As a reminder to all Employers, as a result of Budget 2013 Maternity benefit will become taxable as of 1st July 2013. We had posted previously that under the current system, women do not have to pay any tax on the €6,812 of maternity benefit payments they get for six months after the birth of their child. But from July 1st they will have to hand back up to €2,700 to the Revenue because the payments will be taxed at up to 41% from that date.
Many women actually get more in their take-home pay while they are on maternity leave due to the way the system is currently set up. The State pays a maximum of €262 per week to a woman on maternity leave for six months or a total of €6,812. Around 90% of women on maternity leave get this amount. But many public and private sector employers opt to give a “top up” to ensure that a woman gets her full wages, and tax is only paid on this “top-up” payment, meaning that women on maternity leave often end up with more in their pay packet.
