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Maternity Allowance vs SMP

2 replies

Rosybud88 · 16/09/2024 23:02

I fell pregnant whilst on maternity leave with my second baby due in January 2025. I was due to return to work in October 2024 but I have notified my employer that I wish to take back to back maternity leaves. I carried forward 5 days holiday, I receive 25 days holiday as standard and then bank holidays on top (8 I believe) so I should have around 38 days holiday to take also.

I will qualify for company pay which pretty much tops me up to salary for 26 weeks, what I’m stuck on is SMP vs MA. I can push for the holiday to be paid in the qualifying weeks to qualify for SMP but it’s dawned on me that this is taxable whereas MA isn’t. I have researched and I should be entitled to MA under DMG 62516 as I remain employed - is there a benefit to me going for SMP if my earnings are going to be topped up by my employer anyway?

I only received MA with my first pregnancy due to changing jobs at the wrong time so I’m really trying to have it all figured out this time round.

OP posts:
Bromptotoo · 17/09/2024 07:39

Be careful. If you need to claim Universal Credit MA is treated as a state benefit and UC is reduced £/£ for it.

SMP is earnings so if you have a work allowance that can be used against SMP and money over the work allowance is tapered so you lose 55p of UC for every £.

Harassedevictee · 18/09/2024 19:40

I would double check with your employer. Quite often Occupational Maternity Leave is a top up to SMP. So if you are not eligible and paid SMP then you may not get the top up.

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