How to calculate paternity pay for employees?

To calculate paternity pay for an employee, there are certain conditions that have to be fulfilled – you should be full time employed and have worked for more than 26 weeks. Also your weekly pay after deducting taxes should be £116. If the employee fulfills it then, he is eligible for paternity pay. The pay is usually around £145.18 a week or 90% of their weekly earnings. To calculate the exact amount, you can use the calculator given below. To learn on how to use the calculator refer to the section given below the calculator on ‘How to use the calculator?’

How to use the calculator?

To use the calculator you have to input the following –

Weekly pay - Input the weekly pay that you get after deducting taxes like income tax and national insurance.

Baby’s Due Date – Input the date on which the baby is expected as given by your doctor. It need not be the exact date.

Leave Start and End Date – Input the start and end date for which you intend to apply for the paternity leave.

Employment Status – Select from the drop down option – whether you are full time employed or part time employer. Select other if you are working on project or are a contractor or freelancer.

Employment Duration – Select from the two drop downs – less than or more than 26 weeks.

Hit the calculate button and see how much of paternity pay you are eligible for.

Calculate paternity pay with example

Case 1

Jim earns £300 a week. After deducting his taxes he receives £219 in his bank account. His baby is due on 20th of November 2018. He has been full time employee of XYZ Pvt Ltd since March 2015. Now since he is able to fulfill all the basic criteria, he will be eligible for statutory paternity pay. The leave request is for 1 week

Now the maximum amount permissible is £145.18 or 90% of the weekly amount (whichever is less is counted).

So Jim’s 90% of weekly pay is = (0.9 x 219)

= £197.1 which is greater than £145.18

So for one week’s paternity leave, Jim will get £145.18

Case 2

Alfred earns £185 a week. After deducting his taxes he receives £155 in his bank account. His baby is due on 10th of November 2018. He has been full time employee of XYZ Pvt Ltd since March 2015. Now since he is able to fulfill all the basic criteria, he will be eligible for statutory paternity pay. He has requested leave for 2 weeks.

So Alfred’s 90% of weekly pay is = (0.9 x 155)

= £139.5 which is less than £145.18

For two weeks = (139.5 x 2)

= £279

So for two week’s leave, Alfred will get £279

About the author

Sumit Agarwal
Sumit Agarwal (ACMA ACA India), the Managing partner of dns accountants is a highly respected accountant with expertise in helping owner-managed businesses.