HomeBusinessMaternity pay rates in the UK - and how they compare globally

Maternity pay rates in the UK – and how they compare globally

Tory leadership candidate Kemi Badenoch caused a backlash last weekend when she said maternity pay in the UK was “excessive” and called for greater “personal responsibility”.

Her comments – which she later backtracked on – ignited a new conversation about how mothers are supported while away from work. So what is maternity pay, who can get it and how does the UK rank?

What you need to know

Statutory maternity pay (SMP) was introduced in the UK in 1987.

Someone who is legally classed as an employee (our Money blog Basically on employment rights explains this) can get SMP if:

  • They’ve been working continuously for 26 weeks for the same employer before their ‘qualifying week’ (the 15th week before the baby is due);
  • They earn at least £123 a week on average for eight weeks before their qualifying week.

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

Some employers, however, may offer “enhanced” maternity pay packages for staff that have been with them for a certain length of time – such as 26 weeks’ basic pay, followed by 13 weeks statutory.

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

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All businesses legally have to offer at least the minimum statutory pay.

What is it worth?

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

After this, you’re paid whichever is lower:

  • £184.03 a week (the rate usually increases in April each year)
  • 90% of your average weekly earnings

Maternity pay is the same regardless of the number of children you have (eg twins or triplets).

If you take the full 52 weeks’ maternity pay, the last 13 weeks are unpaid unless your employer offers you an enhanced package.

Who pays for it?

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

If a company is smaller and has paid less than £45,000 in class one national insurance contributions in the last tax year, they can claim back the full SMP amount from the government plus 3% on top in small employers’ relief.

Larger employers can usually claim back 92% of SMP.

How does UK maternity pay compare with other countries?

The UK is ranked very differently on two different measures of maternity pay in the OECD (Organisation for Economic Cooperation and Development) – a 38-member group which looks at economic and social policy.

When it comes to overall pay, the UK sits towards the bottom of the pack – but it’s near the top when measured on the length of paid time women have the legal right to take off, according to research by the OECD in 2023.

A YouGov poll conducted amid the row over Ms Badenoch’s remarks has found that just 7% of Britons think maternity pay is currently too much – compared with 36% who think it’s too little, and 28% who think it’s about right.

Women (42%) were more likely than men (30%) to think it’s not enough.

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What if I can’t get statutory pay?

If you’re not entitled to statutory maternity pay, you might be able to claim maternity allowance for up to 39 weeks of your leave, which is paid directly from the government.

You can get this if you:

  • are employed but don’t qualify for SMP;
  • are self-employed;
  • have recently stopped working;
  • take part in unpaid work for the business of your spouse or civil partner.

If you’re employed or self-employed, you must have been registered as such for at least 26 weeks in the 66 weeks before your baby is due date.

You’ll need to have earned at least £30 a week for at least 13 of those weeks.

If you’re employed or have recently stopped working, you’ll be paid an allowance of £184.03 a week or 90% of your average weekly earnings (whichever is less). If you’re self-employed, you can get between £27 to £184.03 a week depending on how many class two national insurance contributions you’ve made in the 66 weeks before your baby is due.

Paternity pay

Fathers are also entitled to some pay and time off work when they welcome a child.

Like maternity pay, the statutory rate of paternity pay is £184.03, or 90% of your average weekly earnings – whichever is lower.

Typically, statutory paternity leave is for up to two weeks depending on eligibility, though some employers may offer more with their enhanced parental leave package.

Content Source: news.sky.com

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