Statutory Maternity Pay (SMP) Explained for Employers and Employees: Eligibility, Rates and Key Responsibilities

Statutory Maternity Pay (SMP) is an important employment right for eligible employees and a key payroll responsibility for employers. It provides financial support during maternity leave for up to 39 weeks, subject to specific eligibility conditions, earnings requirements and statutory payment rates.

For employees, understanding statutory maternity pay eligibility, qualifying dates and payment rates can make it easier to plan maternity leave. For employers, understanding how to calculate, pay, report and reclaim SMP helps maintain accurate payroll and meet HMRC requirements.

Whether you are an employee preparing for maternity leave or an employer managing payroll, this guide explains statutory maternity pay UK rules, how SMP is calculated, the current statutory rate, employer responsibilities and where to find further guidance.

What Is Statutory Maternity Pay?

Statutory Maternity Pay (SMP) is a statutory payment made by an employer to an eligible employee during maternity leave. It can be paid for up to 39 weeks and is subject to qualifying employment and earnings conditions.

For the 2026/27 tax year, eligible employees generally receive:

• First 6 weeks: 90% of average weekly earnings before tax.
• Remaining 33 weeks: £194.32 per week or 90% of average weekly earnings, whichever is lower.

SMP is paid through the employer’s normal payroll. Income Tax and National Insurance contributions are deducted where applicable. Employers can generally reclaim a proportion of SMP from HMRC through the PAYE system.

If you want to understand who can receive SMP in more detail, see our guide to eligible employees.

Difference Between Statutory Maternity Pay and Maternity Allowance

Maternity Allowance is a government payment that may be available when an individual does not qualify for SMP. This can include certain self-employed individuals, people who have recently stopped working, or employees who do not meet the SMP employment or earnings requirements.

Unlike SMP, Maternity Allowance is claimed through the government rather than being paid through an employer’s payroll. The amount depends on the individual’s circumstances and the applicable statutory rules.

If you do not qualify for SMP, you may be able to claim Maternity Allowance instead. Employees should check their circumstances carefully before deciding which maternity payment applies.

How SMP Differs from Enhanced Maternity Pay

Enhanced Maternity Pay is additional maternity pay that an employer may offer under an employment contract or company maternity policy. Unlike SMP, enhanced maternity pay is not a statutory requirement.

An employer may provide full pay for a period, a percentage of normal salary, or another enhanced arrangement. The exact terms depend on the employment contract and company policy.

Employees should check their employment contract, maternity policy or staff handbook to establish whether they are entitled to enhanced maternity pay in addition to statutory maternity pay.

For official employer guidance, see Statutory Maternity Pay and Leave: employer guide – GOV.UK.

Statutory Maternity Pay Eligibility and Key Dates

Understanding statutory maternity pay eligibility requires employers and employees to consider employment length, average weekly earnings, the qualifying week and the expected week of childbirth.

Qualifying Week and Relevant Period

The qualifying week is the 15th week before the expected week of childbirth. To qualify for SMP, an employee must normally have been continuously employed by the same employer into the qualifying week and meet the other statutory conditions.

The employee’s average weekly earnings (AWE) are assessed over the relevant period. This is generally the eight-week period ending with the last normal payday on or before the end of the qualifying week.

The employee should provide their employer with appropriate evidence of the expected week of childbirth, normally a MATB1 certificate from a doctor or midwife when required.

Minimum Earnings Requirement for SMP

One of the key conditions for statutory maternity pay eligibility is meeting the applicable National Insurance lower earnings limit during the relevant period.

For the 2026/27 tax year, the relevant weekly earnings threshold for SMP is £129. Employers should use the current HMRC guidance and maternity pay calculator when checking an employee’s entitlement.

If an employee does not meet the earnings condition for SMP, they may instead qualify for Maternity Allowance depending on their circumstances.

Who Can Qualify for Statutory Maternity Pay?

Employees do not necessarily have to work full-time to qualify for SMP. Part-time employees can qualify if they satisfy the statutory conditions, including the employment and earnings requirements.

Agency workers and other employment arrangements can have specific rules, so employers should check the employee’s status and the applicable HMRC guidance before making a decision.

Pregnancy and maternity also provide important employment protections. An employer must not unlawfully discriminate against an employee because they are pregnant or taking maternity leave.

How Is Statutory Maternity Pay Calculated?

Calculating statutory maternity pay starts with establishing the employee’s average weekly earnings during the relevant period. The employer then applies the statutory SMP rules to determine how much the employee should receive.

Step-by-Step SMP Calculation

To calculate SMP, the employer generally needs to:

1. Identify the employee’s qualifying week and relevant period.
2. Calculate the employee’s average weekly earnings for the relevant period.
3. Check that the employee meets the statutory earnings and employment conditions.
4. Apply the correct SMP rate for each part of the 39-week payment period.
5. Deduct applicable Income Tax and National Insurance contributions through payroll.
6. Report the statutory payment correctly through the PAYE reporting process.

For the 2026/27 tax year, the standard SMP payment structure is:

This means the maximum standard weekly rate for the final 33 weeks is £194.32 for 2026/27. The first six weeks have no statutory weekly cap and are based on 90% of the employee’s average weekly earnings.

Income Tax and National Insurance on SMP

SMP is treated as earnings for payroll purposes. Employers should deduct Income Tax and employee National Insurance contributions where applicable, using the employee’s tax code and National Insurance category.

SMP should be processed through the employer’s payroll and included in the relevant Real Time Information (RTI) submissions to HMRC.

Employers should ensure that payroll software is configured correctly so that statutory maternity pay, deductions and employer liabilities are calculated accurately.

Using a Statutory Maternity Pay Calculator

A statutory maternity pay calculator can help employers establish the qualifying week, average weekly earnings, maternity leave period and applicable SMP amount.

However, a calculator should be used alongside the employee’s actual payroll records and the latest HMRC guidance. Where an employee has unusual pay arrangements, variable earnings or other circumstances affecting eligibility, the employer should check the calculation carefully.

HMRC provides an official maternity and paternity pay calculator to help employers work out SMP and related statutory payment information.

Statutory Maternity Leave and Employment Rights

Statutory Maternity Pay and Statutory Maternity Leave are separate concepts. An employee may be entitled to maternity leave even where they do not qualify for SMP.

How Long Is Statutory Maternity Leave?

Eligible employees can take up to 52 weeks of Statutory Maternity Leave. The first 26 weeks are known as Ordinary Maternity Leave and the following 26 weeks are Additional Maternity Leave.

Maternity leave can normally start from 11 weeks before the expected week of childbirth, although it may begin earlier if the baby is born early or in certain pregnancy-related circumstances.

Employees must generally take at least two weeks of maternity leave following the birth, or four weeks if they work in a factory.

Holiday Entitlement During Maternity Leave

Employees continue to build up their statutory and contractual holiday entitlement while on maternity leave. This means maternity leave does not normally stop holiday entitlement from accruing.

Where an employee cannot reasonably use their holiday before maternity leave, employers should consider how accrued holiday can be carried forward in accordance with employment law and the applicable contract.

Employment Protection During Maternity Leave

Employees retain important employment rights during maternity leave. Employers must continue to comply with relevant employment legislation and must not discriminate against an employee because of pregnancy, maternity or related protected circumstances.

Employees should also understand how maternity leave interacts with other family-friendly rights, including parental leave, paternity leave and Shared Parental Leave.

Parental Leave, Paternity Leave and Shared Parental Leave

Parental Leave is separate from maternity leave and is generally unpaid. Eligible parents can use it to take time away from work to care for a child, subject to the applicable rules.

Paternity Leave provides eligible partners with time away from work following the birth or adoption of a child. Shared Parental Leave can allow eligible parents to share up to 50 weeks of leave and up to 37 weeks of statutory pay.

The rules for these different types of leave and pay are separate from statutory maternity pay UK rules, so employers and employees should check the relevant eligibility requirements before making arrangements.

Statutory Maternity Pay for Employers: Responsibilities and Reporting

Statutory maternity pay for employers involves more than calculating the employee’s weekly entitlement. Employers must check eligibility, process SMP through payroll, maintain appropriate records and report statutory payments to HMRC.

How Employers Reclaim SMP

Employers can generally reclaim 92% of SMP paid to employees through the PAYE system.

Eligible small employers can benefit from Small Employers’ Relief. From 6 April 2026, qualifying employers can recover 100% of relevant statutory payments plus an additional 9% compensation, meaning they can generally reclaim up to 109% of qualifying statutory payments, including SMP.

Eligibility for Small Employers’ Relief depends on the employer’s Class 1 National Insurance liability and the relevant statutory conditions. Employers should check the current HMRC rules before calculating the amount they can reclaim.

Employer Payment Summary and HMRC Reporting

Employers generally reclaim statutory payments by reporting them through an Employer Payment Summary (EPS) as part of their PAYE reporting arrangements.

Accurate payroll records are important because the amounts reported to HMRC should match the SMP actually paid to employees. Payroll software can help automate calculations and statutory payment reporting, but employers remain responsible for ensuring the information submitted is correct.

Record Keeping for Statutory Maternity Pay

Employers must maintain records relating to SMP and maternity absence. These records should include relevant evidence of pregnancy, the date SMP began, SMP payments and dates, amounts reclaimed and any weeks where SMP was not paid and the reason why.

HMRC requires relevant statutory payment records to be kept for three years from the end of the tax year to which they relate.

• Employee’s maternity leave dates
• Evidence of pregnancy, such as a MATB1 certificate where applicable
• Dates and amounts of SMP payments
• Details of SMP reclaimed from HMRC
• Records explaining any weeks where SMP was not paid

Good record keeping supports accurate payroll administration and provides evidence if HMRC asks the employer to verify an SMP calculation or statutory payment claim.

Businesses looking for additional financial oversight can also explore management accounts services in London.

What Should an Employer Do If an Employee Does Not Qualify for SMP?

If an employee does not qualify for Statutory Maternity Pay, the employer should explain the reason clearly and provide the appropriate documentation required under HMRC rules.

An employee who does not qualify for SMP may be able to claim Maternity Allowance depending on their employment history, earnings and other circumstances. Employers should not assume that an employee has no access to maternity-related financial support simply because they do not qualify for SMP.

Employees should check the relevant government guidance and make any required claim for Maternity Allowance themselves.

What Happens If Statutory Maternity Pay Is Calculated Incorrectly?

An incorrect SMP calculation can result in an employee being underpaid or overpaid and may create additional payroll and compliance work for the employer.

If an employee believes their SMP is incorrect, they should first ask their employer to explain how the payment was calculated. The employer should review the employee’s qualifying week, average weekly earnings, employment history and payroll records.

Where an employer cannot resolve an SMP dispute, employees may be able to contact HMRC’s Statutory Payment Disputes Team for further assistance.

Employers should review payroll calculations promptly if an error is identified and keep a clear record of any correction made.

Common Statutory Maternity Pay Mistakes Employers Should Avoid

Several errors can cause problems when administering statutory maternity pay for employers. Common mistakes include:

• Using an outdated SMP weekly rate.
• Calculating average weekly earnings incorrectly.
• Failing to check the employee’s qualifying week.
• Overlooking the minimum earnings requirement.
• Applying the wrong SMP payment period.
• Failing to deduct the correct Income Tax or National Insurance.
• Reporting statutory payments incorrectly through payroll.
• Failing to retain required SMP records.
• Assuming an employee who does not qualify for SMP cannot receive Maternity Allowance.

Using current HMRC guidance and a reliable statutory maternity pay calculator can reduce the risk of payroll errors, particularly where employees have variable earnings or unusual pay arrangements.

Case Study: Statutory Maternity Pay Calculation and Employer Payroll Responsibilities

Priya visited our Fulham office after an employee informed her that they were expecting a baby. As a small business owner, Priya understood that maternity leave was an employment right but was unsure how Statutory Maternity Pay (SMP) should be calculated, processed through payroll and reclaimed from HMRC.

We reviewed the employee’s earnings and employment details to establish whether the statutory maternity pay eligibility conditions were met. The employee had been continuously employed into the qualifying week and their average weekly earnings were above the applicable earnings threshold.

We then worked through the SMP calculation. Their average weekly earnings were £500, so the first six weeks were calculated at 90%:

• Average weekly earnings: £500

• 90% of £500: £450 per week

• First six weeks: £2,700 before deductions

For the remaining 33 weeks, the employee would generally receive the lower of 90% of average weekly earnings or the statutory weekly rate. For 2026/27, that rate is £194.32, so £194.32 per week would apply.

We also explained that SMP must be processed through normal payroll, with applicable Income Tax and National Insurance deductions, and reported through PAYE. Priya learned that the business could generally reclaim 92% of SMP, while qualifying small employers may be able to reclaim more under Small Employers’ Relief.

The discussion gave Priya a clearer understanding that SMP involves more than simply paying maternity leave. Eligibility, calculations, payroll reporting, record keeping and HMRC recovery all need to be handled correctly.