When you are thinking about your maternity leave, inevitably you will begin to consider the way in which you are paid during this time. Will you receive your maternity pay in a lump sum or over time, as you would your normal wages? Given the choice, it is tempting to choose a large payment – but here we are going to explore the advantages of spreading your maternity leave out over a period of time.

Private vs public sector payments

While private sector companies can differ wildly in how they provide you with your maternity pay, in some public sector workplaces it is common to be offered a choice in how you are paid. For example, if you work with NHS trusts, you will normally be offered the opportunity to spread your pay evenly over the full length of your maternity period, providing a steady income like the one you are used to.

Earn more money

Because of the way maternity pay rates work, spreading your pay could actually mean you end up with more pay overall. This may sound strange, but the overall amount you receive is impacted by your deductions, such as tax or loan repayments and these will be lower than with a lump sum. However, you should double-check whether your employer is able to do this.

Returning to work

Your maternity pay period will be impacted by when you return to work. For example, if you plan to go back to work earlier than originally intended, then spreading your pay will not work in your favour. The pay will be spread across a time when you are in work, which could complicate your pay.

Spreading your pay and budgeting

Budgeting can be a challenge at the best of times, but it becomes even harder when you consider adding to your family. Receiving a lump sum of basic maternity pay can seem like a good thing, but you might find that this makes it much more difficult for you to budget across the entire maternity period.

Spreading your maternity pay seems like a good choice for so many reasons. However you receive your pay when taking maternity leave, clarity is the most important thing. With TopSource Worldwide UK Payroll Services, it is easy to access your payslips, and documents regarding any extra payments and details you may need in order to be certain that you are being paid fairly and correctly. So you can just enjoy your leave, and your new addition!