Statutory Paternity Pay (SPP) is the minimum amount UK employers must pay to employees who take time off work after the birth or adoption of a child, provided the employee meets certain eligibility criteria. SPP is paid for up to 2 weeks and is processed through the normal PAYE payroll system.
SPP rate
SPP is paid at a flat weekly rate or 90% of average weekly earnings, whichever is lower:
| Component | Amount |
|---|---|
| Weekly rate | Flat weekly rate or 90% of AWE (whichever is lower) |
| Duration | 1 or 2 weeks |
| Paid through | Normal payroll |
Unlike Statutory Maternity Pay, there is no initial period paid at 90% of earnings. The rate is the same for both weeks. The flat weekly rate is set by the government and uprated each April; the current figure is on GOV.UK.
Eligibility for SPP
An employee qualifies for SPP if they meet all of the following conditions:
- They are the biological father of the child, the mother’s spouse or civil partner, or the mother’s partner (including same-sex partners)
- They have 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)
- Their 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 (set for each tax year)
- They give the employer the correct notice
- They have responsibility for the child’s upbringing and are taking time off to care for the child or support the mother
Eligibility for Adoption
SPP also applies when a child is placed for adoption. The employee who is not taking adoption leave can take paternity leave and receive SPP, provided they meet the qualifying conditions with the matching date replacing the qualifying week.
Paternity Leave Entitlement
Statutory paternity leave is separate from SPP but closely linked:
| Feature | Detail |
|---|---|
| Total entitlement | 2 weeks |
| How it can be taken | 1 week, 2 consecutive weeks, or (from April 2024) 2 separate weeks |
| Must be taken within | 52 weeks of the birth or placement |
| Notice required | 15 weeks before the expected week of childbirth |
Since April 2024, paternity leave can be taken as two separate non-consecutive weeks at any point within the first 52 weeks. Previously it had to be taken in a single block within the first 56 days.
Notice Requirements
Employee’s Obligations
The employee must give the employer:
- 15 weeks’ notice before the expected week of childbirth (or within 7 days of being matched for adoption)
- The expected date of birth or placement
- Whether they want 1 or 2 weeks of leave
- The date they want leave to start (can be changed with 28 days’ notice)
The employee provides this information using form SC3 (birth) or SC4 (adoption), or the employer’s own form.
Employer’s Response
The employer must confirm the leave dates within 28 days of receiving the notice. If the employee does not qualify, the employer must explain why in writing.
Processing SPP Through Payroll
SPP is processed 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 SPP
- SPP is reported to HMRC through RTI on the Full Payment Submission
- SPP appears on the employee’s payslip and P60
Recovering SPP from HMRC
Employers can recover SPP costs from HMRC in the same way as Statutory Maternity Pay:
| Employer Type | Recovery Rate |
|---|---|
| Small employers (annual NIC liability ≤ £45,000) | 100% of SPP paid plus compensation set by HMRC |
| Other employers | 92% of SPP paid |
Recovery is made by reducing the monthly PAYE payment to HMRC. The amount is reported on the Employer Payment Summary (EPS) through RTI.
SPP and Shared Parental Leave
Employees eligible for SPP can also consider Shared Parental Leave. However, paternity leave and pay must be used before entering into a Shared Parental Leave arrangement. Once an employee starts Shared Parental Leave, any unused paternity leave is lost.
SPP and Pension Contributions
During paternity leave, auto-enrolment pension obligations continue. Employer and employee contributions are calculated on the actual pay received during the leave period.
Enhanced Paternity Pay
Many employers offer enhanced paternity pay above the statutory minimum as part of their benefits package. Common arrangements include:
- Full salary for the entire 2-week period
- A percentage of salary above the SPP rate
- SPP plus a top-up payment
Enhanced paternity pay must be at least equal to SPP. The statutory element can still be recovered from HMRC.
Employees Who Do Not Qualify
Employees who do not meet the SPP eligibility criteria cannot claim an alternative state benefit in the way that mothers can claim Maternity Allowance. The employer should explain in writing why the employee does not qualify.
Common reasons for non-eligibility:
- Fewer than 26 weeks of continuous employment at the qualifying week
- Average weekly earnings below the Lower Earnings Limit
- Not providing the required notice
- Not meeting the relationship or caring responsibility criteria
SPP and Accounting Records
SPP creates entries in the employer’s accounting records:
| Account | Debit/Credit | Description |
|---|---|---|
| Salary expense | Debit | SPP amount paid |
| Employer NIC expense | Debit | NICs on SPP |
| HMRC recovery | Credit | 92% of SPP, 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 |
Key Dates and Deadlines
| Event | Timing |
|---|---|
| Employee gives notice | 15 weeks before EWC |
| Employer confirms dates | Within 28 days of notice |
| Leave must be taken by | 52 weeks after birth/placement |
| SPP paid for | Up to 2 weeks |
| HMRC recovery | Via EPS each month |