Statutory Maternity Pay for Nannies

All qualifying nannies have a right to Statutory Maternity Pay (usually abbreviated to SMP) during pregnancy, whether this is specified in their contract or not and a nanny enjoys the same benefits as any other employee. As with many other benefits, there are detailed and complicated rules governing the criteria for qualification and payment. However, PAYE for Nannies deals with all aspects of Statutory Maternity Pay on behalf of its clients and will ensure that if a client's nanny becomes pregnant the payment process operates smoothly. The basic principles which apply to the majority of cases of Statutory Maternity Pay are set out below.

Am employee qualifies for Statutory Maternity Pay if she becomes pregnant after the start of her employment and earns at least £90 per week. If she was pregnant before she started her employment, even if she did not know this at the time, she will not qualify for Statutory Maternity Pay.

An employee who qualifies for Statutory Maternity Pay is entitled to take up to 39 weeks paid Maternity Leave, usually commencing around the 29th week of pregnancy. The first 6 weeks of Maternity Leave are paid at 90% of the employees GROSS salary, less tax and National Insurance. A further 33 weeks are paid at a flat rate of £117.18 gross, less tax and NI. The employee is also entitled to take a further 13 weeks of unpaid leave at the end of the paid leave, making the maximum length of Maternity Leave 52 weeks. The employee remains employed throughout this period and the employer is required to allow the employee to return to their job at the end of their Maternity Leave.

The employer will normally be able to reclaim the whole of the Statutory Maternity Pay they have paid to the employee from the Revenue plus a small percentage in addition to this to compensate them for the additional employer's NI which has been paid.

If an employee does not qualify for Statutory Maternity Pay, they will normally be able to claim Maternity Allowance from the local Jobcentre Plus. Maternity Allowance is usually paid at a flat rate of £117.18 per week for up to 39 weeks. In these circumstances, the employer may treat the maternity absence as unpaid and will not need to reclaim anything from the Revenue.