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.

Frequently Asked Questions