 |
|
 |
|
|
|||
|
|
  |
|
  |
 |
  |
|
|
 |
|||
 |
 |
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
 Home Resources Library Equality
Bargaining for better maternity pay - calculation guideDate: 15 May 2007
This guide helps you to calculate the approximate cost to employers of improving maternity pay above the statutory minimum. Large employers recover 92% of the cost of maternity 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!
The first six weeks of maternity payStep One - Calculate the current cost to the employer of paying maternity pay at 90% of average weekly earnings for the first six weeks.Average Weekly Earnings x 0.072 = Employer's Current Contribution x 6 = Total
Step Two - Calculate the cost to the employer of paying maternity pay at 100% of average weekly earnings for the first six weeks.Average Weekly Earnings x 0.172 = Employer Contribution at 100% x 6 = Total
Step Three - Calculate the cost to the employer.Total in Step Two minus Total in Step One = The total cost to the employer of paying maternity pay at 100%
The remaining 33 weeks of maternity payStep One - Calculate the current cost to the employer of paying maternity pay at £112.75 per week.SMP = £112.75 per week minus Inland Revenue contribution (£112.75 x 0.92) = £103.73 per week = Employer's Current Contribution of £9.02 per week.£112.75 - £103.73 = £9.02 Compare this with the examples of improvements to maternity pay set out below:
Example OneWhat if maternity pay was paid at 50% of Average Weekly Earnings?
Step Two - Calculate total maternity pay per week.Average Weekly Earnings x 0.5 = Total maternity pay per week*Note that if this figure is less than £112.75 (the statutory minimum) do not proceed - try Example Two at 75%.
Step Three - Calculate the employer's contribution.Total maternity pay per week from Step Two - £103.73 = Improved Employer Contribution (IEC)
Step Four - Calculate the cost per week to the employer of making this improvement.Improved Employer Contribution from Step Three minus Employer's Current Contribution from Step One = Cost per week
Example TwoWhat if maternity pay were paid at 75% of Average Weekly Earnings?
Step Two - Calculate total maternity pay per week.Average Weekly Earnings x 0.75 = Total maternity pay per week
Step Three - Calculate the employer's contribution.Total maternity pay per week from Step Two - £103.73 = Improved Employer Contribution (IEC)
Step Four - Calculate the cost per week to the employer of making this improvement.Improved Employer Contribution from Step Three minus Employer's Current Contribution from Step One = Cost per week
Example ThreeWhat if maternity pay were paid at 100% of Average Weekly Earnings.
Step Two - Calculate total maternity pay per week.Average Weekly Earnings = Total maternity pay per week
Step Three - Calculate the employer's contribution.Total maternity pay per week from Step Two - £103.73 = Improved Employer Contribution (IEC)
Step Four - Calculate the cost per week to the employer of making this improvement.Improved Employer Contribution from Step Three minus Employer's Current Contribution from Step One = Cost per week
(These rates are correct for the tax year 2007-2008). Bargaining for better maternity pay - calculation guide was correct at date of publication May 2007. Download File: If you do not have the software to download this attachment you can download it here. Resources Library Equality
Sort by Date | Sort by Subject  Printer Friendly Page  Email to a Friend
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Usdaw Home | News | Campaigns | Events | Store | Links | Join | Contact | Feedback | Site Survey | Privacy | Site Map |
|
© 2003 (USDAW) Union of Shop, Distributive and Allied Workers |
 |
