What happens to your pension contributions on maternity leave?
If you have a defined contribution pension scheme, both you and your employer will continue to contribute to your pension while you are on maternity leave.
Your contributions will be based on the maternity pay you receive.
Your employer’s contributions will be based on your pre-maternity salary for any period of maternity leave where you are paid.
During the period of Ordinary Maternity Leave (first 26 weeks) and Paid Additional Maternity Leave, your employer is required to calculate their pension contributions based on your full pre-maternity salary, not on the reduced maternity pay you may be receiving.
This requirement applies whether you are entitled to:
Statutory Maternity Pay (SMP), or
Maternity Allowance, or
An enhanced/contractual maternity pay arrangement
Example
Jenny goes on maternity leave and is paid Statutory Maternity Pay (SMP). Her pre-maternity salary is £30,000 per year. Under her pension scheme:
Jenny normally contributes 5% of her salary to her pension.
Her employer contributes 3% of her salary under auto-enrollment rules.
What happens during maternity leave?
Jenny will contribute 5% of her SMP into her pension.
Her employer must continue to contribute 3% of her full pre-maternity salary (£30,000), not 3% of her reduced maternity pay.
Download your guide on How to check if your employer paid the right pension contributions during your maternity leave.
🚨 How to check what pension scheme you are enrolled into? 🚨
This applies to Defined Contribution Pension, you will need to check to see what pension you are enrolled into.
Look at your welcome pack or letters from the provider
When you were auto-enrolled, you should have received a letter from the pension provider.
This will include scheme details, how much is being contributed, and how to access your account.
Log in to your pension provider’s portal
If you know the provider, visit their website and log in (or register if you haven’t yet).
You can check your contributions as well as the type of pension scheme you have.
Check your employment contract or benefits package
Your contract may outline pension contributions, employer matching, and whether it's a defined contribution scheme.
