How is SMP calculated UK?
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. £156.66 or 90% of your average weekly earnings (whichever is lower) for the next 33 weeks.
Is SMP subject to NI?
SMP is based on your average earnings, which are subject to National Insurance, in the eight weeks or two months before the 15th week before your baby is due.
How much is SMP monthly?
For the first six weeks, SMP is paid at 90% of your normal earnings in the reference period. For the next 33 weeks, it is paid at the same 90% of your normal earnings or the flat rate, whichever is lower. Linda is paid monthly on the 26th of each month.
How much is SMP NI?
It is paid: for the first six weeks at 90 per cent of your average gross weekly earnings with no upper limit. for the remaining 33 weeks at the lower of either the standard rate of £156.66 (for the year 2022/23) or 90 per cent of your average gross weekly earnings.
How do I calculate my maternity pay?
SMP is 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.
Is SMP increasing in 2021?
The rate of statutory maternity pay is expected to rise to £151.97 from April 2021. The increase normally occurs on the first Sunday in April, which in 2021 is 4 April. Sunday 4 April 2021 also sees the first annual increase for statutory parental bereavement pay.
Did SMP increase April 2021?
the standard weekly rates of SMP, SAP, SPP, ShPP and SPBP will increase from £151.20 to £151.97 (or 90% of the employee’s weekly earnings if that amount is lower than the statutory rate) – it is assumed this will be for payment weeks commencing on or after Sunday, 4 April 2021.
What is SMP after tax and NI?
It can work out Statutory Maternity Pay (SMP), Enhanced Maternity Pay or Maternity Allowance and provides a monthly net pay amount after deducting your tax, national insurance, pension contributions and student loan. You just need your due date and salary to see an initial Statutory Maternity Pay forecast.
What will SMP be in 2021?
Once you have worked out your employee’s average weekly earnings, SMP is payable weekly as 90% of the employee’s average weekly earnings (AWE) for the first 6 weeks, or £151.20 (£151.97 for 2021/22 tax year) or 90% of their AWE (whichever is lower) for the remaining weeks.
How is SMP calculated?
SMP paid part weekly Divide the weekly rate by 7 and multiply by the number of days for which SMP is due in the week or month.
What is the SMP rate for 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. When an employee is pregnant, it’s imperative that they receive the correct maternity pay and leave entitlement that they deserve.
How does the SMP calculator work?
The SMP Calculator shows your monthly Statutory Maternity Pay after tax while on maternity leave. It can also work out your Enhanced Maternity Pay or Maternity Allowance and provides a monthly net pay amount after deducting your tax, national insurance, pension contributions and student loan.
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 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.
