What Happens to Your Pay During Maternity Leave? Understanding Your Rights and Entitlements

When you go on maternity leave, your pay usually changes from your full salary to Statutory Maternity Pay (SMP) or Maternity Allowance if you qualify. You can get up to 39 weeks of maternity pay, with the first 6 weeks paid at 90% of your average weekly earnings, followed by a lower fixed rate or 90% of your earnings for the next 33 weeks.

Your employer must protect your employment rights while you’re on maternity leave. This means you still build up holiday and may get pay rises. It’s important to understand how maternity pay works so you know what to expect during this time and can plan your finances.

Knowing the details about your maternity pay can help ease worries about money during your leave. Read on to find out more about how payments are calculated, your rights, and what happens after maternity leave ends. For more details on the rules, see maternity pay and leave information on the GOV.UK website.

Understanding Maternity Leave and Pay

When you take maternity leave, the type of leave, your eligibility, and key timing rules all affect how much pay you will get. It is important to know the different kinds of maternity leave and when you qualify for pay.

Types of Maternity Leave

You have the right to up to 52 weeks of maternity leave. This is split into two parts:

• Ordinary Maternity Leave (OML): The first 26 weeks.
• Additional Maternity Leave (AML): The following 26 weeks, after OML ends.

Statutory Maternity Leave starts from the date you choose, which can be any time from 11 weeks before your due date. You do not have to return to work after your leave, but your contract of employment stays in place for the full 52 weeks.

You can only take your maternity leave once for each pregnancy. Your employer must hold your job open for you during this time.

Eligibility Criteria

To qualify for Statutory Maternity Pay (SMP), you must:

• Have worked continuously for your employer for at least 26 weeks by the qualifying week.
• Earn an average of at least £123 per week (before tax).
• Still be pregnant 11 weeks before your due date or have had your baby.

Even if you do not qualify for SMP, you may be able to get Maternity Allowance from the government.

You must also give your employer notice of your pregnancy and intended leave dates at least 15 weeks before your baby is due, or as soon as possible after that.

Relevant Period and Qualifying Week

The relevant period is usually the 66 weeks before your baby due date. Your qualifying week is the 15th week before the expected week of childbirth. These dates determine your eligibility for SMP.

Your average weekly earnings, used to calculate SMP, are worked out during the 8-week period ending with the qualifying week.

You must inform your employer of your due date and intended start date of maternity leave by the end of the qualifying week to secure your pay rights. Failure to do so may affect your entitlement.

Learn more about Statutory Maternity Pay and Leave for detailed guidance.

How Maternity Pay Is Calculated

Your pay during maternity leave depends on your eligibility and which type of maternity pay you receive. It is based mainly on your average weekly earnings during a specific period before your leave starts. Different rules apply to statutory maternity pay, maternity allowance, and enhanced maternity pay from your employer.

Statutory Maternity Pay (SMP)

Statutory Maternity Pay is the most common type of maternity pay if you qualify. To get SMP, you must have worked for your employer for at least 26 weeks by the end of the 15th week before your baby is due. Your pay is calculated from your average weekly earnings during the 8 weeks before this “relevant period.”

You receive 90% of your average weekly earnings for the first 6 weeks. For the next 33 weeks, you get the lower of either £187.18 per week (2024/25 rate) or 90% of your average weekly earnings. SMP is paid through your employer and is subject to tax and National Insurance deductions.

Maternity Allowance

If you don’t qualify for SMP, you might get Maternity Allowance instead. This is paid by the government and is based on your recent work or self-employment history.

You can receive either £187.18 per week or 90% of your average weekly earnings for up to 39 weeks, whichever is lower. To be eligible, you usually need to have worked at least 26 weeks in the 66 weeks before your baby’s due date and earned at least £30 per week in at least 13 of those weeks.

Maternity Allowance is important if you do freelance work, are self-employed, or if your employer doesn’t pay SMP.

Enhanced Maternity Pay

Some employers offer enhanced maternity pay as part of your contract or workplace policy. This pay is more than SMP and varies greatly between employers.

Enhanced maternity pay often means you get your full salary for a set number of weeks, then SMP or Maternity Allowance for the rest. Some employers also include extra benefits, such as payments during the notice period or holiday pay.

If your salary is part of a salary sacrifice scheme, your average weekly earnings for SMP are calculated before deductions, so your pay won’t be unfairly reduced.

Check your employer’s maternity policy carefully to understand what enhanced maternity pay you can receive beyond statutory payments.

Additional Financial Support During Maternity Leave

You may be able to claim extra benefits or get help with certain costs while you are on maternity leave. This includes support with your household income, one-off payments, and help with essential health-related expenses.

Universal Credit and Other Benefits

You could be eligible for Universal Credit during your maternity leave. This is a monthly payment that helps with living costs, especially if your income drops. Your payment amount depends on your household income, savings, and other circumstances.

Other benefits linked to having a child, like Child Benefit, might also help. These can add to your income while you adjust to having a new baby.

Make sure to update your Universal Credit claim if your work hours or pay change during maternity leave. This ensures you receive the correct payments. You can find advice on money for parents and babies from organisations like Maternity Action.

Maternity Grant and Healthy Start

The Maternity Grant is a one-off payment of £500 if you’re on certain benefits. You can use this money to buy things like a crib or clothing.

To get this grant, you must be on qualifying benefits such as Universal Credit or Income Support and have a low income.

Healthy Start vouchers are available to pregnant women and families on benefits. These vouchers can be used to buy milk, fruit, vegetables, and vitamins. You can get them if you’re more than 10 weeks pregnant or have a child under four and meet the benefits criteria.

NHS Prescriptions and Dental Care Entitlements

While pregnant or with a young child, you might qualify for free NHS prescriptions and dental treatment. This includes check-ups, treatments, and some dental care related to pregnancy.

You can apply for an NHS maternity exemption certificate for these benefits. This reduces your healthcare costs during pregnancy and the early months after your baby is born.

If you don’t qualify for free NHS services, you might be able to get help with costs through the Healthy Start scheme.

For more details on maternity and health-related financial help, see NHS information on maternity and paternity benefits and leave.

Maternity Leave Rights and Workplace Considerations

When you go on maternity leave, several rights and workplace rules affect your pay, benefits, and employment terms. It’s important to know what stays the same, what changes, and how things like pension and salary sacrifice schemes are handled during your leave.

Employment Rights During Leave

Your contract of employment remains in force during maternity leave. This means you keep your normal terms and conditions, except your pay might change if you receive statutory maternity pay (SMP) or maternity allowance.

You continue to accrue holiday leave while on maternity leave. You also keep your right to any pay rises or bonuses that apply to other employees. Discrimination based on taking maternity leave is illegal, so your job should be protected.

If you work even a day during maternity leave, make sure it doesn’t affect your leave rights. You can do up to 10 “keeping in touch” days without ending your maternity leave or pay.

Pension Contributions

Your employer usually keeps paying pension contributions during paid maternity leave based on the amount of pay you receive. If you’re on unpaid maternity leave, contributions might stop unless your employer continues them voluntarily.

Some employers calculate pension contributions on your usual salary for the entire leave period. Check your pension scheme rules to see how your contributions will be treated.

It’s important to ask your HR or pension provider about how your maternity leave affects your pension to avoid surprises when you retire.

Antenatal Appointments

You have the right to paid time off work for antenatal appointments. This includes scans, tests, and classes related to your pregnancy.

You don’t have to use holiday leave or unpaid leave for these appointments. Your employer should allow enough time for you to attend, usually with pay.

This right covers antenatal care up to and including the birth of your child. It helps you focus on your health without losing income.

Salary Sacrifice and Benefits

Salary sacrifice schemes are agreements where you give up part of your pay for benefits like childcare vouchers or cycle-to-work schemes.

If you’re in a salary sacrifice arrangement, your maternity pay will be based on your reduced salary after the sacrifice.

This means your statutory maternity pay could be lower. Some employers adjust arrangements during maternity leave, but not all do.

Check with your HR department to understand how your benefits and salary sacrifice will work while you’re on maternity leave.

Transitioning Back to Work After Maternity Leave

You have rights around returning to work after maternity leave, including your job role, pay, and work conditions. You can also use keeping in touch days to ease your return or request flexible working to balance your new routine.

Returning to Work

If you take 26 weeks or less of maternity leave, you have the right to return to the same job on the same terms. If your leave is longer, your employer must offer you a suitable alternative job if the original position isn’t available, but it cannot be less favourable.

Your pay and benefits should stay the same as before you left. Remember that your contract and seniority continue while you’re on leave. If your employer does not follow these rules, you may have grounds to raise a complaint. More details are available on your right to return to work.

Keeping in Touch Days

Keeping in touch (KIT) days let you work up to 10 days during maternity leave without losing your Statutory Maternity Pay. These days can help you stay updated with work and prepare for your return.

Using KIT days is voluntary for both you and your employer. You don’t have to work any days if you don’t want to, and your employer can’t force you to take them. Any work on KIT days should be agreed in advance and paid at your usual rate.

KIT days are a useful way to smooth the transition, catch up on changes, or attend training without ending your maternity pay. You can find practical advice about KIT days on keeping in touch days.

Flexible Working Options

After maternity leave, you have the right to request flexible working to help manage childcare alongside your job. This can include changes to your hours, location, or work pattern.

Your employer must consider your request seriously and respond within three months. They can refuse only for legitimate business reasons like costs or impact on service.

Make your request in writing, clearly explaining how the change will work and benefit both you and your employer. Planning ahead improves your chance of success. More guidance is available on flexible working rights.

Related Leave and Parental Support Options

You have different types of leave and pay options connected to maternity leave. These include shared parental leave to share the leave between parents, time off for partners with paternity leave, and special leave for parents through surrogacy arrangements.

Shared Parental Leave

Shared parental leave lets you and your partner divide the leave and pay entitlement after the baby’s birth. You can both take time off at the same time or separately up to 50 weeks of leave and 37 weeks of pay. To qualify, you must meet work and earnings criteria, and your employer must be notified in advance.

You get Statutory Shared Parental Pay (ShPP), which usually pays 90% of average weekly earnings for the first 6 weeks, then a standard rate (£172.48 from April 2024) or 90% of earnings, whichever is lower. You can use a maternity pay calculator to check exact amounts.

Shared parental leave offers flexibility but requires careful planning and agreement with your employer. It’s designed to help parents share childcare duties in the baby’s first year.

Paternity Leave and Pay

If you’re the baby’s father or partner, you can take up to 2 weeks of paternity leave. This leave must be taken within 56 days of the baby’s birth.

Paternity pay is paid at the statutory rate or 90% of your average weekly earnings, whichever is lower. You must have worked for your employer continuously for at least 26 weeks by the end of the 15th week before the baby is due.

You need to inform your employer at least 15 weeks before the due date about your intention to take paternity leave. Your employer may offer additional pay or leave, but the law guarantees only the statutory minimum.

Surrogacy and Parental Leave

If you become a parent through surrogacy, you have parental rights, including leave and pay. In Scotland and across the UK, intended parents can claim parental leave once they legally become the child’s parent.

Statutory Parental Leave is available for up to 18 weeks per child for each parent, taken until the child turns 18. This leave is usually unpaid unless the employer offers paid leave.

It is important to provide your employer with the correct documents, such as the parental order or proof of parenthood, to access your rights. Laws make sure intended parents through surrogacy are treated fairly in the workplace.

Frequently Asked Questions

Your pay during maternity leave depends on several rules about salary increases, additional work, and your rights to holiday and pension. You need to understand how working on Keeping In Touch (KIT) days affects your payments. Also, your entitlement to full pay and statutory pay follows specific legal guidelines.

What are the entitlements regarding pay rise during maternity leave?

If you are due a pay rise while on maternity leave, you are entitled to receive it. This applies whether your increase would affect hourly rates, bonuses, or other pay elements. The ruling supporting this is often called the ‘Alabaster ruling’ and ensures maternity leave doesn’t stop your pay from growing.

Can maternity pay be affected by additional work or Keeping In Touch (KIT) days?

You can work up to 10 KIT days during your maternity leave without losing your maternity pay. However, if you exceed these days, your maternity pay and leave may end automatically. Any work you do beyond this limit can stop your Statutory Maternity Pay.

How is holiday pay affected if not returning to work post-maternity leave?

If you decide not to return to your job after maternity leave, you are entitled to payment for any unused holiday days. This includes holiday accrued before and during your maternity leave. You should claim this pay from your employer if you don’t take the holiday time.

Am I eligible for my full salary while on maternity leave?

Most people do not get their full salary during maternity leave. Instead, you can receive Statutory Maternity Pay for up to 39 weeks. This usually pays 90% of your average weekly earnings for the first 6 weeks, then a fixed rate or 90% of earnings, whichever is lower, for the remaining weeks.

What are the current regulations governing maternity leave and remuneration?

You have the right to 52 weeks of maternity leave. The first 26 weeks is ‘Ordinary Maternity Leave,’ and the second 26 weeks is ‘Additional Maternity Leave.’ Statutory Maternity Pay lasts for up to 39 weeks. Agency or casual workers may qualify for Maternity Allowance instead.

How does maternity leave impact pension contributions and holiday entitlement?

During your maternity leave, your employer should continue pension contributions as if you were working normally. Your holiday entitlement also continues to build up throughout your leave. This means time on maternity leave counts towards your annual holiday allowance.

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