Money blog: excessive? How UK maternity pay compares globally – with some surprises in the rankings | UK News

Basically, maternity pay is what women receive when they take time off work after giving birth.

Conservative Party leadership candidate Kemi Badenoch sparked a backlash at the weekend after claiming statutory maternity pay in the UK was “excessive”. So we decided to make it the topic of this week’s news. Basically… functionality.

The shadow housing secretary later backtracked, saying her remarks had been “distorted” and telling Sky News she thought maternity pay was “a good thing”.

So, what is statutory maternity pay and how much are workers entitled to?

What you need to know

Statutory Maternity Pay (SMP) was introduced in the UK in 1987.

A person who is legally considered an employee (our Employment Rights Foundation explains) can benefit from SMP if:

• They worked continuously for 26 weeks for the same employer before their “qualifying week” (the 15th week before the baby was born);
• They earn on average at least £123 per week for eight weeks before their qualifying week.

SMP is paid for up to 39 weeks out of the 52 weeks of leave offered to eligible employees.

Some employers may, however, offer “enhanced” maternity pay for staff who have been working for them for a while – such as 26 weeks basic pay, followed by 13 statutory weeks.

It is important to note that eligible women are still entitled to maternity leave and/or pay if their baby is stillborn after 24 weeks of pregnancy, or if born alive at some point but does not survive .

What is it worth?

For the first six weeks, SMP is paid at 90% of your average weekly wage.

After that, you are paid the lowest amount:

• £184.03 per week
• 90% of your average weekly salary

Maternity pay is the same regardless of how many children you have (for example twins or triplets).

If you receive the full 52 weeks of maternity pay, the last 13 weeks will not be paid unless your employer offers you an improved package.

Who pays?

The employer pays SMP to their employee first – but they can claim most, or even all, of the amount from HM Revenue and Customs, depending on the size of the business.

If a business is smaller and has paid less than £45,000 of First Class National Insurance contributions in the last tax year, they can claim the full amount of SMP from the government, plus 3% on top of that. relief for small employers.

Large employers can generally reclaim 92% of SMP.

How does UK maternity pay compare to other countries?

The UK is ranked very differently on two different measures of maternity pay within the OECD (Organization for Economic Co-operation and Development), a 38-member group concerned with economic and social policy.

When it comes to overall wages, the UK is at the bottom of the pack, but it’s near the top in terms of how much paid work women are legally entitled to take leave, research shows by the OECD in 2023.

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