How is Maternity Leave Fund (MLF) calculated?

Private-sector employers are obliged to pay a contribution for each employee to the maternity fund. Rates can be found here.

Note: If the employee’s age is equal to or above the age of 65 years then they are entitled not to pay MLF.

Maternity Leave Fund is calculated as follows:

Annual Gross / 52 = Weekly wage

Based on weekly wage, check the Category that the employee falls under.

Rate of Category * number of Mondays worked

For example:

Max Borg, born on the 1st of February 1980

Annual salary: €18,000 / 52

Weekly wage = €346.15

An employee with a weekly wage between €182.84 and €499.73 (born after 1962) falls under Category C2:

Therefore, MLF = 0.3% of weekly = €346.15 x 0.3% x 4 Mondays = 4.1538, rounded to 2 d.p., therefore, MLF is €4.15.

The below cases exempt employers from paying MLF:

In the case where employees work in the general government sector, authorities, agencies and public corporations;
In the case of employees who are on unpaid leave and are not paying NI;
In the case of directors who are on the FSS system but pay Class 2 Social Security Contributions (i.e. the self-employed rates);
In the case where employees are exempted from paying NI due to any of the following scenarios:
- They are over the age of 65;
- Certain low income irregular workers; and
- expatriate employees who pay NI in another country.

If you want information on how SSC is calculated, click here.