No 725 The Statutory Maternity Pay (Compensation of Employers) Amendment Regulations 2011

This Statutory Instrument has application to Northern Ireland and came into operation on 6/4/11.


Employers generally recover 92% of the Statutory Maternity Pay they pay. Small employers, those who have paid £45,000 or less in gross National Insurance contributions in the previous tax year, may recover 100% of the Statutory Maternity Pay paid out plus an additional amount. This additional amount is intended to compensate small employers for the employers’ share of the National Insurance contributions they pay on Statutory MaternityPay.

The calculation of the additional amount is set out in existing legislation. The rate must be looked at each year and amended to reflect the shift in the ratio between the Statutory Maternity Pay paid out and the employers’ share of the National Insurance contributions paid on Statutory Maternity Pay. This additional amount has been set at 4.5% since 6 April 2002. This year the calculation has shown that the additional amount must change from 4.5% to 3% from 6 April 2011.

The same reimbursement arrangements also apply to four other Statutory Payments -

Statutory Adoption Pay, Statutory Paternity Pay, Ordinary Statutory Paternity Pay and Additional Statutory Paternity Pay. The Statutory Paternity Pay and Statutory Adoption Pay (Administration) Regulations 2002 and the Additional Statutory Paternity Pay (Administration) Regulations 2010 provide for employers who make these payments to recover them at the same rate as Statutory Maternity Pay.

Last updated: 26 March 2019