3 min read

What are Statutory Maternity Leave and Statutory Maternity Pay (SMP)?

If an employee is having a baby, they may be entitled to Statutory Maternity Leave and Statutory Maternity Pay (SMP). This guide explains who qualifies, how much leave and pay they’re entitled to, what you need to do as an employer and how you can reclaim SMP.

Who qualifies for Statutory Maternity Leave and Pay?

Statutory Maternity Leave: An eligible employee can take Statutory Maternity Leave regardless of how long they’ve worked for you, how many hours they work or how much they earn. However, they must give you the required notice and information. An employee must normally tell you at least 15 weeks before the baby is due, when the baby is due and when they want their leave to start. You must then confirm their leave start and end dates in writing within 28 days.

Statutory Maternity Pay: To qualify for SMP, an employee must:

  • have been continuously employed by you for at least 26 weeks up to and including the qualifying week, which is the 15th week before the week the baby is due
  • be on your payroll in the qualifying week
  • earn at least the minimum average weekly amount required for SMP
  • give you the correct notice
  • provide proof of the pregnancy.

Notice is normally at least 28 days before the date they want their pay to start.

Proof of pregnancy is normally a MATB1 certificate or a letter from a doctor or midwife.

The GOV.UK website has a step by step guide which includes special rules that can apply in some circumstances, including where a baby is born early.

How much is Statutory Maternity Pay?

SMP can normally be paid for up to 39 weeks.

The employee receives:

  • 90% of their average weekly earnings for the first six weeks
  • for the following 33 weeks, the current statutory weekly rate or 90% of their average weekly earnings, whichever is lower.

HMRC’s calculator can be used to check eligibility and calculate the amount due.

When can an employee take Maternity Leave?

An eligible employee can take up to 52 weeks’ Statutory Maternity Leave. This consists of 26 weeks’ Ordinary Maternity Leave followed by 26 weeks’ Additional Maternity Leave.

Maternity Leave can normally start up to 11 weeks before the expected week of childbirth. It may start automatically in certain circumstances, including if the baby is born early or the employee is absent because of a pregnancy-related illness during the four weeks before the baby is due.

An employee doesn’t have to take the full 52 weeks, but they must take at least two weeks after the birth, or four weeks if they work in a factory.

Maternity Leave and Statutory Maternity Pay (SMP) are separate entitlements. An employee can therefore continue to be on Maternity Leave after their 39 weeks of SMP has ended.

How do I pay Statutory Maternity Pay?

Pay SMP through your normal payroll, in the same way and at the same time as the employee’s normal pay. Income Tax and National Insurance are deducted where applicable.

Your payroll software should normally calculate the amount due and include it in your PAYE reporting.

What records do I need to keep?

You must keep records showing:

  • proof of the pregnancy
  • when SMP started
  • the dates and amounts paid
  • how much SMP you reclaimed
  • any weeks when SMP wasn’t paid and why.

Keep these records for three years from the end of the tax year they relate to. You can use form SMP2 or keep the information in your own records.

Can I reclaim Statutory Maternity Pay?

Yes you can reclaim Statutory Maternity Pay.

Most employers

You can normally reclaim 92% of the SMP you pay an employee.

Small employers

If you qualify for Small Employers’ Relief, you can reclaim all of the SMP plus additional compensation. Eligibility depends on the amount of Class 1 National Insurance you paid in the relevant tax year.

Payroll and reclaims

You’ll normally reclaim SMP through your payroll by submitting an Employer Payment Summary (EPS) to HMRC.

If you can’t afford to make the payments before you’re able to reclaim them, you may be able to apply to HMRC for funding in advance.
Most employers

You can normally reclaim 92% of the SMP you pay an employee.

Small employers

If you qualify for Small Employers’ Relief, you can reclaim all of the SMP plus additional compensation. Eligibility depends on the amount of Class 1 National Insurance you paid in the relevant tax year.

Payroll and reclaims

You’ll normally reclaim SMP through your payroll by submitting an Employer Payment Summary (EPS) to HMRC.

If you can’t afford to make the payments before you’re able to reclaim them, you may be able to apply to HMRC for funding in advance.

What do I do if an employee isn’t eligible for Statutory Maternity Pay?

If an employee doesn’t qualify for SMP, you must give them form SMP1 explaining why. You must provide the form within seven days of making your decision, and the employee must receive it within 28 days of their request for SMP or the birth, whichever is earlier.

The employee may be able to claim Maternity Allowance instead and may need their SMP1 when making the claim.

What other rights does an employee have during Maternity Leave?

An employee’s employment rights are protected while they’re on Maternity Leave. They continue to build up holiday entitlement, and their rights relating to matters such as pay rises and returning to work are protected.

Depending on their circumstances, they may also be eligible for other types of statutory leave or pay, including Shared Parental Leave and Pay, and Neonatal Care Leave and Pay.