Overview
The Maternity Leave Fund contribution is to be paid for all employees for whom the Class 1 Social Security Contributions are paid and for all employees (including Part-Timers) who are not eligible to pay Social Security Contributions but who are eligible for Maternity Leave according to the Employment and Industrial Relations Act (Cap. 452.).
There are certain employees who are exempt from Maternity Leave Fund contributions, which are highlighted in this article. To find more information on who may be exempt from Maternity Leave Fund contributions, or to check if one of your employees is exempt, you will need to contact the relevant authorities.
Maternity Leave Fund Contributions Calculation
The rates for Maternity Leave Fund contributions can be found here. The rate differs based on the employee's weekly basic wage which will categorise the employee into a Social Security Category.
The weekly basic wage of the employee is determined based on how the employee position is created. The 2 options are:
Based on the employee's salary
When the Weekly Basic Wage is determined by the employee's salary, there are 2 calculations that could be used depending on how the employee remuneration has been set. This can be set as a Annual Gross Salary or an Hourly Gross Salary. The below calculations show how the Weekly Basic Wage is determined in each case.
Calculation
Annual Gross Salary / 52 = Weekly Basic Wage
Example: The Annual Gross Salary of an employee is €24,000. Using this calculation above the Weekly Basic Wage is €461.54.
Hourly Gross Salary * Job Schedule Weekly Hours = Weekly Basic Wage
Example: The Hourly Gross Salary of an employee is €12.50 and the employee's Job Schedule Weekly Hours is 40 hours. Using this calculation above the Weekly Basic Wage is €500.
A Weekly Basic Wage based on the employee's salary cannot be used for irregular/casual employees, only those with a fixed Job Schedule.
Based on the employee's payslip
When the Weekly Basic Wage is determined by the employee's payslip basic amount, the below calculation is used to determine the employee's Weekly Basic Wage.
Calculation
(Payslip Basic Amount * Number of payrolls in a year) / 52 weeks = Weekly Basic Wage
Example: The Payslip Basic Amount of an employee is €2500 on monthly payrolls. Using this calculation above the Weekly Basic Wage is €576.92.
A Weekly Basic Wage based on the employee's salary cannot be used for irregular/casual employees, only those with a fixed Job Schedule.
With the Weekly Basic Wage determined, you can determine the relevant Social Security Category for the employee and therefore the needed rate for Maternity Leave Fund contributions. The contributions are then calculated using the below calculation:
Calculation
Maternity Leave Fund Rate * SSC Mondays = Maternity Leave Fund Contribution
Example: The Weekly Basic Wage of an employee born after 1st January 1962 in 2026 is €576.92. This means they are SSC Category D. The Maternity Leave Fund rate for Category D is €1.68/SSC Monday. Using this calculation above the Maternity Leave Fund Contribution in a payslip with 4 SSC Mondays is €6.72.
Exemptions from Maternity Leave Fund Contributions
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.