You\u2019ve made it through what feels like the longest countdown in the world. Paused your career to take on a different role. You\u2019ve swapped 9 to 5 for 24\/7. Unfortunately, your pay most likely won\u2019t reflect this increase in hours or responsibilities. UK maternity leave does come with some financial support. However, it\u2019s not the same as having a consistent, full time wage. \u201cFinancial necessity\u201d is one of the most common reasons for 68% of mothers returning to work. <\/p>\n\n\n\n
But what if there was a way to top up your maternity leave entitlement? This article looks at how to make money on maternity leave, including some unusual ways to make money.<\/p>\n\n\n\n
There isn\u2019t a one-size-fits-all approach when it comes to UK maternity leave pay and entitlement. Instead, there are a few options available in terms of financial support. You may be eligible for one or more of them. First, we\u2019ll look at some of the options which are linked to your employment status (prior to taking leave). However, if you\u2019d like to earn extra money on maternity leave, we\u2019ll look at some side hustle ideas too.<\/p>\n\n\n\n
SMP is the minimum amount that a UK employer must legally pay their employee while they are on maternity leave. To qualify for SMP you must earn at least \u00a3125 a week on average and provide your employer with proof of your pregnancy and the correct notice. You must also have worked for your employer continuously for at least 26 weeks prior to the 15th week before the expected week of childbirth.<\/p>\n\n\n\n
SMP is usually paid to eligible employees for up to 39 weeks. For the first 6 weeks, you can earn 90% of your average weekly earnings (pre-tax). For the remaining 33 weeks, you\u2019ll either continue to earn this amount or \u00a3187.18 per week; whichever is the lower amount. <\/p>\n\n\n\n
Use a maternity leave calculator<\/a> to work out how much leave, pay, or allowance you could be entitled to.<\/p>\n\n\n\n Some employers offer maternity packages on top of Statutory Maternity Pay which can be a huge boost to both morale and your financial situation. Check your employer\u2019s maternity policy to see what may be on offer for you. <\/p>\n\n\n\n This option of maternity pay differs company to company. For example, insurance firm Aviva offers new parents 12 months\u2019 parental leave, with six months at full basic pay. Etsy offers their employees 26 weeks of fully-paid parental leave while Netflix offers 52 weeks of paid leave. Remember however, that your company may not have a maternity package so make sure you check.<\/p>\n\n\n\n KIT days are days during which you can work for your employer without your maternity leave ending prematurely. You can work up to 10 KIT days without your leave or pay stopping. <\/p>\n\n\n\n However, KIT days can only take place if both you and your employer agree to them beforehand. Similarly, you\u2019ll need to discuss pay in advance as there is no obligation for your employer to pay on top of SMP or the national minimum wage.<\/p>\n\n\n\n Taking a temporary hit to your wages during maternity leave can be difficult to manage. Whether you\u2019re someone who\u2019s careful with every penny or likes to leave the spending tap running.<\/p>\n\n\n\n But don\u2019t worry. There\u2019s ways to supplement your income and earn extra money on maternity leave. The OddsMonkey team will help you have a look at some of those in a moment but there are a few things to think about first. <\/p>\n\n\n\n For example, are you allowed to work while on maternity leave? You should be able to work on a self-employed basis without it affecting your SMP. You should also check your employment contract to make sure there\u2019s nothing in there to prevent you from doing so. However, working for your employer while on leave will most likely see your SMP stopped. Use KIT days if you want to do this.<\/p>\n\n\n\n You\u2019ll also need to make sure you\u2019re following the rules around tax and self-employment so you\u2019re paying the right amount of tax. The same rules apply in regard to paying tax on your total earnings whether you\u2019re on maternity leave or not. Inform HMRC as soon as you start earning money from your side hustle<\/a> and complete a Self Assessment form.<\/p>\n\n\n\n If you decide to start a new job during maternity leave, your SMP will stop the week you start the new job. This refers to being employed by a company rather than doing freelance work<\/a>. However, you can also do self-employed work without your SMP being affected. <\/p>\n\n\n\n Now that we\u2019ve taken a quick look at if you can make extra money on maternity leave, it\u2019s time to look at how to do it. Starting a side hustle can be a great way to boost your income. It gives you a chance to monetise your skill set and work at your own pace. This is perfect when you need to work around a baby.<\/p>\n\n\n\n 1 – Matched Betting<\/strong><\/p>\n\n\n\n 2 – Make Baby Clothes & Accessories<\/strong><\/p>\n\n\n\n 3 – Photography<\/strong><\/p>\n\n\n\n 4 – Freelance Copywriting<\/strong><\/p>\n\n\n\n 5 – Write Reviews<\/strong><\/p>\n\n\n\n Returning to work after maternity leave is a very personal decision to make. Sometimes, it may not be one that\u2019s entirely within your control. Factors such as childcare costs, inflexible working hours, or logistics may mean you have to change your employment structure.<\/p>\n\n\n\n In a Government publication, \u2018Employment pathways and occupational change after childbirth<\/a>\u2019, fewer than 29% of first time mothers, and less than one-fifth of all new mothers pursue a full-time job role following maternity leave.<\/p>\n\n\n\n A lot of the decisions made by mothers are onde for various considerations such as child-care and the costs involved, flexibility of the workplace etc.<\/p>\n\n\n\n In the three years following birth, mothers tend to stay in full-time or part-time roles. However, this is a different story over a 5 year period:<\/p>\n\n\n\n There\u2019s plenty of parents that choose not to return to work following maternity leave. This could make doing a side hustle after maternity leave even more appealing.<\/p>\n\n\n\n Depending on how much time the new little one allows you, you could consider some more time consuming but more rewarding side hustles. These might include affiliate marketing<\/a>, starting a dropshipping business<\/a> or freelance work from home<\/a>.<\/p>\n\n\n\nAdditional Maternity Pay<\/strong><\/h3>\n\n\n\n
Keeping In Touch (KIT) Days<\/strong><\/h3>\n\n\n\n
\n\n\n\nCan I Earn Extra Money On Maternity Leave?<\/h2>\n\n\n\n
5 Ways To Earn Extra Money On Maternity Leave<\/strong><\/h3>\n\n\n\n
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\n\n\n\nReturning To Work After Maternity Leave<\/h2>\n\n\n\n
You Might Return To Full Time<\/strong><\/h3>\n\n\n\n
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Not Returning To Work Following Maternity Leave<\/strong><\/h3>\n\n\n\n