Key facts
- SMP is paid for up to 39 weeks: 6 weeks at 90% of average weekly earnings, then 33 weeks at £184.03 (or 90% if lower).
- The employee must have been continuously employed for at least 26 weeks by the 15th week before the due date (the qualifying week).
- Average weekly earnings must be at least the Lower Earnings Limit (£125 per week) in the 8 weeks up to the qualifying week.
- Employers can reclaim 92% of SMP paid, or 103% if they qualify for Small Employers’ Relief.
- SMP is subject to Income Tax and National Insurance deductions, just like normal pay.
What Is Statutory Maternity Pay?
Statutory Maternity Pay (SMP) is the legal minimum payment that employers must make to eligible employees who are pregnant or have recently given birth. It is designed to provide financial support during maternity leave and is paid through the employer’s payroll.[1]
SMP is payable for a maximum of 39 weeks, split into two rates:
- Weeks 1–6: 90% of the employee’s average weekly earnings (no cap)
- Weeks 7–39: The lower of £184.03 per week or 90% of average weekly earnings
Qualifying Conditions
To qualify for SMP, the employee must:[2]
- Have been continuously employed by you for at least 26 weeks by the end of the “qualifying week” (the 15th week before the expected week of childbirth)
- Have average weekly earnings of at least £125 (the Lower Earnings Limit) over the 8 weeks ending with the qualifying week
- Give you at least 28 days’ notice (or as much as is reasonably practicable) of when they want SMP to start
- Provide medical evidence of pregnancy (the MATB1 certificate from a doctor or midwife, issued no earlier than 20 weeks before the due date)
- Have stopped working for you (SMP cannot be paid while the employee is still doing their normal job)
Key point: The qualifying week is the 15th week before the expected week of childbirth. Count back 15 Sundays from the Sunday before the due date to find the start of the qualifying week. The employee must have 26 weeks’ continuous service by the Saturday at the end of this week.
Calculating SMP
To calculate SMP:[3]
- Identify the relevant period for calculating average earnings (the 8 weeks ending with the last normal payday on or before the Saturday of the qualifying week)
- Calculate average weekly earnings over this period
- Check the earnings threshold: if average weekly earnings are below £125, SMP is not payable
- Calculate the 90% rate for weeks 1–6: 90% of average weekly earnings
- Apply the flat rate for weeks 7–39: the lower of £184.03 or 90% of average weekly earnings
| Period | Rate | Duration |
|---|---|---|
| First 6 weeks | 90% of average weekly earnings (no cap) | 6 weeks |
| Remaining weeks | £184.03 or 90% of AWE (whichever is lower) | 33 weeks |
| After 39 weeks | No SMP (statutory maternity leave continues unpaid to 52 weeks) | 13 weeks |
Reclaiming SMP from HMRC
Employers can recover most or all of the SMP they pay:[2]
- Standard recovery: 92% of SMP paid
- Small Employers’ Relief: 100% of SMP plus 3% compensation (103% total) — available to employers who paid £45,000 or less in total Class 1 NI in the previous tax year
Recovery is made by reducing the PAYE, NI, and student loan payments you send to HMRC. If the recovery exceeds what you owe HMRC, you can claim the difference through an advance funding request. Report the SMP recovered on your Employer Payment Summary (EPS).
Tip: Even though you reclaim most of the cost, SMP must be paid through your payroll to the employee. You cannot direct the employee to claim from HMRC. The employee receives SMP from you, and you recover the cost separately.
Processing SMP Through Payroll
SMP is processed through payroll just like normal wages:
- Deduct Income Tax using the employee’s tax code
- Deduct employee NI (if SMP is above the Primary Threshold for that period)
- Calculate employer NI on the SMP
- Deduct student loan repayments if applicable
- Report on the Full Payment Submission (FPS) to HMRC each pay period
- Report the SMP recovery on the Employer Payment Summary (EPS)
Maternity Leave Rights
While SMP covers pay, the employee also has the right to up to 52 weeks of maternity leave:[1]
- Ordinary Maternity Leave (OML): The first 26 weeks
- Additional Maternity Leave (AML): A further 26 weeks
- SMP covers only the first 39 weeks; the final 13 weeks are unpaid unless the employer offers enhanced maternity pay
- The employee must take at least 2 weeks of compulsory maternity leave after the birth (4 weeks for factory workers)
Frequently Asked Questions
When does SMP start?
SMP can start from the 11th week before the baby is due (the earliest start date). The employee chooses when to start, but it must begin no later than the day after the baby is born. If the employee is off work due to a pregnancy-related illness in the 4 weeks before the due date, SMP automatically triggers from the following day.
Can an employer reclaim SMP?
Yes. Most employers can reclaim 92% of the SMP they pay. Small employers (those who paid £45,000 or less in Class 1 NI in the previous tax year) can reclaim 100% plus an additional 3% compensation, totalling 103%. The reclaim is made by reducing PAYE payments to HMRC or through an Employer Payment Summary (EPS).
What if the employee does not qualify for SMP?
If the employee does not meet the qualifying conditions (e.g. they haven’t been employed long enough or earn below the LEL), the employer must issue a form SMP1 explaining why SMP cannot be paid. The employee may then be able to claim Maternity Allowance from the Department for Work and Pensions.
Can an employee work during the SMP period?
Employees can work up to 10 “Keeping in Touch” (KIT) days during the SMP period without losing any SMP. The employer and employee agree the pay for KIT days. Working more than 10 KIT days means SMP stops for any week in which the employee works after the 10 days are used.
Further Reading
- Statutory Paternity Pay (SPP) — the partner’s entitlement
- Shared Parental Pay (ShPP) — splitting maternity leave and pay between parents
- Statutory Adoption Pay (SAP) — similar entitlement for adopters
- Employer Payment Summary (EPS) — how to report SMP recovery to HMRC
- Statutory Sick Pay (SSP) — interaction between SSP and SMP
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