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Huge variations in enhanced maternity pay; 2.7m in private sector miss out

by Benefits Expert
05/09/2024
Maternity pay, enhanced pay, pregnant employee women, DEI
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Research has highlighted a significant gap in enhanced maternity pay offered as a benefit, with private sector employees found to be missing out compared to public sector workers.

Almost all (97 percent) public sector employers offer staff enhanced maternity pay, compared to 75 percent of companies in the private sector, according to a survey by Brightmine.

This divide in provision reflects the higher proportion of female employees in the public sector (65 percent) compared with the private sector (44 percent).

Missing out

There might be a higher ratio of women to men in the public sector than there is in the private sector, but the data showed there are almost double the number of female employees in the private sector, 10.96 million, than in the public sector where there are 4.98 million. 

Researchers calculated that this means 2.74 million women working in the private sector are missing out on enhanced maternity pay, compared to just 149,400 in the public sector.

However, the research shows the number of organisations that offer enhanced maternity pay has increased by 10 percent since 2021.  The data revealed that the proportion of employers only offering the statutory minimum has fallen to 26 percent from 36 percent recorded in Brightmine’s 2021 survey. 

Right direction

Researchers said that length of service requirements are also moving in the right direction. In 2021, day one entitlement was offered by just 12 percent of organisations, but this has increased to 16 percent.

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Employers that require staff to have completed a year of service before they are eligible for maternity pay fell from 37 percent to 32 percent, however, organisations requiring people to be in a job for six months before they become eligible has risen to 27 percent up from 22 percent in 2021.

The length of time that employees offer enhanced maternity pay varies substantially between organisations. Some employers offer as little as one week of enhanced pay, while others offer 39 weeks.

The median period was found to be 18 weeks, while the most common period provided is 26 weeks offered by 30 percent of organisations. Sixteen percent provide enhance pay for 18 weeks and 14 percent enhance it for 12 weeks.

Dial is moving

Bar Huberman, content manager, HR strategy and practice at Brightmine, said: “While it is reassuring that the dial is moving in the right direction, more can be done to support working mothers – especially 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.

“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.”   

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The podcast from Benefits Expert, the title for HR, reward and benefits professionals.

Seasoned professionals examine the challenges and innovations in today’s employee benefits, reward and HR sector. Every episode, they will unbox a key issue and unpack what it really means for employers and how they can tackle it.

The regulars are Claire Churchard, editor of Benefits Expert; Carole Goldsmith, HR director at the Royal Horticultural Society, and Steve Herbert, consultant and rewards & benefits veteran.

Benefits Unboxed – Wellbeing: HR is supporting everyone, but who’s supporting HR?
byBenefits Expert from Definite Article Media

As the professionals responsible for helping their organisations navigate NI hikes, rising employee stress levels and looming redundancies, the pressure on HR, reward and benefits teams has never been greater. 

HR is expected to lead with strength and compassion. But who is supporting the supporters?

In this episode of Benefits Unboxed, co-hosts Claire Churchard, Carole Goldsmith and Steve Herbert explore the emotional and ethical pressures HR face today, from managing redundancies to implementing complex legislation. They discuss why HR’s own wellbeing may not be the first topic of conversation, the risks that poses to employers, and the practical steps businesses can take to better support the wellbeing of the people who support everyone else.

This conversation shines a light on the resilience of the profession and why looking after HR is not just the right thing to do, but a business imperative.

Benefits Unboxed – Wellbeing: HR is supporting everyone, but who’s supporting HR?
Benefits Unboxed – Wellbeing: HR is supporting everyone, but who’s supporting HR?
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Benefits Expert from Definite Article Media
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