International
UK and Ireland have the lowest levels of statutory maternity pay in Western Europe
By Finfacts Team
May 11, 2006, 12:10

For women earning €22,000 a year, the total pay accumulated after six months’ maternity leave would be just €5,300 in the UK and €5,850 in Ireland.  Entitlements in Germany would also be relatively low, at €5,900, along with those in France, Spain and the Netherlands, all at €6,750.  At the other end of the scale, pay received after six months’ leave in Italy would be €9,150 while in Denmark and Norway it would be as much as €11,000.

The research is part of Mercer’s global analysis of employment conditions and benefits, used by multinational organisations to help determine employee reward packages in countries worldwide.

Mark Sullivan, Worldwide Partner at Mercer, commented:  “While many aspects of employment law are becoming more standardised across Europe, large discrepancies persist in the area of maternity benefits.” 

He continued: “Laws have been extended in the UK to offer women longer maternity leave, yet pay levels are still very low compared to the rest of Europe.” However, he said: “More companies now offer benefits above the statutory minimum to create a more attractive employment package.”

In April 2007, new rules will be introduced in the UK that will improve the situation for women taking longer than six months' leave.

Results showed that Hungary has the highest level of maternity benefits in the Eastern European countries surveyed.  Using the same example, women there would be entitled to €7,100 after six months’ leave compared to €6,750 in Poland and €2,100 in the Czech Republic.

Maternity leave

The study also found that there were large differences in the number of weeks’ paid maternity leave in Western Europe.  In Sweden, Norway and Denmark, women are entitled to as much as 96, 52 and 50 weeks’ paid leave respectively, while those in France (for first and second child), the Netherlands and Spain are only entitled to 16 weeks’ leave.  German women get just 14 weeks’ paid leave. 

In Eastern Europe, women in the Czech Republic get 28 weeks’ leave, while those in Hungary are entitled to 24 weeks.  In Poland, women are allowed 16 weeks’ leave (for first child). 

“The length of maternity leave offered does not necessarily correlate to the level of benefits paid.  Some countries allow long periods of leave but give low pay, and not everyone can afford to take the extended leave no matter how generous it might appear,” said Mr Sullivan.

He added:  “It is important to look beyond maternity leave and benefits and also consider the culture in different countries and how willing companies are to provide career opportunities to women both before and after they have children.”

Comparison of maternity benefits

Maternity benefits paid

Based on £15,400 / €22,000 / $27,500 salary

Exchange rate as at December 2005 (US$1 = €0.80; US$1 = £0.56; €1= £0.7; €1= $1.25; £1= $1.79)

Note that the calculations are for women who have completed one year’s service and for normal pregnancy.

Notes:

Calculations are based on a woman earning £15,400 a year (which is equivalent to €22,000).  The figures in the release have been rounded to the nearest £50. Data is at March 2006.