who should pay phi whilst on SMP?

[LeRoom]

My employer (a small business) offers private health insurance to employees. Half paid by the company and half taken out of our wages each month. Since I returned from maternity leave a few months ago, the office manager has been taking extra out of my pay packet each month, to cover the half I "should have been paying" whilst I was on maternity leave. So they've essentially saved my contributions up and are taking them all from me now.

As I understand it, since I was paid SMP only, the company should have been paying the whole amount on my behalf, as it is a contractual benefit and couldn't be deducted from my SMP, in the same way as childcare vouchers.

The office manager says I'm confused and clearly don't understand payroll, and I can't find guidance which makes it crystal clear to me, so I thought I'd ask here. Could anyone possibly advise?

Im afraid that whilst they must continue their part you must also continue your part. They don't suddenly have responsibility for your part just because you're on maternity leave.

Its the same with pensions.

Thank you for your reply. When you put it like that, it makes sense. :)

Is this a salary sacrifice (i.e. you accept a reduced salary in return for which they provide you with PHI)? If it is the company cannot recover anything that they say you "should have been paying" while you were on maternity leave.

The simple way to tell whether or not this is a salary sacrifice is by looking at whether the deduction is taken before or after tax. If they take the deduction and you then pay tax on the remainder this is a salary sacrifice. That means technically you are not paying anything. However, if you pay tax on your full pay and they then deduct this amount this is not a salary sacrifice.