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So the way I understand it, is that they are deducted from you annual salary, that figure divided by 52 gives you a weekly number. Provide that weekly number is not lower than the statutory amount, you get paid the statutory amount.
PLUS, regardless of your maternity pay, your company continues to pay the childcare voucher amount?
For example, £10000 - £1000 voucher = £9000 salary, divided by 52 = £172 p/w - above the statutory limit, so the stat limit gets paid.
Is that right?
not a HR person but
your company continues to pay the childcare voucher amount?
my understanding is that the company isn't paying you - its a deduction from your salary [i]before tax[/i] - so its not a "freebie" its tax efficient thats all
antigee - I think what I meant was - you are recieving the minimum but statutory maternity pay, but the company is STILL obliged to pay the childcare vouchers up to the max (£243) - so whereas if you didnt opt for them you would not get £243 of tax free cash, this way you kind of are except your obliged to pay childcare.
ie, your company don't stop paying them just 'cause your on maternity.
Whilst on maternity leave you are still entitled to vouchers which the employer must pay. however as i understand it your maternity pay will be based on your salary minus the vouchers so you still pay for the vouchers, i think.
Ask your employer to explain.
In simple terms you still get your vouchers AND your full SMP by which i mean the SMP you would get without deducting the voucher value.
BUT taking the vouchers at a certain point in your pregnancy CAN impact your first six weeks pay, which is at a higher salary based rate AND possibly some benefit entitlements. Most people can't turn.the vouchers on and off so in practice this isn't that relevant. But in some cases it might pay to temporarily give the vouchers up at around six months pregnant if you can. HMRCs website www.hmrc.gov.uk will explain it better than I can but its all a bit convoluted!
yea, never straight forward, but If your vouchers are deducted through salary sacrifice then your SMP is based on the salary after the vouchers have been deducted. we do salary sacrifice.
i'm out of date according to my mate who advises small (and large)busineses suggest ignore my comment other than seems to depend if scheme was introduced as salary sacrifice or is a contractual benefit
generally treated as contractual benefit and paid as such - await the pro's in the morning