2025 22:18

Yes - a salary sacrifice arrangement can reduce salary - it certainly reduces the calc for SMP - it depends on what the terms and conditions of the occupational policy are.

Original poster
RandomUser456878 · 27/02/2025 22:19

AwkwardPaws27 · 27/02/2025 22:17

Annual Salary is 64k & she salary sacrifices 25% monthly into her pension.
Taxable incomes around 50k
This month she also a 12.5k bonus this month, and opted to put 11.5k into her pension, leaving an extra 1k in this months salary

I'm betting they've put 25% of the full amount for the month (usual salary + bonus) into pension, then also put the additional £11.5k into pension.

Pension SS is £1362.33, Last Months was £1362.34 so doesn't seem to be no different on that line.

There's an extra line for SS -11k

OP posts:
SEL0ndon · 27/02/2025 22:20

Pension salary sacrifice doesn’t impact maternity pay. All it does (in this sort of example) is reduce your taxable income.

It will be almost impossible for Mumsnetters to work out exactly what’s happened, but I’m sure people will give good examples. When there were issues with my maternity pay I just emailed my company’s payroll and asked them to give me a breakdown of exactly what I was due and explain why my payment month on month might be lower.

Some reasons it could be lower:

  • some works offer x months full pay, but spread across 10-12 months. So that you have some money coming in for your entire maternity leave rather than just at the start
  • she could be over taxed. Does she have a self assessment HMRC account so she can check her tax code and estimated income they have on record?
Merryoldgoat · 27/02/2025 22:23

SEL0ndon · 27/02/2025 22:20

Pension salary sacrifice doesn’t impact maternity pay. All it does (in this sort of example) is reduce your taxable income.

It will be almost impossible for Mumsnetters to work out exactly what’s happened, but I’m sure people will give good examples. When there were issues with my maternity pay I just emailed my company’s payroll and asked them to give me a breakdown of exactly what I was due and explain why my payment month on month might be lower.

Some reasons it could be lower:

  • some works offer x months full pay, but spread across 10-12 months. So that you have some money coming in for your entire maternity leave rather than just at the start
  • she could be over taxed. Does she have a self assessment HMRC account so she can check her tax code and estimated income they have on record?

It absolutely does if you receive only SMP and could for OMP depending on the actual terms and conditions of the policy.

SEL0ndon · 27/02/2025 22:23

Merryoldgoat · 27/02/2025 22:23

It absolutely does if you receive only SMP and could for OMP depending on the actual terms and conditions of the policy.

Show quote history

Apologies I stand corrected then!!

baffledpuzzledandconfused · 27/02/2025 22:29

Average pay for SMP is calculated on the pay that you pay NI on.

Salary sacrifice reduces this pay which will reduce the average pay used for SMP calculation.

The top up is contractual and not statutory so you need to check her t&cs or handbook.

safira · 27/02/2025 22:30

Has the tax code changed? My tax code was all over the place during mat leave, making it almost impossible to figure out what's happening. Payroll will be much more useful than MN at figuring it out - get her to shoot across a quick email asking for help.

Fuuuuuckit · 27/02/2025 22:30

Parental leave?

Do you have older dc? Parental leave is usually unpaid.

EasterIssland · 27/02/2025 22:31

AM I right the salary is calculated based on the salary they had on week 25 or before and not at the point of going on leave? Have they had a salary increase in the last few months?

Merryoldgoat · 27/02/2025 22:39

EasterIssland · 27/02/2025 22:31

AM I right the salary is calculated based on the salary they had on week 25 or before and not at the point of going on leave? Have they had a salary increase in the last few months?

For SMP is based on the qualifying period. OMP could be different.

Original poster
RandomUser456878 · 27/02/2025 22:42

Fuuuuuckit · 27/02/2025 22:30

Parental leave?

Do you have older dc? Parental leave is usually unpaid.

No first baby. It’s not even here yet. That’s just what’s on the slip

OP posts:
Original poster
RandomUser456878 · 27/02/2025 22:44

EasterIssland · 27/02/2025 22:31

AM I right the salary is calculated based on the salary they had on week 25 or before and not at the point of going on leave? Have they had a salary increase in the last few months?

No salary increase in 12 months.
just the bonus, but we pensioned that to save on tax

OP posts:
LIZS · 27/02/2025 22:46

You would need to look back at the salary and bonus received during the relevant qualifying period (around week 18 normally). She should have received a letter confirming her ml dates and payments.

TartanMammy · 27/02/2025 22:55

My guess would be she's hit the limit on tax free pension contributions so has been whacked for tax in this pay.

But only payroll will be able to tell you the breakdown.

FlippityFlippityFlop · 27/02/2025 23:12

When they pay you mat pay you go from having your pay calculated on an even monthly basis to it being calculated weekly/daily - so the amount you get will fluctuate depending on how many days are in the month / payroll cut off.

It looks like she has been paid for 1/2 month as a FTE and then only 1 week of Mat Pay (presumably due to cut off dates).

Paying the 25% as salary sacrifice is still a good move as assuming she takes 9 months maternity leave when she drops she to SMP only for the final 3 months work will still have to make her full pension contribution.

RatedDoingMagic · 27/02/2025 23:23

Has she had a pay rise recently? I believe that the "full salary" amount used to calculate maternity pay is the an average of the pay over the 8 weeks prior to the "qualifying week" which is 15 weeks before the due date. If she had a pay rise in November or December she might be receiving Maternity Pay based on the pre-payrise amount?

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