Your maternity pay calculation
Croner have created the below maternity pay calculator to help you quickly determine how much you owe to staff on maternity leave.
If you like, you can jump straight into the calculation. Or, if you need a little further guidance, scroll down past the calculator for some guidance on how to use the tool.
Start your calculation
SMP rates are as follows
The first 6 weeks are paid at the rate of 90% of the average weekly earnings and at the standard SMP rate for the remaining 33 weeks.
What you need to know
As with many other HR functions, maternity is filled with terminology—usually in the form of acronyms—such as:
This can make it difficult to work out maternity pay, let alone how and when you need to pay it. To make the calculation as simple as possible, you need to know what this all means. So, let’s break it down, step by step, based on the format of the calculator…
The first step of the calculation will need you to input the employment type of the staff member. For example, are they an employee or self-employed?
An employee is someone who works under an employment contract. There are lots of ways to work out if an individual is an employee. Generally, the more employment rights they have, the more likely they are to be an employee.
A self-employed person isn’t paid through PAYE, and they don’t have the rights and responsibilities of employees.
Expected Week of Childbirth (EWC)
EWC stands for “Expected Week of Childbirth”. Expectant mothers should be aware of their estimated due date. The EWC typically begins on the Sunday before their due date.
Average Weekly Earnings (AWE)
AWE stands for “Average Weekly Earnings”, also known as “Average Weekly Pay”. This is the most important figure in working out your employees’ maternity pay rates. The best way to determine staff AWE is to take all earnings paid in the relevant period and divide the earnings by the number of weeks in that period.
If they earn £120 on average per week or more in the tax year, they are eligible for statutory maternity pay.
Statutory Maternity Pay (SMP)
If you hadn’t guessed this one already, SMP stands for “Statutory Maternity Pay”. This is the minimum amount you must pay eligible employees when they go on maternity leave. To clarify, the above is an SMP calculator. You may wish to pay more than the calculation, particularly if this is outlined in your employment contracts.
The final figure will not be maternity pay after tax, the calculator gives you the overall figure. You should pay SMP in the same way you pay your employee salaries. In short, you need to deduct tax and National Insurance contributions. Keep this in mind when using the calculator. Also, keep in mind that there is a requirement for at least 26 weeks of continuous employment up to any day in the qualifying week to be eligible.
Similarly, the calculator will not work out enhanced maternity pay. The calculator works out the minimum, then it is up to you to decide whether you want to increase that figure.
If you need immediate support with maternity leave or pay, you can speak to an HR adviser today on 01455 858 132.