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Increased Maternity Pay

March 2007

HMRC have updated their guidance on Statutory Maternity Pay (SMP) due to women whose babies are due on or after 1 April 2007. The important date is when the baby is due not when the baby is born. The changes are significant and include:

  • an increase in the maximum number of weeks SMP payable from 26 to 39. There is no change to the number of weeks paid at the earnings related rate being the first six weeks.
  • introducing keeping in touch days (KIT). Women can do some work during their SMP payment period and can be paid for the work done without losing entitlement to SMP.
  • increasing the notice period for women wishing to change their return to work date from 28 days to 8 weeks.
  • increasing the leave entitlement for all pregnant women to 52 weeks regardless of the length of service.

Please get in touch if we can give you further advice on these or other payroll issues.

Internet Link: Employers Bulletin 25