Thinking about what is going to happen to your pension while you are on maternity leave may be one of your main concerns.
Arranging your finances within this period can seem daunting and overwhelming - there’s so much to consider. So, we’re here to answer your questions about your pension when you’re on maternity leave/
Does My Employer Still Contribute to My Pension?
Yes, so long as you are being paid while you are on maternity leave, your employer will continue to pay into your pension.
How Much Will My Employer Pay Into My Pension?
Your employer will continue to pay the same amount into your pension as they did before you went on maternity leave.
What if I Am Not Being Paid?
If you are not receiving maternity pay while you are on maternity leave, then your employer will still pay into your pension for the first 26 weeks of maternity leave. The first 26 weeks is known as ‘ordinary maternity leave’.
After this, your employer will still contribute to your pension if it is in your contract. As this is therefore personal, and much depends on your individual working contract, you should check this, and your employer’s maternity policy to check what pension contributions will be made within this period.
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Will I Still Contribute to My Pension?
You will remain contributing to your pension while you are on maternity leave, but your contribution will be quantified from your maternity pay rather than the amount you were being paid before you went on maternity leave.
This means that you may pay less into your pension while you are on maternity leave. Whatever percentage of your salary before you went on maternity leave you were paying into your pension, you will pay that same percentage of your maternity pay into your pension.
Can I Stop Paying Into My Pension?
You can opt out of your pension contributions while you are on maternity leave if your employer agrees.
If you can afford to, you should continue to pay into your pension. This is because you will be contributing less while your employer continues to pay the full amount of their original contribution during the time you are receiving maternity pay.
You should always try and keep an open line of communication with your employer about the details of your maternity pay, including your pension. This will keep you informed and at ease during this time, having received all of the facts!
