A Payroll And Paternity Pay Question

[camberwell fox]

Hi,

I don't know if anyone can help but I have a maternity / monthly pay question that hopefully one of you may be able to help with.

Lady X earns £25k per annum and is paid monthly.

The lady finishes work to go on Maternity Leave at the end of January and is paid her usual months pay.

February is made up of only 20 working days and she works the first two weeks (half a month) at her normal pay and the remainder at 90% of her pay.

The question is what should she be paid (gross) and how many days at what rate?

Thanks all.

 

[Blaarev]

Hi,

I don't know if anyone can help but I have a maternity / monthly pay question that hopefully one of you may be able to help with.

Lady X earns £25k per annum and is paid monthly.

The lady finishes work to go on Maternity Leave at the end of January and is paid her usual months pay.

February is made up of only 20 working days and she works the first two weeks (half a month) at her normal pay and the remainder at 90% of her pay.

The question is what should she be paid (gross) and how many days at what rate?

Thanks all.

Hmmm... difficult. Can you gives us some clues?

Oh, and how many marbles do the winner get?

 

[camberwell fox]

Hmmm... difficult. Can you gives us some clues?

Oh, and how many marbles do the winner get?

Very helpful Benelux :icon_bigg

 

[Blaarev]

Very helpful Benelux :icon_bigg

No clues then?

Ok, I'll have a go: 42

 

[Nottingham Fox]

Does Lady X work for a big company or a small company?

 

[Blaarev]

Worst quiz ever! I'm out.

 

[Nottingham Fox]

Does Lady X work for a big company or a small company?

It's not entirely relevant, I was just interested.

The fact there's 20 working days in Feb is irrelevant. Lady X is on a salary which is £25k per annum. This is £2083.33 per month and what should appear on Lady X payslip every month. This shouldn't fluctuate each month based on working days.

So working on £2083.33 as the monthly basic figure, £1041.66 is 50% (half a month) and the balance is £937.50 (90% of normal salary)

To my knowledge though, maternity pay is set at 90% of the normal salary for the first 6 weeks then 90% of your average weekly earnings (£432.69 in this case), but this is capped at £138.18 per week.

So I get the following figures:

Feb pay: £1979.16 (Gross)
March Pay: £1875.00 (Gross)
April Pay (for next 33 weeks /8 months): £598.78 (Gross)

The fact the remaining Feb weeks + March will technically be slightly over 6 weeks was the reason I was asking about the size of company. If it's a small company then I would use the discretion to pay as I've detailed above. It's not worth all the pissing around for the sake of a few quid.

I have one of my staff members going on maternity pay at the end of this month. She's part time and earns approximately £600 a month (works 2 days a week). As you can see above her maternity pay works out to £598.78 a month, so to save all the messing I will just continue to pay her as normal, rather than making endless changes in payroll.

 

[Cate Fox]

It's not entirely relevant, I was just interested.

The fact there's 20 working days in Feb is irrelevant. Lady X is on a salary which is £25k per annum. This is £2083.33 per month and what should appear on Lady X payslip every month. This shouldn't fluctuate each month based on working days.

So working on £2083.33 as the monthly basic figure, £1041.66 is 50% (half a month) and the balance is £937.50 (90% of normal salary)

To my knowledge though, maternity pay is set at 90% of the normal salary for the first 6 weeks then 90% of your average weekly earnings (£432.69 in this case), but this is capped at £138.18 per week.

So I get the following figures:

Feb pay: £1979.16 (Gross)
March Pay: £1875.00 (Gross)
April Pay (for next 33 weeks /8 months): £598.78 (Gross)

The fact the remaining Feb weeks + March will technically be slightly over 6 weeks was the reason I was asking about the size of company. If it's a small company then I would use the discretion to pay as I've detailed above. It's not worth all the pissing around for the sake of a few quid.

I have one of my staff members going on maternity pay at the end of this month. She's part time and earns approximately £600 a month (works 2 days a week). As you can see above her maternity pay works out to £598.78 a month, so to save all the messing I will just continue to pay her as normal, rather than making endless changes in payroll.

One of my team has just buggered off on maternity and our policy works the same as you have quoted Notts.

 

[camberwell fox]

It's not entirely relevant, I was just interested.

The fact there's 20 working days in Feb is irrelevant. Lady X is on a salary which is £25k per annum. This is £2083.33 per month and what should appear on Lady X payslip every month. This shouldn't fluctuate each month based on working days.

So working on £2083.33 as the monthly basic figure, £1041.66 is 50% (half a month) and the balance is £937.50 (90% of normal salary)

To my knowledge though, maternity pay is set at 90% of the normal salary for the first 6 weeks then 90% of your average weekly earnings (£432.69 in this case), but this is capped at £138.18 per week.

So I get the following figures:

Feb pay: £1979.16 (Gross)
March Pay: £1875.00 (Gross)
April Pay (for next 33 weeks /8 months): £598.78 (Gross)

The fact the remaining Feb weeks + March will technically be slightly over 6 weeks was the reason I was asking about the size of company. If it's a small company then I would use the discretion to pay as I've detailed above. It's not worth all the pissing around for the sake of a few quid.

I have one of my staff members going on maternity pay at the end of this month. She's part time and earns approximately £600 a month (works 2 days a week). As you can see above her maternity pay works out to £598.78 a month, so to save all the messing I will just continue to pay her as normal, rather than making endless changes in payroll.

Hi, this is what I thought. Small company employing around 25 employees. What we are being gold is that she receives (260/£25000) x 10 on full pay and then 10 days at 90% of the first 10 days. In essence a couple of hundred quid underpaid.

Are you sure about your calculations Notts (I a arrived at the same)?

Thanks.

Camberwell

 

[Nottingham Fox]

Hi, this is what I thought. Small company employing around 25 employees. What we are being gold is that she receives (260/£25000) x 10 on full pay and then 10 days at 90% of the first 10 days. In essence a couple of hundred quid underpaid.

Are you sure about your calculations Notts (I a arrived at the same)?


Thanks.

Camberwell

Just been discussing this with the wife. She works in HR for a large organisation.

What you have put is not unheard of, and you might need to ask some more questions. My initial thought is that in any normal circumstances I believe her salary would always be divided by 12 or 52 to work anything else out. I'm pretty sure her holiday entitlement would be the same. The annual allowance would be divided by 12 to work out the month by month pro rata amount. It appears on the face of it that to work maternity pay out using only 'working days' seems a little harsh and certainly favours the
employer. That said, if all other outcomes are worked out in this manner then I suspect there's very little you can do about it.

Edit: The most easiest way to see is to look back at previous wage slips. If the monthly salary is always the same, I think you would have reasonable ground to question their working out of maternity pay.

 

[Nottingham Fox]

This is off the Gov.uk website. These figures back up my original calculations. HTH

 

[camberwell fox]

Hi Notts,

The monthly pay is consistent. It is almost as if they are treating her as a leaver.

Yes, all calcations other than this are monthly.

 

[Motown Fox]

How does Paternity pay/leave work out? Particularly when they've not worked long for the company and get bonuses depending on performance.

 

[Siouxsie]

SMP is based on average weekly earnings and there is a precise definition of how this is calculated and what period it is based on ie not necessarily on the pay she was earning immediately before she goes off. However if she is being 100% for the first 2 weeks there is an element of occupational mat pay here as they have chosen to pay more than they are legally obliged to. Generally SMP is based on a daily rate, and if I remember correctly that is a 7 day rate ie 365 days in the year not working days so it can be paid according to how many days there are in the month. I have seen some payroll systems use daily rates. It would balance out as you get paid more in longer months and you get the same number of days worth over the entire period.
The calculations also may have got messed up a little due to the introduction of RTI as the pay date for SMP might be the actual day the payment is made rather than the last day of the month.

This might help:
https://www.gov.uk/statutory-maternity-pay-manually-calculate-your-employees-payments

https://www.gov.uk/maternity-paternity-calculator
But remember you should get a little extra for the first 2 weeks.

 

[fitz]

How does Paternity pay/leave work out? Particularly when they've not worked long for the company and get bonuses depending on performance.

I worked for a large company (Greggs plc) for 5 years and got **** all bar statutory paternity. Places tend to be less generous with that one.

 

[spionfox]

One of my team has just buggered off on maternity.......

Strange turn of phrase coming from a woman Cate :icon_bigg

 

[Macky]

Strange turn of phrase coming from a woman Cate :icon_bigg

And it was my understanding that buggery avoided all that maternity business

 

[Cate Fox]

Strange turn of phrase coming from a woman Cate :icon_bigg

Shush, you know what I mean :icon_bigg