Statutory Maternity Pay (SMP) is paid by the employer for up to 39 weeks to qualifying employees. Employers can then reclaim most or all of the amount from HMRC.
Qualifying Criteria
To qualify for SMP, the employee must:
- Have been continuously employed for at least 26 weeks by the 15th week before the expected week of childbirth (the "qualifying week")
- Earn at least the Lower Earnings Limit (£123 per week in 2024/25) on average in the 8-week period up to and including the qualifying week
- Provide the correct notice and evidence of pregnancy (a MATB1 certificate)
- Still be employed in the qualifying week (though they don't need to still be employed when the baby arrives)
Payment Rates
- First 6 weeks — 90% of the employee's average weekly earnings (no cap)
- Remaining 33 weeks — the lower of £184.03 per week or 90% of average weekly earnings
SMP is paid through payroll and is subject to tax and NI in the normal way.
Employer Recovery
- Small employers (annual NI liability ≤ £45,000) — recover 103% of SMP (100% plus Small Employers' Relief of 3%)
- Larger employers — recover 92% of SMP
Recovery is made by deducting the amount from your PAYE payments to HMRC.
Enhanced Maternity Pay
Many employers offer enhanced maternity pay above the statutory minimum. If you do, set out the terms clearly in your employee handbook — including any conditions (e.g., return to work requirements).
Our payroll team handles SMP calculations and recovery. Get support.