Statutory Maternity Pay (SMP) is the minimum amount which can be paid to those taking maternity leave. All employees who are eligible can take up to 52 weeks maternity leave, split into 26 weeks Ordinary Maternity Leave and 26 weeks Additional Maternity Leave. SMP is payable for up to 39 weeks of that leave and typically kicks in at the same time maternity leave begins.
Who qualifies for SMP?
To qualify, the employee must:
- Be employed with a contract of employment.
- Have worked for at least 26 weeks by the end of the Qualifying Week, which is the 15th week before their due date.
- Be paid at least the Lower Earnings Limit for National Insurance.
- Give notice of the date they intend to start maternity leave and provide medical evidence of their due date (usually a MATB1 certificate).
If they don’t meet this eligibility criteria, Maternity Allowance can be claimed instead.
How much is Statutory Maternity Pay?
For the first six weeks Statutory Maternity Pay is paid at 90% of the employee’s average weekly earnings. The next 33 weeks is then paid at the statutory rate or 90% of their average weekly earnings, whichever is lower. From April 2025 the statutory rate is £187.18 per week. Both tax and National Insurance is due on SMP.
What help is there for employers?
Employers can recover up to 92% of SMP from HMRC. There are extra reliefs for SMEs in the form of Small Employers’ Relief, which allows the whole amount to be reclaimed, and up to 8.5% compensation too. This can be used to cover any additional costs, such as recruiting for a temporary replacement. The criteria for being a small employer involves NIC thresholds and your NIC liabilities, so it’s useful to seek advice from your accountant to check what’s available.
There are debates about whether maternity pay is enough, but from an employer perspective the ability to reclaim most, or even all, of SMP ensures that your team member can be offered financial support, whilst ensuring that you can budget for a temporary employee if needed. However, in line with your own values and ethos, you may choose to offer enhanced maternity pay beyond the statutory minimum.