90% Pay Calculations

[meggles]

I'm trying to figure out how my first 6 weeks of maternity leave is worked out. I understand it's 90% salary, but how is 'salary' defined?

According to Direct.gov, it says: "To calculate your average weekly earnings your employer will average your gross earnings over a period of at least eight weeks up to and including the last payday before the end of your qualifying week. The qualifying week is the 15th week before the week your baby is due. This period may vary depending on how often you are paid ? weekly, monthly or other intervals.."

My question is that I go on leave starting 20-Feb. In my January pay packet, I have a very large annual bonus. Should the 90% be calculated by my December & January Pay Packets? My employer is saying no, that it should be calculated on my annual salary. There's a very large difference, and if I'm entitled to the extra money, I sure as heck want it.

Can anyone advise? My employer has already given me wrong information re: company car, so I'm expecting them to get the information wrong again...

Thanks in advance

When does your 26th week of pg fall ? It is usually the average of the 8 weeks up to and including that week, so if your bonus is paid within that period it will be included in the calculation.

What LIZS said. My "average" 90% pay included my commission payments and was thus rather more than my basic pay (withouth commission) at 100% would have been... It was great!

Hope yours is included.

If you get paid more during the qualifying weeks you get more maternity pay. I managed to get a bonus and payrise into the right weeks with my first pg which was nice :)

Although from what you've said it does say "at least 8 weeks" which is a little less well defined.

My bonus fell in my qualifying period too and so my 90% was very healthy

I don't remember it saying at least 8 weeks - then it goes on to say about weekly / monthly i guess they mean if you are paid monthly it would average over 2 months rather than 8 weeks. I doubt they mean the employer can choose to average over eg the last 5 years to make it as little as possible.

Put your details in here and see what it says. It asks for pay during specific periods etc I filled it in for mine to check it was right.

You can then print it off and present it to your employer. They can't argue with HMRC

HMRC:

"The "relevant period" is needed to establish the earnings to be used and the number of days, weeks or months to divide those earnings by. All earnings paid in the "relevant period" are divided by the number of days, weeks or months in that "relevant period".

Regulations define the "relevant period" as the period between:
Date 1
The last normal payday on, or before the Saturday of the 15th week before the baby is due. This payday will be Date 1 in the "relevant period", and
Date 2
The last normal payday falling not less than eight weeks before the payday at Date 1. Date 2 will be the day after this payday and is the start of the "relevant period".
should include all the earnings paid on, or after Date 2, up to and including those paid on Date 1.

The "relevant period" ends with the last normal payday on, or before the Saturday in the 15th week before the week baby is due and starts with the day after the last normal payday at least 8 weeks before that.
"

My qualifying months were Dec Jan so my employer is paying any overtime I did in those months at the end of Jan instead of the following month like they usually do so that my 90% is boosted. You can go on the HMRC website and use the calculator to work out your qualifying period. Your employer should be using this too!

Link to hmrc calculator is on my post before last.

wants3 what a fantastic employer! Mine tried to screw me right over I'm sorry to say.

Thank you all so much for the calculator? unfortunately, since my ?qualifying period? is Oct/Nov, and my bonus is paid in Jan, I?m not entitled to this higher rate?. Boo Hoo?

Oh well, at least you know now.

Shame though.

If it makes you feel any better although I got my bonus in the 90% with DD1, I was on stat min with both children!