SPM21025 Statutory Maternity Pay (SMP) - Paying SMP: Deductions from SMP

Deductions which can be made from SMP

SMP is replacement of earnings, not a benefit, so any deductions which the employer would normally lawfully make from wages can also be made from SMP, such as:

• superannuation
• an overpayment of wages
• trade union subscriptions
• pension contributions.

Deductions which can not be made from SMP

SMP is often paid to women whose contracts with the liable employer have ended. Therefore deductions such as the following cannot be made from SMP:

• Attachment of Earnings Orders, including Council Tax Orders
• Deductions of Earnings Orders for Child Maintenance and Enforcement Commission (in Scotland, Arrestment of Earnings Orders)

If in doubt contact PAYE, SA & NICs (Technical) Group.