Can I pay an employee her statutory maternity pay in one lump sum? Do I need her consent?

Posted in : First Tuesday Q&A NI on 3 April 2017
Chris Fullerton
Arthur Cox NI
Issues covered:

Employers may, on occasion, be faced with the issue of whether to pay an employee her statutory maternity pay (SMP) in a lump sum. This might be where, for instance, the employee is leaving employment or where she is being made redundant but has already qualified for statutory maternity pay.

Employers can pay SMP in one lump sum providing that the rules relating to the payment of National Insurance contributions are adhered to. However, payment of SMP in this manner is generally not advisable because both the employer and the employee could end up paying more in NI contributions than if payments are made monthly or weekly.

Moreover, if an employer pays the SMP in a lump sum at the outset

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Back to Q&A's This article is correct at 03/04/2017

The information in this article is provided as part of Legal-Island's Employment Law Hub. We regret we are not able to respond to requests for specific legal or HR queries and recommend that professional advice is obtained before relying on information supplied anywhere within this article.

Chris Fullerton
Arthur Cox NI

The main content of this article was provided by Chris Fullerton. Contact telephone number is 028 9023 0007 or email

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