Understanding the Basics of PAYE and Maternity Leave

The information available about PAYE (Pay As You Earn) and maternity leave can be confusing for employers and employees alike. From understanding the tax implications to knowing how much leave you are entitled to take, there are a lot of questions that need to be answered. This blog post aims to provide an overview of the basics in order to help both employers and employees understand their rights when it comes to PAYE and maternity leave. Calculate your Paye Calculator ease

What is Maternity Leave?

Maternity leave is a period of time during which a pregnant woman or new mother is legally entitled to take time off work without fear of losing her job or being penalized financially. In the UK, all women who have been employed by their employer for at least 26 weeks prior to their due date are legally entitled to up to 52 weeks of maternity leave. A woman can choose how much of this time she takes off work; however, she must take at least two weeks of compulsory maternity leave immediately after giving birth.

How does PAYE Impact Maternity Leave?

In terms of taxation, an employee on maternity leave will still receive their normal salary; however, they may be subject to income tax if their salary exceeds certain thresholds set by HMRC. It is important for employers to understand this so they can ensure they make accurate deductions from any payments they make while an employee is on maternity leave. Furthermore, employers should also bear in mind that they will still have to pay National Insurance contributions while an employee is on maternity leave—even if no salary has been paid out—as long as the employee meets the eligibility criteria set out by HMRC.


Understanding your rights when it comes to PAYE and Maternity Leave can be daunting but it’s important that both employers and employees know what they’re entitled to in order for everyone involved to remain compliant with UK law. We hope that this blog post has given you some insight into these two topics so you feel better informed when making decisions about how best to handle them within your business or workplace environment. With a bit more knowledge under your belt, we’re sure you’ll feel confident navigating these issues going forward!

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