Enhanced Maternity Confusion

[ZestyPineapple]

Hi all,

I am struggling to get my head around my works new maternity policy and wondered if anyone could shed some light on it.

Basically, I am currently on maternity and my company have just changed their policy from the standard 6 weeks 90% pay and then SMP for 33 weeks to a new policy of 8 weeks full pay, 8 weeks half pay then 23 weeks SMP.

They have agreed to backdate the pay so I’d get the new entitlement but haven’t yet sorted out the payment and breakdown for me.

I have been trying to work out what I may be owed but driving myself mad as I can’t figure it out.

I have tried to contact to get an update but not heard back, so wondered if anyone could maybe advise me so I’m not left disappointed if it’s not as much as I thought 😂

The exact wording on the policy is -

“The first eight weeks of maternity leave paid at the rate of your normal
basic salary (inclusive of SMP);

1. A further eight weeks of maternity leave paid at 50% of your normal basic

salary (inclusive of SMP)”

My annual pay before any deductions is £17,418 and I work 3 days a week if that makes a difference. Although, we did get a pay increase which may come into some of this but let’s just go with this.

So in my workings out, I’d actually be getting less than SMP for the 8 half weeks which seems to go against having the enhanced policy or have I got this wrong 🤷🏼‍♀️

Any advice is greatly appreciated

Can you work out from the 90% what full weekly pay figure they are using? It will have been based upon what you actually earned during the qualifying weeks.

They will top up the SMP amount to your full pay/half pay

So for weeks 1-8 you’d get full pay, your weekly pay based on that figure is £334.96 so that x 8 = £2679.68. Your extra payment will be that figure minus whatever you did receive in weeks 1-8.

Because of your salary you don’t benefit from the 8 weeks half pay though because half of your salary is actually less than SMP. Because you’re entitled to SMP you cannot be paid less than that, but you won’t receive any extra money for that period.

So assuming you already had the first 8 weeks as 6 weeks at 90% then 2 weeks of SMP you would have had:

6 weeks 90% which is £301.46 a week
2 weeks of SMP at £187.18

So total: £2183 for that first 8 weeks.

8 weeks full pay = £2679

So if they backdate it you’d be due just under £500

Maternity pay is usually based on salary in the 2 months prior to the 25th week of pregnancy (roughly weeks 17-25). SMP will be topped up to give 50%/100% of pay

Oops, didnt realise the 50% would be less than SMP. You should just get the SMP part then

Thank you for your replies.

@Jellybunny56 thank you for breaking it down for me, I was trying to do this but getting myself in a muddle.

I suspected this may be the case, doesn’t seem much of a benefit when the enhanced policy is actually less 😂

Never mind, something is better than the nothing I am now on so I am grateful as they could have said no!

Can they change the policy when you are half way through maternity leave? I think that's pretty unreasonable and it sounds like they are clueless - their enhanced maternity policy is written poorly and conflicts with Stat - so I'd double check with ACAS or pregnant and screwed.

Since this policy is more generous than their previous policy, yes, they can change it at any time. However, I agree that they need to clarify that the 8 weeks on 50% of the employee's normal salary will pay full SMP if that is higher.

Yes, it’s meant to be a better policy and they didn’t have to offer to back date the difference.

So I am grateful that they are but the 8 week half pay part is a bit rubbish as not really a benefit but hey ho I got SMP for it so that will be that 🤷🏼‍♀️

The thing is though its only not better for you because of your salary, most people will be better off with the new policy. Even if you were working full time hours for minimum wage you’d be benefitting from the new policy.

True, I’m just sad about it as I could have done with a bit more money 😂

Nevermind it is what it is, at least I got something