As a contractor working through an umbrella company, you are entitled to full statutory employment entitlements, including holiday pay, sick pay and maternity or paternity pay. Understanding your entitlements as a Danbro Umbrella employee is important, particularly if you’re planning a family or expecting a baby. Thankfully, this article will give you all the information you need about umbrella company maternity pay, paternity pay and statutory sick pay.
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Umbrella Company Maternity Pay
What is maternity pay?
Maternity pay provides income security while the mother is away from work to care for her newborn. Financial assistance during maternity leave ensures that mothers receive the financial support they need to take time off work to welcome their new baby. This support allows them to focus on their health and their newborn without the added stress of financial concerns.
Maternity Leave: If you’re expecting, focusing on both your health and your baby’s health is important. You are to take at least two weeks maternity leave following your birth, however, you can take up to 52 weeks of maternity leave.
- The first 26 weeks are classed as Ordinary Maternity Leave.
- The last 26 weeks are classed as Additional Maternity Leave.
Do umbrella companies pay maternity pay?
Yes, umbrella companies will pay your maternity pay as a contractor. You will either receive Statutory Maternity Pay or be able to claim Maternity allowance.
What is Umbrella Company Statutory Maternity Pay?
If you are eligible for Umbrella Company Statutory Maternity Pay (SMP), you will receive 39 weeks of Statutory Maternity Pay. For the first 6 weeks of your SMP, you will be paid 90% of your gross average weekly earnings (AWE). The remaining 33 weeks is paid either at the government prescribed amount or 90% AWE depending on whichever is lower.
Am I eligible for Statutory Maternity Pay an umbrella company employee?
The following conditions make you eligible for SMP as an umbrella employee:
- You need to have been continuously employed by Danbro Umbrella for 26 weeks by the 15th week before the expected week of childbirth (EWC).
- Check that you have average earnings equal to or greater than the Lower Earnings Limit (as set by the government). Currently, the minimum average earning to qualify for SMP must be at least £123 per week according to (gov).
- You must provide 28 days’ notice before the date you wish for your planned maternity leave to start.
- You must provide proof of your pregnancy via a MatB1 form.
Any further questions?
What if I don’t qualify for Umbrella Company Statutory Maternity Pay?
If you don’t qualify for umbrella company maternity pay you can still claim for maternity allowance. Your umbrella company will provide you with a completed SMP1 form. With that form you can make a claim for the Maternity Allowance with your local benefits agency. For more information on looking at how you can claim, you can look on the gov.uk website: Maternity Allowance: How to claim – GOV.UK (www.gov.uk)
What if my baby arrives earlier than expected?
If your birth is earlier than you expected, don’t worry. Maternity Pay is still available through your umbrella company.
The day-one right to neonatal care leave and pay
From 6th April 2025, parents will gain a day-one right to neonatal care leave and pay. This entitlement provides up to 12 weeks of additional leave. Eligible parents may also receive neonatal care pay on top of maternity or paternity leave entitlements. The day-one right applies if:
• Your baby is admitted to neonatal care up to 28 days old.
• They remain in hospital for 7 consecutive full days or more.
The aim of this new right is to support families and ease some of the emotional and financial strain during this challenging time.
Statutory Maternity Pay in Difficult Circumstances
When expecting, the thought of anything going wrong is the last thing you want to think about. But it is worth making yourself aware of your financial entitlements should the worst occur. So, in the tragic event that a baby is stillborn after the start of the 24th week of pregnancy or, if a baby passes away after birth, the mother will still be entitled to statutory maternity pay.
“During such a difficult time, your focus should be on your baby and your well-being—not on worrying about work or leave entitlements. This Employment Right offers much-needed support to ease some of the emotional and financial burdens, giving families the time they need to care for their child and themselves.” – Daniel Broughton
Umbrella Company Paternity Pay
What is Paternity Pay?
Paternity Pay is the financial support provided to the partner of a mother during paternity leave. The benefit of paternity leave allows the partner to take time off to support the mother and bond with the new child without ‘facing financial hardship’.
Paternity Leave applies if you are the child’s father, or the husband/partner of the mother (whether same sex or otherwise). Legally, you get time off to accompany your partner (or the surrogate mother) to 2 antenatal appointments. You are also entitled to either 1 or 2 weeks’ leave. If you choose to take 2 weeks, then you can take them together or separately. However, it is important to note that a week of leave is the same number of days that you normally work in a week. So, you cannot take odd days off as paternity leave. For example, if you usually only work 2 days a week then you will only be paid for those 2 days. Your leave cannot start before the birth and must end within 52 weeks of the birth (or due date if the birth is early).
Do umbrella companies pay Paternity Leave?
Yes, umbrella companies will pay your paternity pay. If you are entitled to Paternity Pay, you will receive Statutory Paternity pay.
What is Umbrella Company Statutory Paternity Pay?
Statutory Paternity Pay (SPP) is a benefit provided to eligible employees that can be claimed for up to two weeks. The payment is made at the current statutory weekly rate set by the Government, or, if your average weekly earnings are lower than this rate, at a rate equivalent to 90% of your average weekly earnings.
Am I eligible for Statutory Paternity Pay as an umbrella company employee?
The following conditions make you eligible for SPP as an umbrella company employee:
- You have worked continuously for Danbro Umbrella for a period of 26 weeks ending with the 15th week before the Expected Week of Childbirth (EWC).
- Earn an average of at least £123 a week (before tax).
- You must inform your umbrella company no later than 28 days (or four weeks) before the expected start date.
You must also fit one or more of the following conditions:
- You have or are expecting to have responsibility for the child’s upbringing.
- You are making the request to help care for the child or to support the child’s mother or adopter.
- You are the biological father of your child or the civil partner or partner of the person who gives birth to the child.
- If you’re having the baby through a surrogacy arrangement, then you must be the intended parent.
Any further questions? Just ask.
What if I don't qualify for Umbrella Company Statutory Paternity Pay?
If you don’t qualify for SPP, your umbrella company will provide you with a completed SPP1 form that explains why you do not qualify for Statutory Paternity Pay.
Umbrella Company Sick Pay
Do umbrella companies pay sick pay?
It’s completely natural to have occasions when you are too unwell to work. One of the advantages of being employed by an umbrella company is being entitled to statutory sick pay. Statutory sick pay is financial support for employees who are too ill to work. Statutory sick pay can be provided for up to 28 weeks and employees will receive a minimum of £116.75 per week. See Statutory Sick Pay (SSP) : Overview – GOV.UK (www.gov.uk).
Am I eligible for Statutory Sick Pay as an umbrella company employee?
To receive Statutory sick payment, you must meet the following conditions
- Have contacted Danbro Umbrella within seven days of the first day of being sick.
- Have worked and earned at or over the gross Lower Earnings Limit. This is set by the Government, and you can check the current gross Lower Earnings Limit here. Currently, the minimum average earning to qualify for SSP must be at least £123 a week.
- Have been off work sick for four or more days in a row. This includes non-working days as well.
Please note if you are already receiving Statutory Maternity Pay, you will not be eligible for Statutory Sick Pay.
Interested in finding out about Holiday Pay for umbrella company employees?
Everyone needs a break. Therefore, as an umbrella employee, you are entitled to receive holiday pay just like those in regular employment.
Click here for all the information you need…
For more information on statutory payments relating to Adoption and Surrogacy, find more information in the links below or feel free to contact us.
Adoption pay and leave: Overview – GOV.UK (www.gov.uk)
Shared Parental Leave and Pay: How it works – GOV.UK (www.gov.uk)
Contractor Maternity, Paternity & Sick Pay
Umbrella Company Employees are entitled to Statutory Maternity Pay, Statutory Paternity Pay and Statutory Sick Pay. In order to claim, you must ensure you meet the necessary requirements.
