Calculating top up maternity pay for monthly paid employee?

B

Bluebean

Registered User
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267
Morning,

one of my colleagues is going out on maternity leave shortly. She will be receiving state benefit for 6 months and plans to come back to work thereafter.

While she is out, the company will 'top up' her maternity pay.

Just wondering what is the method for calculating this? She is monthly paid, so supposing there is 20 working days in a month - do I divide the 280 euro maternity benefit by 5 days to give a daily rate of 56? And then multiply that daily rate by the number of working days in the month, which I then deduct from her gross wages?

Its the first time I've had this situation, even though I've worked in payroll for years.

Thanks in advance
 
The way it worked for me was that I disclosed to my employer how much I was getting for Maternity Benefit. They then deducted that amount from my gross wages and paid me the balance after tax.

Another way to do it is to get your employee to arrange for Social Welfare to pay the maternity benefit directly to the employer. The employer continues to pay the employee as normal (afaik) and then the employee does a tax return at the end of the year and receives a rebate for the difference as maternity benefit isn't taxable.
 
Thanks Greenqueen.

The first way you state below seems to match what I plan on doing - I find out how much state benefit my employee has received and pay her the balance.

For times such as shut down days over Christmas (company is closed for 3 days, employees must take holidays during this time), I assume the employee will be paid maternity benefit from the state as normal, so do I just add those 3 days to her accured holidays?
 
Holidays, bank holidays & discretionary days accrue until the end of the maternity leave. HTH
 
Presumably she gets paid the same every calender month, even though there are different numbers of working days per month, so the OPs suggestion sounds a bit over complicated.

Here is one suggestion.
She will be getting 280 per week for 26 weeks = 7280 for 6 months = 1213.33 per month.

Deduct 1213.33 from her gross wages every month for the 6 months.
 
Huskerdu,

that's def an easier option alright. Is it legally correct to do it that way do you know?

I'm still a bit confused as to the 3 'shut down' days at Christmas. Everyone else has to take them from annual leave. If the employee was working, she would not be working those 3 days anyway, she would have to take them from annual leave.

The way I see it, if we pay her for the 3 days and add 3 days holidays to her allowance, are we not double paying her for those 3 days?

Confused
 
Bluebean said:
Huskerdu,

that's def an easier option alright. Is it legally correct to do it that way do you know?
Click to expand...

Its financially correct and you have no legal obligation to pay her anything, so I dont see a problem.
 
ya, that's true. Makes it much easier for both her and me too, which is always a bonus!

Thanks
 

No - the other staff are on A/L, she is on mat leave. You also have to give her the public holidays when she returns.

When I worked in payroll - we got the SW deduction from the Dept of SW not from the employee.
 
Public hols I can understand as other people don't work them either, but they still get paid for them and they do not come out of annual leave allowance.

But as I see it, she's going to get paid for the 3 days at Christmas and she's also going to get 3 days added to her holiday balance. Just seems strange, I can't get my head around it!
 
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