Bargaining for better paternity pay - calculation guide

Date: 04 January 2005

Bargaining for better paternity pay - calculation guide

This guide helps you to calculate the approximate cost to employers of improving paternity pay above the statutory minimum.

Large employers recover 92% of the cost of paternity pay from the Inland Revenue - the formula takes this into account.

The guide gives you a 'ballpark' figure - an approximate not an exact cost. The maths are simple - even if you are normally 'phased' by figures you will be able to do this!

• You will need a calculator.

• The guide assumes the employer currently pays the statutory minimum - ie at £102.80 per week.

• If you are not able to get exact figures concerning the take up of paternity pay - the DTI estimate that at any one time 3.5% of the workforce is absent on maternity leave - so you can use this figure. If anything this represents a slight overestimate where you are calculating costs for an employer in the retail sector given that there are fewer men in retail than in the workforce as a whole.

• If you are trying to make improvements to a scheme where the employer currently pays above the statutory minimum or if you need any help at all please feel free to contact either Ruth Cross, Women and Equalities Officer or Jo Bird, Research Assistant, Women and Equalities at central office on 0161 224 2804 or e-mail parentsandcarers@usdaw.org.uk .

Step One - Calculate the current cost to the employer of paying paternity pay at £102.80 per week.

£102.80 - £94.58 = £8.22

Compare this with the examples of improvements to paternity pay set out below:

Example One

Step Two - Calculate total paternity pay per week.

Average Weekly Earnings £

x 0.5 =

Total Paternity Pay £

Step Three - Calculate the employer's contribution.

Total Paternity Pay £

- £94.58 =

Improved Employer Contribution £

Step Four - Calculate the cost per week to the employer of making this improvement.

Improved Employer Contribution £

- £8.22 =

Cost Per Week £

Example Two

Step Two - Calculate total paternity pay per week.

Average Weekly Earnings £

x 0.75 =

Total Paternity Pay £

Step Three - Calculate the employer's contribution.

Total Paternity Pay £

- £94.58 =

Improved Employer Contribution £

Step Four - Calculate the cost per week to the employer of making this improvement.

Improved Employer Contribution £

- £8.22 =

Cost Per Week £

Example Three

Step Two - Calculate total paternity pay per week.

Average Weekly Earnings £

=

Total Paternity Pay £

Step Three - Calculate the employer's contribution.

Total Paternity Pay £

- £94.58 =

Improved Employer Contribution £

Step Four - Calculate the cost per week to the employer of making this improvement.

Improved Employer Contribution £

- £8.22 =

Cost Per Week £

Bargaining for Better paternity pay - calculation guide was correct at date of publication December 2004.

Download File:
Bargaining for better paternity pay - calculation guide [ pdf ]

If you do not have the software to download this attachment you can download it here.
This is a large document - which may take some time to display.
If you have problems viewing it, you can 'download' this file by 'right-clicking' the link, and saving the document to your desktop. Then, open the saved document in the normal manner.
[ Get a player/reader for this file here ]

 Printer Friendly Page

 Email to a Friend

© 2003 (USDAW) Union of Shop, Distributive and Allied Workers
This page: http://www.usdaw.org.uk/equality/resource_library/1104836875_24731.html
Last Modified: Tuesday, 21-Aug-2007 23:15:50 EST