Maternity Benefit is an income maintenance payment awarded by this Department to eligible women for a 26-week period on foot of a confinement. Entitlement to this benefit for employees is contingent on entitlement to statutory Maternity Leave. Under the provisions of social welfare legislation, the 26-week period of core statutory Maternity Leave attracts a payment from my Department — subject to certain social insurance contribution conditions being fulfilled. Maternity Leave legislation also provides an option for a woman to take an additional 16-week period of Maternity Leave that does not attract a benefit payment.
The Maternity Benefit scheme has been significantly improved, notably in the last few years, in terms of both the duration of the payment and the level at which it is paid. Budget 2006 provided for Maternity Leave — and thus Maternity Benefit payments — to be extended from 18 to 22 weeks. A further 4-week extension was implemented in the aftermath of Budget 2007 — bringing the total period of paid Maternity Leave and Maternity Benefit to the current level of 26 weeks. Under the Maternity Leave (Amendment) Act, 2004, the period of leave that must be taken before the end of the week during which the baby is due has been reduced from 4 to 2 weeks. Also, the final 4 weeks of Maternity Benefit can now be postponed in the event of a child being hospitalised. In terms of the level of payment, in 2000, the rate payable was the equivalent of €219.41 per week over 14 weeks — or €3,071 for the duration. Maternity Benefit is now paid at a weekly rate of €280 over 26 weeks — or €7,280 for the duration. This represents an increase considerably ahead of the rise in average industrial earnings. In addition, the rate of payment was increased from 70% to 80% of reckonable earnings, subject to minimum and maximum rates, in the Budgets of 2005 and 2006.
Some employment contracts may allow for additional periods of leave to be taken or for an additional top-up payment to be made above the normal entitlement to Maternity Benefit. These arrangements are discretionary private contractual arrangements agreed between employers and workers and, as such, are outside the realm of social welfare legislation. I am satisfied that the rates and duration of maternity benefit in Ireland represent a reasonable response to the income needs of women on maternity leave and can be favourably compared internationally.