From time to time we are asked whether entitlement to family allowances (in accordance with the FAA) exists at the same time as entitlement to maternity compensation, or whether the entitlement to family allowances lapses during this period.
Maternity compensation (in accordance with the Loss of Earnings Compensation Act, LECA) is a replacement income which is treated in the same way as the salary under OASI legislation, and is thus subject to the obligation to pay OASI contributions. Employees are consequently entitled to receive family allowances in accordance with the FAA at the same time as maternity compensation.