The Department for Work and Pensions (DWP) has confirmed when employers must pay pension contributions for workers on maternity leave after confusion over the law.
Pregnant women are entitled to statutory maternity leave (SML), which consists of 26 weeks ordinary maternity leave (OML) and 26 weeks additional maternity leave (AML). Statutory maternity pay (SMP) is 90% of the woman's average weekly earnings for the first six weeks. This then reverts to £128.73 per week, or 90% of the woman's earnings, whichever is lowest, for the next 33 weeks. This leaves a period within AML of 13 weeks where the employer has no duty to pay its employee. Mike Carpenter, director at CBG Financial Services, said there is uncertainty among employers, advisers and...
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