Authorised Leave (T2)
What do I enter in the “Employer Pay” box if I have been on maternity leave?
The "Employer pay" box on the Type 2 form is used to record the pay you would have received if you had not been on authorised leave, such as maternity leave, paternity leave, adoption leave or sick leave.
Your tier rate is based on your “Employer Pay” but you only pay employee contributions on your actual pensionable pay.
For example, if your full salary would have been £50,000 per year, but you only received £25,000 due to maternity leave, you would enter £50,000 as the Employer pay and £25,000 as Actual Pensionable Pay.
The tier rate for your employee contributions would be 10.0% (based on £50,000), if this was your only role.
Can I confirm if on maternity leave the employer should still be paying 14.38% on what I would have earned had I not been on maternity leave?
The practice continues to pay employer contributions on the pay a GP would have received if you had not been on approved (maternity, paternity, adoption, or sick) leave.
What needs to happen if I have been on maternity leave for any time during the period for which the Type 2 form relates?
If you have been on maternity leave you need to select 'Yes' in Box F of the Personal Details tab and complete the Authorised Leave tab. Guidance on completing the Authorised Leave tab can be found in the Type 2 Guide and Video.
If you have been on maternity leave for any time during the period for which the Type 2 form relates and PCSE have not received a breakdown of earnings for this period, then your practice must submit a breakdown to us to enable us to continue to process your form and update your pension contributions accurately.
PCSE needs to be supplied with the Gross pensionable earnings on the breakdown with the corresponding employees contributions. The employer contributions will remain the same for the period of maternity leave.
The maternity breakdown form is available here.
I was on maternity leave for part of the financial year. Do I calculate the tier rate based on actual pay or deemed pay?
If you have had a period of maternity leave (or paternity, adoption or sick leave) the tier rate you need to use is the tier rate that applies to your deemed pay. You only pay contributions on the pay you actually receive.
While I'm on maternity leave, the employer should still be paying 14.38% on what I would have earned if not on maternity leave?
The practice continues to pay employer contributions on the pay a GP would have received if you had not been on approved (maternity, paternity, adoption, or sick) leave.
When does sick leave need to be recorded on the Type 2 form as authorised leave?
If the salaried GPs contract entitles them to sick leave, then this tab should be completed - as it should for maternity, paternity or adoption leave if the GPs contract stipulates it.
Please note, you can now complete and submit 2023/24 Type 2 forms on PCSE Online.