Is maternity pay tax free?
Sorry do you mean what your employer gives you or what you get in benefits?
What your employer pays you.
Moet for me
Generally if your employer pays you he will pay you a top up to your net amount but yes you will have some more tax credits for the rest of the year.
What about maternity benefit - is that tax free?
yeh the amount paid by Social welfare up to €280 per week for 26 weeks is tax free.
Any payments received from your employer is taxed as normal. If your employer gives you your normal salary and you pay the social welfare payment to your employer, they may deal with it differently.
1. Pay you your normal net pay taking the benefit themselves that the first €280 per week is tax free.
2. Pay you your normal gross salary, this would mean as the first €280 per week is tax free you should get a higher net pay than previously.
I think that option one could be classed as being unfair by some employees but given the fact that if you get topped up for any period its at your employers discretion and that if you get normal salary it would in my book be fair for them for it to cost less as you arn't actually doing anything.
The 280 per week is the maximum by the way the actual depends on your actualy weekly salary. I think its based on earnings in 2005. but not 100% sure on that.