Employers’ Maternity Leave Contribution

August 12, 2015 | 4 minute read

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Social contributions made by employers will be subject to changes pursuant to two Legal Notices which were published on the 11th August 2015 which social contributions shall come into force backdated with effect from 6th July 2015. These changes will have no effect on the rates or amounts of national insurance contributions due by employees. In principle, employers will contribute the equivalent of 0.3 per cent of the basic pay for every employee, irrespective of gender, to build up a fund from which the 14-week maternity leave will be paid.

257 of 2015 - Trusts and Trustees (Maternity Leave Trust) Regulations, 2015

This legal notice provides for the establishment of the Maternity Leave Trust, which trust, shall receive maternity leave contributions from employers as provided for in terms of the Tenth Schedule to the Social Security Act.

Employers that contribute to this Trust shall be entitled to reimbursement from the same Trust for any maternity leave payment paid to employees.

Any employer who is required to pay contributions in terms of the Tenth Schedule of the Social Security Act, and who fails to pay such contribution:

  • Shall be liable to fines and penalties as indicated by Part X of the Social Security Act, and
  • Shall lose his entitlement for any re-imbursement for maternity leave paid.

An employee shall be entitled to the first fourteen weeks of maternity leave with full wages, but if the employee chooses to avail herself of any additional maternity leave beyond the fourteen weeks, the employer shall not be obliged to pay any wages for maternity leave beyond the aforementioned fourteen weeks (without prejudice to any relevant benefit in respect of any period of maternity leave which goes beyond fourteen weeks in terms of the Social Security Act to which the employee may be entitled if she chooses to avail herself of maternity leave beyond the paid fourteen weeks).

258 of 2015 - Social Security Act (Amendment of Tenth Schedule) Order, 2015

This legal notice introduces the weekly rate of the contribution payable by the employer to the Maternity Leave Fund and shall come into force as of the 6th July 2015.

Category Type of Employed Persons Weekly Rate of Contribution Payable by the Employer
A  

Persons under 18 years of age whose basic weekly wage or the weekly equivalent of their basic monthly salary does not exceed €166.26

 

€0.20
B  

Persons over 18 years of age whose basic weekly wage or the weekly equivalent of their basic monthly salary does not exceed €166.26

 

€0.50
C  

Persons born on 31 December 1961 or before whose basic weekly wage or the weekly equivalent of their basic monthly salary exceeds €166.26 but does not exceed €343.11

 

0.3% calculated to the nearest cent of their basic weekly wage or the weekly equivalent of their basic monthly salary
 

Persons born on 1 January 1962 or after whose basic weekly wage or the weekly equivalent of their basic monthly salary exceeds €166.26 but does not exceed €418.25

 

D  

Persons born on 31 December 1961 or before whose basic weekly wage or the weekly equivalent of their basic monthly salary exceeds €343.11

 

€1.03
 

Persons born on 1 January 1962 or after whose basic weekly wage or the weekly equivalent of their basic monthly salary exceeds €418.25

 

€1.25
E  

Persons under eighteen years of age who are following a full-time course of studies or instruction under the Student-Worker Scheme, or other similar schemes (including the Extended Skills Training Schemes, but excluding the Worker-Student Schemes) involving distinct work and study periods for which they are receiving remuneration

 

0.3% calculated to the nearest cent of the basic weekly remuneration or the weekly equivalent of their basic monthly remuneration up to a maximum rate of contribution of €0.13
F  

Persons over eighteen years of age who are following a full-time course of studies or instruction under the Student-Worker Scheme, or other similar schemes (including the Extended Skills Training Schemes, but excluding the Worker-Student Schemes) involving distinct work and study periods for which they are receiving remuneration

 

0.3% calculated to the nearest cent of the basic weekly remuneration or the weekly equivalent of their basic monthly remuneration up to a maximum rate of contribution of €0.24

How can we assist

Nexia BT Limited is a proud specialist in the terms and conditions of this benefit. Those who have a query should contact the Payroll Department within the company at payroll@nexiabt.com.

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