How much is the lower rate SMP?

How much is the lower rate SMP?

Statutory Maternity Pay ( SMP ) is paid for up to 39 weeks. You get: 90% of your average weekly earnings (before tax) for the first 6 weeks. £151.97 or 90% of your average weekly earnings (whichever is lower) for the next 33 weeks.

What is the lower earnings limit for SMP?

To qualify for SMP your average weekly earnings must be at least equal to the lower earnings limit (LEL). The LEL that applies to you is the one which is current on the Saturday at the end of your qualifying week. The LEL changes every year. The LEL is £120 in the 2020-2021 and 2021-2022 tax years.

How much was SSP 2010?

New SSP rate The weekly rate of SSP for days of sickness from 6 April 2010 is £79.15.

What is the SMP calculation period?

An employee’s statutory maternity pay (SMP) entitlement is calculated in accordance with their weekly earnings during the period of eight weeks that immediately precede the 14th week before their expected week of childbirth.

How common is full sick pay?

The most common definition of “pay” in occupational sick pay schemes is to provide full pay including SSP. This arrangement is used by 61.7% of employers across the whole economy, rising sharply to 92.6% among those in the public sector.

What is UK sick pay?

Overview. You can get £96.35 per week Statutory Sick Pay ( SSP ) if you’re too ill to work. It’s paid by your employer for up to 28 weeks. You can get more if your company has a sick pay scheme (or ‘occupational scheme’) – check your employment contract.

How is SMP worked out?

SMP is be calculated by averaging your earnings over a period of at least 8 weeks up to and including the last pay day before the end of the qualifying week. For monthly-paid employees, For weekly-paid employees, the last eight pay slips before the end of the qualifying week are taken into account.

What is the maximum SMP rate after initial 6 weeks?

Weekly SMP rate after initial 6 weeks: this is a maximum of £151.97 per week. When an employee is pregnant, it’s imperative that they receive the correct maternity pay and leave entitlement that they deserve.

What is the SMP rate for the 2021 – 2022 tax year?

Recent Update: For the 2021 – 2022 Tax Year: Minimum weekly pay to qualify for SMP: this will remain at £120 per week. Weekly SMP rate after initial 6 weeks: this is a maximum of £151.97 per week.

What is the SMP rate for maternity pay and leave?

Minimum weekly pay to qualify for SMP: this will remain at £120 per week. Weekly SMP rate after initial 6 weeks: this is a maximum of £151.97 per week. When an employee is pregnant, it’s imperative that they receive the correct maternity pay and leave entitlement that they deserve.

What are the tax implications of having an SMP?

SMP is treated as earnings so your employer will take off income tax and NI contributions. Your employer may also make other deductions that would be made from your pay such as trade union subscriptions and pension contributions.