Maternity Benefits - Bank holiday pay?

Plek Trum · 23-05-2014 2:35pm #1

Hello,

just looking for clarification please. I will (hopefully) be on maternity leave from end Nov 2014 until June 2015. I work in a small practice, no HR etc, it is usually up to employees to find out their entitlements and inform our employer (who is fine complying with same)

Regarding bank holidays while on maternity. I have calculated 7 bank holidays while I am out.

My confusion...

Are these to be paid or are they given as additional days leave upon my return?

If payable, are they to paid in advance when I leave work?

I presume if payable then they are subject to regular tax deductions etc. Should this be done on an individual day basis (one days wages minus deductions PAYE PRSI USC) - hence lower deductions OR added together as an accumulative figure and then taxed (seven days wages added together and then taxed - larger deductions)?

Appreciate all help. As before, we are a very small business, no HR.
Thanks!

Chattastrophe! · 23-05-2014 3:44pm

Does your employer give you a salary top-up while you're on leave?

NinjaTruncs · 23-05-2014 3:53pm

My wife had them added to her annual leave which she used to extend her maternity leave.

whomitconcerns · 23-05-2014 3:53pm

they would be added to your annual leave or paid when you return, at your employers discretion

Moonbeam · 23-05-2014 8:05pm

When I worked a 5 day week I got them added to my annual leave and when I worked a 3 day week I got paid for them while on (fully paid)maternity leave.

Plek Trum · 24-05-2014 11:36am

Chattastrophe! wrote: »

Does your employer give you a salary top-up while you're on leave?

No - no salary top up unfortunately so it will be Maternity benefit only. I have been full time for years though so will qualify so that's great. I was on another Irish baby website, and they said that the rate of maternity benefit was maxed at 280euro (80% of your normal salary to a max of 280euro)

Im not sure if this is still the case but will check it out - the little extra would be welcomed!

I think taking the 7 bank holidays as additional annual leave when I return would be better use of them. Bit of a buffer for tired days after sleepless nights or potential sick baby times.

Moonbeam · 24-05-2014 11:42am

Nope, it is 230 for everyone now.

Blingy · 24-05-2014 11:56am

Moonbeam wrote: »

Nope, it is 230 for everyone now.

And it's taxed.

Plek Trum · 24-05-2014 3:31pm

Blingy wrote: »

And it's taxed.

.... oh the joys....

Big Bag of Chips · 24-05-2014 3:43pm

I added them on as extra days at the end of my leave. So I can't comment on taxation etc...

But for me the days off were worth more than the wages!

Moonbeam · 24-05-2014 4:07pm

Big Bag of Chips wrote: »

I added them on as extra days at the end of my leave. So I can't comment on taxation etc...

But for me the days off were worth more than the wages!

The whole 230 is taxed .

sillysocks · 25-05-2014 10:37pm

I also got mine as additional days to extend my maternity leave.
As far as I know the taxation of maternity benefit only comes into play if you get paid a top up by your employer. If you're only getting mat benefit them you should get the full amount.

Moonbeam · 25-05-2014 10:58pm

or if you share tax credits with your spouse .

Plek Trum · 26-05-2014 8:43am

sillysocks wrote: »

I also got mine as additional days to extend my maternity leave.
As far as I know the taxation of maternity benefit only comes into play if you get paid a top up by your employer. If you're only getting mat benefit them you should get the full amount.

I wont be getting any top up from my employer - so maybe the 230 isn't taxed after all. Have had mixed advice re this - can anyone 'officially' advise through experience?

dizzymiss · 26-05-2014 8:49am

It is taxed. All of it. At 20%, whether or not you get a top up or not.

pwurple · 27-05-2014 7:07am

It's all taxed. If you earn enough for the rest of the year, or it's spread outacross two tax years, or your husband earn enough to consumeyourtax credits, then it's taxed at the highest rate. You will also be paying usc as well as paye.

It's ridiculously inequitable, the higher earners actually get less net maternity benefit now than the lower earners, despite paying more tax for years.

Sunny Dayz · 28-05-2014 4:34pm

It is taxed. You still get your €230 per week. But Revenue reduce down your tax credits in your employment to take into account the tax on the maternity benefit for when you go back to work later that year.

Moonbeam · 28-05-2014 5:07pm

or they adjust your husbands tax credits if you have given him yours.

Millem · 28-05-2014 9:16pm

If she started mat leave in November is the rate not €262 per week? It is taxable but prsi or USC isn't deducted

dizzymiss · 28-05-2014 9:30pm

Millem wrote: »

If she started mat leave in November is the rate not €262 per week? It is taxable but prsi or USC isn't deducted

Maternity benefit was reduced to a basic €230 for everyone in the last budget. You get tgat every week but your tax credits are adjusted for when you recommence work.

Millem · 28-05-2014 9:33pm

dizzymiss wrote: »

Maternity benefit was reduced to a basic €230 for everyone in the last budget. You get tgat every week but your tax credits are adjusted for when you recommence work.

Sorry I read the post wrong, I thought she had started maternity in November 2013. If you started before jan 2014 you still got to retain the €262 for the remainder of your maternity.

pwurple · 29-05-2014 9:24am

Sunny Dayz wrote: »

It is taxed. You still get your €230 per week. But Revenue reduce down your tax credits in your employment to take into account the tax on the maternity benefit for when you go back to work later that year.

That depends on how your tax is set up. Mine is less USC, less prsi, less paye and i put 50 quid a month of it into my pension. I see less than the 230 a week at the moment.

Sunny Dayz · 29-05-2014 9:30am

pwurple wrote: »

That depends on how your tax is set up. Mine is less USC, less prsi, less paye and i put 50 quid a month of it into my pension. I see less than the 230 a week at the moment.

All Social Welfare payments are exempt from USC.
http://www.revenue.ie/en/tax/usc/index.html

"From 1 July 2013 Maternity Benefit, Adoptive Benefit and Health and Safety Benefit are taxable. Universal Social Charge and PRSI are not payable." - Citizens information.
http://www.citizensinformation.ie/en/social_welfare/irish_social_welfare_system/claiming_a_social_welfare_payment/taxation_of_social_welfare_payments.html

Plek Trum · 29-05-2014 10:03am

Lots of contradictory information again (!) I think I'll pop to my local SW Office with my PPS number and clarify it from source there

pwurple · 29-05-2014 7:08pm

Sunny Dayz wrote: »

All Social Welfare payments are exempt from USC.
http://www.revenue.ie/en/tax/usc/index.html

"From 1 July 2013 Maternity Benefit, Adoptive Benefit and Health and Safety Benefit are taxable. Universal Social Charge and PRSI are not payable." - Citizens information.
http://www.citizensinformation.ie/en/social_welfare/irish_social_welfare_system/claiming_a_social_welfare_payment/taxation_of_social_welfare_payments.html

Thanks! Need to call my payroll dept!

Maternity Benefits - Bank holiday pay?

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