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DWP clarifies maternity pension rules

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In response to confusion over whether employers are required to pay pension contributions for workers on maternity leave, the DWP has clarified the guidelines.

Statutory maternity leave is split into 26 weeks of ordinary maternity leave (OML) and a further 26 weeks of additional maternity leave (AML). While employers are obliged to pay women a proportion of their salary during OML and the first 13 weeks of AML, there is no requirement for them to pay the worker during the final 13 weeks of AML.

HMRC has clarified that a woman on OML is entitled to her usual employer pension contributions as though she were being paid her usual salary. However she is only entitled to retain these contributions during AML if she is being paid.

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SOURCE:

http://www.ifaonline.co.uk/ifaonline/news/2103756/dwp-clears-maternity-leave-pension-confusion

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