As part of the Work and Families Act there will be some significant changes to maternity pay entitlement for women whose babies are due from 1 April 2007 onwards. The due date should be taken from the maternity certificate MATB1 which the woman obtains from the midwife when she is about 20 weeks pregnant.

Women who qualify for statutory maternity pay (SMP) will be entitled to 39 weeks paid SMP. The first six weeks of their entitlement will be paid at 90% of their average pay. The remaining 33 weeks of the payments will be due at the lower rate of SMP which is currently £108.85.

HMRC have published some examples which show how the new entitlement will be calculated.

Internet link:

HMRC guidance on maternity pay changes