Maternity Pay Rules by Country - How Maternity Pay Works
Complete guide to maternity pay rules worldwide. Learn how maternity pay is calculated, pay rates, caps, and eligibility requirements in different countries.
How Maternity Pay is Calculated
Maternity pay calculation varies by country. Some countries pay a percentage of your average weekly earnings (e.g., 90% in UK for first 6 weeks, 55% in Canada, 80% in Ireland), while others use fixed weekly rates (e.g., £172.48/week in UK after 6 weeks, $882.75/fortnight in Australia). Some countries use a combination approach.
Percentage-Based Pay Systems
Many countries calculate maternity pay as a percentage of your average weekly earnings. Common percentages include: 90% (UK first 6 weeks), 100% (France, Germany, Spain), 80% (Ireland), 70% (Netherlands, Finland), 55% (Canada). The percentage is typically applied to your average earnings over a specific period before your leave starts.
Fixed Rate Pay Systems
Some countries use fixed weekly or fortnightly rates regardless of earnings. Examples include: UK (£172.48/week after 6 weeks), Australia ($882.75/fortnight), Ireland (€262/week standard rate). These fixed rates often apply when your percentage-based calculation would be lower.
Maximum Pay Caps
Most countries cap maternity pay at a maximum weekly amount. Examples include: Canada ($650 CAD/week), UK (uses lower of percentage or £172.48/week), Ireland (€262/week or 80% if lower). These caps ensure the system remains sustainable while still providing meaningful support.
Minimum Earnings Requirements
Most countries require you to earn a minimum amount to qualify for maternity pay. Examples include: UK (£120/week average), Canada (600 insurable hours), Ireland (minimum PRSI contributions). These requirements ensure you have a sufficient employment history.
Taxation of Maternity Pay
Maternity pay is typically subject to income tax and national insurance/social security contributions, just like regular salary. The amount shown in calculators is usually before tax deductions. Some countries may have specific tax treatments for maternity pay - check with your tax authority.