Maternity Leave and Pension Contributions

Image result for maternity leave and pension contributions ukYou and your employer will continue to make pension contributions if you’re getting paid during maternity leave.

The amount you contribute is based on your actual pay during this time, but your employer pays contributions based on the salary you would have received if you were not on leave.

If you’re not getting paid, your employer still has to make pension contributions in the first 26 weeks of your leave (‘Ordinary Maternity Leave’).  

Additional Maternity Leave and Pension Contributions

You will need to check your employer’s maternity policy and your contract to find out if you and your employer will have to make pension contributions.  Your employer will have to carry on making contributions afterwards if it’s in your contract.  If you do stop contributing, your employer will also stop their contributions and you will be treated as a having left the scheme.

If you’re a member of a defined contribution pension scheme, you continue to pay contributions into the scheme while you’re on paid parental leave.

The Pensions Advisory Service can give advice and more detailed information

Pension Contribution Rate Changes

Related imageMinimum Contribution Rates for Workplace Pensions are changing

This table shows the minimum contributions you must pay and the date when they must increase

Date Employer minimum contribution Staff contribution Total minimum contribution
Until 5 April 2018 1% 1% 2%
6 April 2018 to 5 April 2019 2% 3% 5%
6 April 2019 onwards 3% 5% 8%

More information can be found here, including a letter template to send to staff