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Maternity pay rules change 6 April 2007

The Work and Families Act of 2006 introduces some fundamental changes to Statutory Maternity Pay (SMP) for babies due on or after 1 April 2007.

The maternity pay period, for which SMP is payable, is extended from 26 weeks to 39 weeks. This is paid for the first six weeks at 90% of average weekly earnings. The remaining weeks are paid at the lower of the standard rate of SMP or the earnings related rate.

From 6 April 2007 the standard rate of SMP is increased from £108.85 per week to £112.75 per week.

Women who became pregnant before they started to work for their employer or who do not earn the national insurance lower earnings limit (currently £84 a week rising to £87 per week from 6 April 2007) are not entitled to SMP. They may however be eligible to claim Maternity Allowance (MA) which is a state benefit paid directly by the government to the employee. The payment period for MA is also extended for babies due from 1 April 2007.

For babies due from 1 April 2007 all mothers will be entitled to 52 weeks leave whether or not they qualify for SMP. Our payroll bureau based in Coventry offers advice and support in this specialist area. For assistance contact Monima Das on 024 7655 4321

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