Briefing Note - Calculating Statutory Maternity Pay

The Statutory Maternity Pay (General) (Amendment) Regulations 2005 came into force on 6 April 2005. The new legislation was necessary following a ruling by the European Court of Justice that a woman who receives a pay rise at any time before the end of her maternity leave must receive the benefit of this in the earnings-related part of her maternity pay.

Previously, earnings-related maternity pay was calculated on the basis of earnings in the fifth and sixth months of pregnancy, the set period used to perform the calculation. If a worker received a backdated pay rise while on maternity leave, the maternity pay only had to be recalculated if earnings in the set period were affected. The amendments require an employer to recalculate the level of maternity pay if a pay rise takes effect at any time between the start of the set period and the end of the maternity leave. Read about employers' liability for harassment here.