The Treasury Minister says there are no plans to bring in statutory maternity leave pay.
In a written Tynwald question, Douglas East MHK Joney Faragher asked Treasury Minister Dr Alex Allinson what the basis of Government responsibility for funding maternity leave is. She also asked how the funding source and payment level compare with neighbouring jurisdictions and whether any alternative approaches are being considered.
But Dr Allinson explained that no statutory maternity leave pay is in place in the island but employees can claim payments themselves.
In his response, Dr Allinson said: ‘On the Isle of Man, employers are not statutorily required to pay their employees during periods of maternity leave. However, this does not prevent an employer from offering payment through a contractual agreement or other arrangement at their discretion.
‘Employees may be eligible to claim maternity allowance from the Social Security Division of the Treasury which is currently worth up to £250 a week, can be paid for up to 39 weeks and is paid for out of the Manx National Insurance Fund.
‘Although this approach differs from the system in the UK, it is worth noting that UK employers operate under a scheme that allows them to reclaim costs incurred through statutory maternity pay from the Government.’
Dr Allinson went on to explain the other policies schemes in place to help working parents cope when starting a family.
He said: ‘Under the current administration, the Department for Enterprise has taken significant steps to ensure the Isle of Man is an attractive place to live, work, and raise a family.
‘This has been achieved through the introduction of a range of family-friendly policies designed to support flexible working arrangements while maintaining a fair balance for employers including the statutory right to time off to care for dependents and to attend ante natal appointments.
‘Most recently, the introduction of shared parental leave allows eligible families to manage their leave in a way that suits them.
‘The Treasury worked closely with the Department for Enterprise to ensure financial support is available during this leave for eligible parents by way of shared parental allowance. Thisallowance is also worth up to £250 a week and is paid for out of the Manx National Insurance Fund.’
But Dr Allinson went on to confirm there are no plans to introduce statutory maternity leave pay.
He said: ‘Currently there are no plans to move towards requiring employers to pay their employees while they are absent from work on maternity leave or shared parental leave.
‘The rates of all social security benefits are reviewed each autumn having regard to a number of factors and new rates are introduced from the beginning of the following tax year.’
Last month, Tynwald unanimously approved the new Shared Parental Leave Regulations which allow mothers and fathers to share up to 50 weeks of leave during the first year of their child’s life.
The move also updates existing maternity, paternity and adoption leave provisions. The measures came into force on November 1 completing the implementation of the Employment (Amendment) Act 2024.
Parents will be able to take leave simultaneously or in up to three separate blocks, subject to agreement with their employer.
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