There is a difference between Statutory Maternity Pay and Maternity Pay. It is such a confusing subject, but we hope that we have simplified it a little here.

We have provided a basic outline of information, but if you are unsure please check with HM Revenue and Customs for your personal circumstances.

Maternity Pay

For babies due before 1 April 2007

If you qualify for Statutory Maternity Pay (SMP) or Maternity Allowance (MA) it will be paid for 26 weeks. i.e. during your Ordinary Maternity Leave (OML) period.

For babies due on after 1 April 2007

If you qualify for SMP or MA it will be paid for 39 weeks. As you will also qualify for 52 weeks maternity leave, SMP will be paid during your 26 weeks OML and for 13 weeks of your AML.

Statutory Maternity Leave

If you are paid through Pay As You Earn (PAYE) with tax and National Insurance deducted by your employer you may be entitled to SMP, as long as you meet the qualifying conditions. SMP is paid by your employer in the usual way. All employers can claim SMP back from HM Revenue and Customs.

You are entitled to SMP even if you do not intend to return to work and you cannot be asked to repay it. If you receive extra contractual maternity pay you can only be asked to repay it if it is stated in your contract or agreed with your employer.

To Qualify for SMP

To qualify for SMP you must have 26 weeks continuous service by the end of the 15th week before your baby is due.

To qualify for SMP you must also have earned at least £84 per week on average in the calculation period. The calculation period is the eight weeks, if you are paid weekly, up to and including the 15th week before your baby is due.

If you are paid monthly, the calculation period is usually based on the last two monthly payments received before the end of the 15th week before your baby is due.

Pay can include holiday pay, bonuses, overtime, sick pay and any previous periods of SMP but not Maternity Allowance.

Pay rises after the calculation period

If you are given a pay rise at any time between the end of your calculation period and the end of your maternity leave, even if it is not backdated, you are treated as having received it during the calculation period and your SMP should be recalculated so that you receive a backdated increase.

If you meet these conditions, you will be entitled to SMP. SMP is paid at 90% of your average earnings for the first 6 weeks and then at a flat rate of £108.85 per week or 90% of your average earnings if that is less. You will receive the flat rate for 20 weeks if your baby is due before 1 April 2007 and for 33 weeks if your baby is due on or after 1 April 2007.

You should check your contract as you may get more than the legal minimum. Your contract can offer you more but not less than SMP. The flat rate is expected to rise to £111 from 6 April 2007 and you will automatically receive the increase if it falls during your maternity pay period.

To claim SMP give your employer notice, see Notice below, and your MATB1 form. Your employer will work out whether you qualify for it. If you do not qualify for SMP, your employer must give you form SMP1. If you think your employer has done the calculation wrongly, or if they haven’t come to a decision within four weeks of giving notice for SMP, you can ask HM Revenue and Customs to intervene. Call your local tax office for details of how to do this.

Maternity Allowance

If you do not qualify for SMP, you may still be able to get MA. This is paid by the JobCentre Plus directly to you. MA is calculated for women who are, or have been, employed.

To Qualify for MA

To qualify for MA you must have worked for at least 26 weeks in the 66 weeks (15 months) before your baby is due. The work does not have to be continuous, or for the same employer.

You also need to find at least 13 weeks in the 26 weeks of work in which you earned at least £30 per week. The weeks do not have to be continuous or for the same employer and you can add together earnings from more than one job. You should use the 13 weeks where you were paid the most. Pay can include holiday pay, bonuses, overtime, sick pay and any previous periods of SMP but not Maternity Allowance.

Maternity Allowance is paid at a flat rate of £108.85 for the whole period or 90% of your average earnings if that is less. You will receive MA for 26 weeks if your baby is due before 1 April 2007 and for 39 weeks if your baby is due on or after 1 April 2007.

You can claim MA from your local Jobcentre Plus on form MA1. You will need to send your MATB1, 13 weeks’ payslips or written proof of your earnings and, if you are employed in the 15th week before your baby is due, form SMP1 from your employer stating why you are not entitled to SMP.

The JobCentre Plus will work out whether you qualify for MA. If you do not qualify for MA they should automatically check whether you are entitled to Incapacity Benefit (IB).IB is not means-tested but depends on whether you have paid or been credited with sufficient NI contributions in the previous 3 years.

The start of maternity leave and pay

The earliest you can start your maternity leave and pay is 11 weeks before your baby is due unless you give birth before then. It is up to you to decide when you wish to start your maternity leave and you can work right up to the birth if you wish. Your leave will start on the day stated in your notice.

If your baby is due before 1 April 2007

Your maternity pay will usually start on the Sunday after you start your maternity leave. However, if you are off work with a pregnancy-related absence in the four weeks before your baby is due, your employer can insist you start your maternity leave and your leave and pay will start the day after your first day of pregnancy-related absence. If you give birth before you start maternity leave, your leave and pay will start the day after the birth.

If your baby is due on or after 1 April 2007

The start of the maternity pay period has been brought into line with the start of maternity leave. SMP or MA will start on the same day as your maternity leave i.e. the day stated in your notice or, if applicable, the day after your first day of pregnancy-related absence or the day after the birth.

In order to qualify for maternity leave, you should notify your employer as soon as reasonably practicable if you are absent for a pregnancy-related reason in the four weeks before your EWC or if you give birth.

For more information you can visit www.workingfamilies.org.uk.