Making Work Pay Act

Making Work Pay Act - Amends part A (Temporary Assistance to Needy Families) (TANF) of title IV of the Social Security Act (SSA), with respect to rewards to States in which families leave welfare for work, to replace the caseload reduction credit with an employment credit. Requires the reduction of a State's minimum participation rate by the number of percentage points in the State's employment credit for the fiscal year.

Allows States to receive partial credit toward their work participation rate for recipients engaged in part-time work for an average of at least half the minimum average number of hours per week.

Removes from the work participation rate calculation for a entire year any TANF recipients who qualify for supplemental security income benefits under SSA title XVI.

Grants States the option to include recipients of substantial child care or transportation assistance in the work participation rate.

Repeals the separate work participation rate for two-parent families (thus lowering their rate to the one applied to one-parent families).