Can my employer refuse to pay childcare vouchers during maternity leave?

The issue of whether your employer needs to continue to pay your childcare voucher is dependant on whether the vouchers are provided as a benefit in addition to your salary or are paid under a salary sacrifice scheme.

You have stated in your e-mail that your vouchers are paid as part of a salary sacrificing scheme. This means that the vouchers amount to remuneration. This is important because the law states that when an employee is on maternity leave they are entitled to all of the benefits of their terms and conditions apart from remuneration. Remuneration is either paid in line with contractual maternity pay or statutory maternity pay which is 6 weeks at 90% of your salary and then £140.98 for 33 weeks ( subject to your earnings not being less than the lower earnings rate).

When your employer calculates the first part of your maternity pay they should do so based on your salary before any deductions and apply the deductions from this point. As your childcare vouchers will be suspended the contribution should not then be considered. If you are concerned that your maternity pay is not being paid at the correct rate you should raise this immediately with your employer.

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• Childcare Maternity Pay