Statutory Maternity Pay (SMP) is the minimum amount UK employers must pay to employees who take time off to have a baby, provided the employee meets certain eligibility criteria. SMP is paid for up to 39 weeks and is processed through the normal PAYE payroll system.
SMP rates
SMP is paid at two different rates depending on the stage of the maternity pay period:
| Period | Rate | Duration |
|---|---|---|
| First 6 weeks | 90% of average weekly earnings (AWE) | Weeks 1–6 |
| Remaining 33 weeks | Flat weekly rate or 90% of AWE, whichever is lower | Weeks 7–39 |
The flat weekly rate is set by the government and uprated each April; the current figure is on GOV.UK.
The total maternity leave entitlement is 52 weeks (26 weeks of Ordinary Maternity Leave plus 26 weeks of Additional Maternity Leave), but SMP is only paid for the first 39 weeks. The remaining 13 weeks are unpaid.
Eligibility for SMP
An employee qualifies for SMP if she meets all of the following conditions:
- She has been continuously employed by the same employer for at least 26 weeks ending with the 15th week before the expected week of childbirth (the qualifying week)
- Her average weekly earnings in the 8 weeks (or 2 months for monthly-paid employees) ending with the qualifying week are at least equal to the Lower Earnings Limit for National Insurance, which is set for each tax year
- She provides proper notice — at least 28 days before she wants SMP to start, or as soon as reasonably practicable
- She provides medical evidence of the pregnancy (MATB1 certificate)
- She has stopped working for the employer
The Qualifying Week
The qualifying week is the 15th week before the expected week of childbirth (EWC). This is a critical date because:
- It determines the employment period needed (26 weeks of continuous employment up to and including this week)
- It determines the relevant period for calculating average weekly earnings
- It sets the earliest date from which SMP can be paid (11 weeks before the EWC)
MATB1 Certificate
The MATB1 (Maternity Certificate) is issued by a doctor or midwife no earlier than 20 weeks before the expected week of childbirth. It confirms the due date and is the formal evidence the employer needs to process the SMP claim.
Calculating Average Weekly Earnings
Average weekly earnings (AWE) determine both eligibility and the rate for the first 6 weeks of SMP. The calculation uses the relevant period, which is the 8 weeks (for weekly-paid employees) or 2 calendar months (for monthly-paid employees) ending with the last payday on or before the Saturday at the end of the qualifying week.
| Pay Frequency | Relevant Period |
|---|---|
| Weekly | 8 weeks ending with last payday on or before qualifying week Saturday |
| Monthly | 2 calendar months ending with last payday on or before qualifying week Saturday |
The AWE must reach at least the Lower Earnings Limit for the employee to qualify. AWE includes:
- Basic salary
- Regular overtime and shift allowances
- Bonuses paid in the relevant period
- Statutory Sick Pay received during the period
- Back pay that falls within the period
The Maternity Pay Period
The maternity pay period (MPP) is the 39-week period during which SMP is payable. It can start:
- On any day from the 11th week before the EWC — the employee chooses the start date
- Automatically on the day after the baby is born, if birth occurs before the chosen start date
- Automatically on the day after the first day of absence from work wholly or partly because of pregnancy in the 4 weeks before the EWC
The earliest SMP can start is the beginning of the 11th week before the EWC. The latest it can start is the day after the birth.
Processing SMP Through Payroll
SMP is paid through the normal payroll cycle and treated like regular pay for tax and NIC purposes:
- Income tax is deducted under PAYE using the employee’s tax code
- Employee NICs are deducted if earnings exceed the Primary Threshold
- Employer NICs are calculated on SMP
- SMP is reported to HMRC through RTI on the Full Payment Submission
- SMP appears on the employee’s payslip and P60
SMP Payment Example
For an employee earning £30,000 per year (£576.92 per week average), assuming an illustrative flat weekly rate of £190:
| Period | Calculation | Weekly Amount |
|---|---|---|
| Weeks 1–6 | 90% of £576.92 | £519.23 |
| Weeks 7–39 | Lower of £190 or 90% of £576.92 | £190.00 |
| Weeks 40–52 | Unpaid maternity leave | £0.00 |
Employer’s Right to Recover SMP
Unlike Statutory Sick Pay, employers can recover SMP costs from HMRC:
| Employer Type | Recovery Rate |
|---|---|
| Small employers (annual NIC liability ≤ £45,000) | 100% of SMP paid plus compensation set by HMRC |
| Other employers | 92% of SMP paid |
Recovery is made by reducing the monthly PAYE payment to HMRC. The employer reports the amount recovered on the Employer Payment Summary (EPS) through RTI.
Small Employer Relief
Employers qualify as small for SMP recovery if their total employer and employee Class 1 NIC liability in the qualifying tax year is £45,000 or less. Small employers also receive compensation, a percentage set by HMRC, to help cover the employer National Insurance paid on SMP.
Notice and Evidence Requirements
Employee’s Obligations
The employee must give the employer:
- 28 days’ notice of when she wants SMP to start (or as soon as reasonably practicable if 28 days is not possible)
- The MATB1 certificate as evidence of pregnancy and the expected week of childbirth
- Notice must include the expected week of childbirth and the date she wants SMP and maternity leave to begin
Employer’s Response
Within 28 days of receiving the employee’s notice, the employer must confirm in writing:
- The date SMP will start
- The date SMP will end
- The employee’s entitlement and rate
If the employer determines the employee does not qualify for SMP, they must provide form SMP1 within 7 days, explaining why. The employee can then claim Maternity Allowance from the Department for Work and Pensions instead.
SMP and Contractual Maternity Pay
Many employers offer contractual maternity pay (also called enhanced or occupational maternity pay) that exceeds SMP. Common arrangements include:
- Full pay for a set number of weeks, reverting to SMP
- A percentage of salary for an extended period
- SMP plus a top-up from the employer
When contractual maternity pay is at least equal to SMP, the employer is meeting the statutory requirement. SMP is offset against contractual pay — it is not paid on top of it. The employer can still recover the SMP element from HMRC.
SMP and Pension Contributions
During the maternity pay period, auto-enrolment pension obligations continue:
- Employer contributions must be based on the actual pay received (SMP or contractual maternity pay)
- Employee contributions are deducted from the actual pay received
- During the unpaid period (weeks 40–52), there is no obligation to make pension contributions unless the employment contract states otherwise
The employer’s pension contributions on SMP are a cost that cannot be recovered from HMRC.
Employees Who Do Not Qualify for SMP
Employees who do not meet the SMP eligibility criteria may be able to claim Maternity Allowance (MA) from the DWP instead. The employer must issue form SMP1 explaining why SMP is not payable.
Common reasons for non-eligibility include:
- Fewer than 26 weeks of continuous employment at the qualifying week
- Average weekly earnings below the Lower Earnings Limit
- Not providing the MATB1 certificate or proper notice
- Employment ending before the qualifying week
SMP and Accounting Records
SMP creates several entries in the employer’s accounting records:
| Account | Debit/Credit | Description |
|---|---|---|
| Salary expense | Debit | SMP amount paid |
| Employer NIC expense | Debit | NICs on SMP |
| HMRC recovery | Credit | 92% of SMP, or 100% plus compensation for small employers |
| Net salary payable | Credit | Amount paid to employee after deductions |
| PAYE liability | Credit | Tax and NICs owed to HMRC |
The SMP recovery reduces the overall cost to the employer, meaning the net expense is only 8% of SMP for most employers (or a small net gain for employers that qualify for Small Employers’ Relief).
Key Dates and Deadlines
| Event | Timing |
|---|---|
| Employee gives notice | At least 28 days before SMP start |
| MATB1 provided | Usually around 20 weeks before EWC |
| Employer confirms SMP | Within 28 days of receiving notice |
| Earliest SMP start | 11 weeks before EWC |
| SMP auto-triggers | Day after birth or pregnancy-related absence in last 4 weeks |
| SMP ends | After 39 weeks, or if employee returns to work |
| Maternity leave ends | After 52 weeks maximum |
Keeping In Touch (KIT) Days
During maternity leave, the employee can work up to 10 Keeping In Touch days without losing SMP. KIT days are optional for both parties and can be used for training, meetings or gradually returning to work.
Payment for KIT days is agreed between employer and employee. If the daily rate exceeds the SMP daily rate, SMP is still payable for that week — the employer pays the difference as contractual pay.