do the government pay SMP or your employer?

[phoebebouffet]

I'M due to start maternity leave in March and work are talking about how much money we are losing and liklihood of redundancies and was wondering if I am 'costing' them anything for the next 9 months.

The government cover the basic SMP as I understand it, however this is topped up by some employers.

They should not be laying it on thick about how much money you are costing them. It's your legal right to take maternity leave. I would personally take a very dim view of this.

I think the way it works, is that yoru employers pays it, but claims it back from HM Treasury, that is what your MATB1 form is for.

They are can not use your maternity leave as a reason to make you redundant though. COnversely, I am feeling vulnerable because I am NOT pregnant! (5 or 6 of my female colleagues are though).

If you qualify for SMP (and there are rules) then your employer pays you and nets it off against his PAYE bill - ie the government in effect pays. A small employer can get another 4.5% back over what they pay in SMP. Basic SMP is £123 a week or thereabouts. Think this is payable for 39 weeks.

when I employed a nanny I was better off when she went on mat leave. govt pays smp and paid me a (small. very small) contribution to the cost of recruiting a a replacement.

Thanks everyone i do qualify and it is a small employer 5 employees!

The other thing is because times are so bad I daren't ask to claim my childcare vouchers whilst i'm off, i read on here they still have to give them to you is that still the case?

But childcare vouchers don't cost your employer anything do they? Isn't about how much you are taxed?

My understanding is that the benefits you receive from your job (pay, pension, car, childcare, health care) are the same on mat leave as long as whatever your are being paid (ed £123/week) covers it. The most CCV you can get is £55/week, so that should be OK.

I think!

i didnt think they could take them out of SMP though, so they have to give you them for free?

Yes Phoebe, you're absolutely right - your employer must continue to give you childcare vouchers and he can't take them out of SMP. This also applies to any other benefits - company car, share purchase plan etc.

And he can't get any of this back from the government.

Also, large employers only get 92% of SMP back.