Statutory Sick Pay (SSP) and Statutory Maternity Pay (SMP) are payroll obligations that every UK employer needs to handle correctly. SSP is funded entirely by the employer, while SMP is largely recoverable: most employers reclaim 92%, and qualifying small employers reclaim the full amount plus a compensation percentage set by HMRC.
Statutory Sick Pay essentials
For sickness absences starting on or after 6 April 2026, SSP is paid from the first full qualifying day for up to 28 weeks.
| Item | Rule |
|---|---|
| Weekly rate | Lower of the flat weekly rate and 80% of average weekly earnings |
| Maximum duration | 28 weeks |
| Waiting days | None |
| Earnings threshold | None |
| Employer recovery | None (since 2014) |
Eligible employees can receive SSP regardless of earnings. SSP is taxable through PAYE and subject to NIC in the normal way.
Statutory Maternity Pay essentials
SMP runs for up to 39 weeks, with payments tapering after the first six weeks.
| Period | Rate |
|---|---|
| First 6 weeks | 90% of average weekly earnings |
| Next 33 weeks | Lower of the flat weekly rate or 90% of AWE |
| Weeks 40–52 | Unpaid (statutory maternity leave continues) |
Eligibility requires 26 weeks’ continuous service by the qualifying week (15th week before expected birth) and average weekly earnings at or above the National Insurance Lower Earnings Limit. The flat weekly rates for SSP and SMP are uprated each April and published on GOV.UK.
Recovery and Small Employers’ Relief
Most statutory parental payments — SMP, SAP, SPP, ShPP and SPBP — are partly recoverable through PAYE.
| Employer size | Recovery |
|---|---|
| Small (Class 1 NIC ≤ £45,000 in qualifying year) | 100% plus compensation set by HMRC |
| All other employers | 92% |
| SSP | 0% |
| Statutory Neonatal Care Pay | Same recovery percentages as other statutory parental pay |
You reclaim by reducing the PAYE payment to HMRC each month — set the recovery on the EPS under “statutory recovery and compensation”.
Operational checklist
- Capture and keep SC2 self-certification for first 7 days of sickness
- Get MATB1 for SMP (issued 20 weeks before expected birth)
- Recalculate average weekly earnings for each parental claim
- Set the right statutory payment indicators on the FPS
- Reclaim through the EPS; never apply directly to your bank
- Keep records for 3 years after the end of the relevant tax year
- Run a payroll routine each month to reconcile
Final pointers
Statutory pay and its recovery are handled in payroll software, and the payroll journal then goes into the books. Our partners can help through accounting help.