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Maternity pay for term time employees.

How exactly is maternity pay calculated for term time employees?

I am looking for a reference on how to calculate maternity pay for term time employees.

I have an employee who is due to go on maternity leave with a contract that is for statutory pay and can calculate this. What I'm not sure about is how to calculate holiday pay and whether this should be included monthly as currently our employees work 39 weeks of the year but are paid in twelve equal installments - same as teachers.

Do I calculate the first months pay as if they were ending a contract and calculate working time for the academic year, less payments already received and then pay maternity based on the average working week thereon in?

Holiday continues to accrue, so would this need to be paid monthly as well? 

Also what do I do about pensions?  We pay 10% employers pension. Do I keep that at the same rate ie as if working full time or do I pay it at 10% of actual monthly pay?

Where can I go to for advise on how to calculate this correctly?  Does anyone have any recommendations. 

 

Thanks for your help in advance.

 

 

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07th Dec 2017 14:27

Eh?

coraltolley wrote:

I have an employee who is due to go on maternity leave with a contract that is for statutory pay and can calculate this.


What is a contract for statutory pay?

coraltolley wrote:

What I'm not sure about is how to calculate holiday pay and whether this should be included monthly as currently our employees work 39 weeks of the year but are paid in twelve equal installments - same as teachers.


So, despite the heading, this is not a question about maternity pay, but about holiday pay?

coraltolley wrote:

Holiday continues to accrue, so would this need to be paid monthly as well? 


No - you can only pay holiday if an employee actually takes holiday (or leaves). If you start to pay holiday during maternity leave, SMP ceases.

coraltolley wrote:

Also what do I do about pensions?  We pay 10% employers pension. Do I keep that at the same rate ie as if working full time or do I pay it at 10% of actual monthly pay?


Yes & No. You must continue to pay the statutory minimum employer's contribution of 1% on pay for normal full-time working, but you obviously pay a much higher contribution - whether you reduce that to 9% of SMP depends on your terms of employment.
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