How much maternity benefit will I receive and for how long? (2023)

How much maternity pay you earn during your time off can have a major impact on how you live your life.understanding is also importantHow is maternity benefit calculatedeif you need to go upstairsThis way you can keep track of how much you can get.

The good news is that from April 2023 the maternity leave salary has been increased.

Sarah PennelsRoyal London's consumer finance experts point out that maternity leave payment policies vary widely between employers - just because someone in your antenatal class expects to be fully paid for six months doesn't mean you can too. “After the first six weeks, the minimum wage that employers have to pay is not generous,” she told us. "But some organizations pay for the first six months or longer in some cases. Whether your employer has a generous maternity or parental policy, or pays only minimum wage, your family's financial situation could be impacted."

It's also worth finding out if you qualifySure Start Maternity Benefits, which can offer a £500 one-off payment to help you buy all the baby essentials new parents might need. Thathealthy start programIt should also be considered, as it can help low-income people buy healthy food and milk, as well as essential vitamin supplements that you or your baby may need during your pregnancy.

How much maternity allowance can I get?

Mandatory maternity pay determines the minimum wage your employer can pay during your maternity leave. This represents 90% of your average weekly income over the previous six weeks. This is followed by 33 weeks at £172.48 per week or 90% of your average weekly income, whichever is less. This means that you have paid a statutory maternity benefit for a total of 39 weeks. If you take 52 weeks off when you have your baby, you won't get SMP for the last 13 weeks.

It is important to note that SMP starts when you go on maternity leave and not when you give birth. In general, the earliest you can start maternity leave is the 11th week before your due date, unless the baby is due earlier.

Some employers will pay a higher maternity pay – known as professional maternity pay or contractual maternity pay.

For example, the NHS pays for:

Ask your human resources department or check your contract terms to see if your employer is paying more than the SMP.

Am I entitled to continued payment of maternity leave?

Statutory maternity pay (SMP) is the statutory minimum wage that all employers must pay you while you have a baby. You are eligible for AMM if you have worked for your employer for a certain period of time. You must also have an income above the minimum limit during this period. Finance expert Sarah Pennells explained: "To get it you need to have worked for your employer continuously for the past 26 weeks - that's six months - and earn an average weekly income of at least £123".

In theory, this should make calculations easier. However, as Sarah Pennells points out, the eligibility rules can be confusing. "It is like that becausesix months jobThis continues until the so-called "qualifying week". This is the 15th week before your due date and the date you should tell your employer that your baby is due. "

It is also important to note that your employer does not automatically pay your SMP. You must inform your employer that you are going on maternity leave to secure SMP. Sarah Pennells added: "The deadline to do this is 28 days before you intend to stop working, so let your employer know before then. You will also need to provide proof that you are pregnant in order to receive maternity pay. collect."

You can use the MATB1 certificate for this. You will usually receive this from your midwife or doctor around 20 weeks. If you don't get yours and your pregnancy is past that point, it's important to pursue it. Without this, you cannot receive maternity benefits.

If you are not entitled to statutory maternity benefit...

If you don't qualify for SMP, the good news is that there is still a safety net called maternity benefits. Maternity benefit pays 90% of your average weekly wage or £172.48 per week for 39 weeks, whichever is less.Laura SuterAJ Bell's head of personal finance explains: "You only need to have been employed or self-employed for six months in the last 15 months and have earned £30 or more for at least 13 weeks. Another way to qualify is if you pay non-work to your partner and he is registered as self-employed, although in this case you will only receive paid maternity benefit for 14 weeks."

If you are self-employed, the amount of your pregnancy benefit depends on your national insurance contributions. To get the full amount, you must be registered with HM Revenue & Customs for 26 weeks before the deadline and have paid Level 2 national insurance contributions for 13 weeks in the meantime.

Do I have to pay taxes on my maternity leave salary?

Even though your living expenses may be reduced while you are on maternity leave, your maternity benefit will still be taxed. This means that if your gross annual income exceeds your personal allowance - £12,570 in tax year 2023/24 - youincome taxon top of.

Laura Suter, a personal finance expert, explains, “You still pay taxes on the maternity pay you normally receive. Income is affected.

The fiscal year runs from April to April. The earlier in the tax year you take maternity leave, the more likely you are to get maternity leaveincome tax refundYour tax code should be adjusted for your lowest income during the tax year you return to work. This means that you will not receive a tax refund.

Will I be paid full wages during maternity leave?

It is unlikely that you will receive full pay during your maternity leave. Although you can get close to that in the first few weeks. SMP guarantees that you will earn at least 90% of your average weekly income in the first six weeks. This only happens if you meet the eligibility criteria. Some employers offer higher maternity benefits, which may be equal to full pay. However, you will be very lucky if you are paid in full during your maternity leave. You can start with full pay, but you can drop to half pay during your maternity leave.

What happens if I get pregnant again?

If you become pregnant again during maternity leave, you are entitled to 52 additional weeks of maternity leave for the next child. Depending on your schedule, you may not even have to go back to work between each baby. However, what happens to your maternity benefit depends on how you are treated by your employer. Like Gary Wedderburn, consultantAcas, Consultancy, Mediation en Arbitrage, explained: "For the maternity salary contract, everything will depend on the conditions set by the employer".

If you're taking SMP, you should theoretically take it with your next pregnancy, even if you're still on maternity leave. However, you must demonstrate that you still meet the admission criteria.

Gary Wedderburn added: "Proving you are pregnant and giving sufficient notice is usually not a problem. Meeting the criteria of working at least 26 consecutive weeks to qualify for eligible weeks is also not a problem , as you will continue to be employed during leave and maternity leave , the average weekly wage of GBP 123 may be a problem If you are on paid maternity leave this counts towards the average wage If you are on unpaid maternity leave you may not earn the average income required to take a second break."

As long as you qualify, your SMP will have the same eligibility requirements as your first child. SMP rates did not decrease for additional children.

What happens if I decide not to go back to work?

During maternity leave, you can decide that you no longer want to work after a year off, ornot worth it financiallyThe good news is that you don't have to pay the compulsory maternity allowance. However, if you receive a pay raise for maternity leave, your employer may require you to repay amounts other than the SMP.

Or maybe you need to go back to work for a while. Check your contract or employee handbook to see how long it takes to return to work to keep the maternity leave pay raise.

Can I get maternity benefits if I lose my job?

If you are not working when you have your baby, you may still be eligible for maternity benefits. But that only applies if you have recently stopped working. To be eligible, you must have been working (or self-employed) for 26 of the 66 weeks before your due date. You also have 13 weeks, during which you earn an average of £30 per week.

If you do not qualify for SMP or maternity leave, you may be eligible for other benefits, such as Universal Credit.