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Enhanced payLatest NewsMaternityMaternity and paternity

Private sector employees miss out on enhanced maternity pay

by Jo Faragher 4 Sep 2024
by Jo Faragher 4 Sep 2024 Pic: Shutterstock
Pic: Shutterstock

More than 2.5 million women working in the private sector are missing out on enhanced maternity pay, according to data from Brightmine.

Brightmine found that there was a major gap between employers in the private sector, with 75% of companies offering enhanced maternity pay in the private sector, and 97% offering it in the public sector.

This means that by comparison, just 150,000 public sector employees miss out on enhanced pay, even though there is a higher ratio of women to men.

Brightmine’s research also revealed that the number of organisations offering enhanced maternity pay has increased by 10% since 2021.

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The statutory minimum (which is 90% of weekly earnings for the first six weeks and £184.03 or 90% thereafter), is now only offered at around a quarter of employers.

Furthermore, the proportion of organisations offering enhanced maternity pay as a day-one benefit has risen from 12% to 16% over the past three years.

Most require a full year of service, although this has fallen from 37% to 32%. Twenty-seven percent of organisations require six months’ services.

Brightmine also found the period for which enhanced maternity pay is given varies substantially between organisations – from as little as one week to as many as 39 weeks – with a median duration of 18 weeks.

The most common period provided is 26 weeks, offered by nearly one-third (30%) of organisations, while 16% enhance pay for 18 weeks and 14% enhance it for 12 weeks.

Bar Huberman, content manager for HR Strategy & Practice at Brightmine, said it was reassuring to see the dial moving in the right direction, but more could be done to support working mothers in the private sector.

“Some mothers decide to return to work much earlier than they would have liked after having a baby due to very little pay during maternity leave, which can take a toll on their health,” she said.

“Taking a proactive approach to building an equitable benefits package is key.

“Organisations that go above and beyond the minimum statutory requirements are likely to be rewarded with loyalty and engagement from existing members of staff and an improved ability to attract new talent.”

Earlier this year, a survey by Maternity Action found that a quarter of women have gone without eating while receiving statutory maternity pay.

 

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Jo Faragher

Jo Faragher has been an employment and business journalist for 20 years. She regularly contributes to Personnel Today and writes features for a number of national business and membership magazines. Jo is also the author of 'Good Work, Great Technology', published in 2022 by Clink Street Publishing, charting the relationship between effective workplace technology and productive and happy employees. She won the Willis Towers Watson HR journalist of the year award in 2015 and has been highly commended twice.

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Personnel Today
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