Statutory Adoption Pay: employer rules

Statutory Adoption Pay (SAP) is paid for up to 39 weeks to an employee who is adopting through a UK agency, adopting from overseas or becoming a parent through a surrogacy arrangement. For 2026 to 2027 it is 90% of average weekly earnings for the first 6 weeks, then £194.32 a week or 90% of earnings if lower. Adoption leave is available from the first day of employment, but pay needs 26 weeks’ continuous service by the matching week and average earnings of at least £129 a week, and the employer usually reclaims 92% of what it pays, or 109% with Small Employers’ Relief.

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Where do the Statutory Adoption Pay rules come from?

SAP is created by Part 12ZB of the Social Security Contributions and Benefits Act 1992, starting at section 171ZL, with the detailed rules in the Statutory Paternity Pay and Statutory Adoption Pay (General) Regulations 2002. Section 171ZL(2) sets out the core conditions: a child is placed, or expected to be placed, with the person for adoption; the person has been in employed earner’s employment with the employer for a continuous period of at least 26 weeks ending with the relevant week; the person has stopped work; their normal weekly earnings for the 8 weeks ending with the relevant week are not below the lower earnings limit; and they have elected to receive SAP. Section 171ZL(3) defines the relevant week as the week in which the person is told they have been matched with the child.

Two further rules in section 171ZL catch employers out. Only one member of an adopting couple can elect to receive SAP, and a person who has elected to receive Statutory Paternity Pay for the adoption cannot also elect SAP. Under section 171ZL(5), placing more than one child as part of the same arrangement does not increase entitlement, so siblings placed together give one period of SAP.

Who qualifies for adoption leave and who qualifies for pay?

Leave and pay have different tests, so an employee can qualify for one without the other.

Test	Statutory Adoption Leave	Statutory Adoption Pay
Employment status	Must be an employee	Must be on your payroll
Length of service	None	26 weeks’ continuous employment up to any day in the matching week
Earnings	None	Average of at least £129 a week in the 8 week relevant period (2026 to 2027)
Evidence	Only if you ask for it	Proof of adoption required

The service test moves for other routes. For an overseas adoption the employee needs 26 weeks’ continuous employment at the start of the week in which pay will begin, and an employee adopting from overseas with a partner signs form SC6 to confirm they are not taking paternity leave or pay. In a surrogacy arrangement the 26 weeks must run up to any day in the 15th week before the baby is due.

HMRC’s employer guide lists people who cannot get either adoption leave or SAP: someone becoming a special guardian or kinship carer, someone adopting a stepchild or family member, and someone adopting privately without permission from a UK authority or adoption agency. Where the adopter’s partner wants time off, they may qualify for Statutory Paternity Pay instead. Whether the couple can share the leave is a separate question covered in our guide to shared parental pay.

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How much is SAP and how are average weekly earnings worked out?

For 2026 to 2027 HMRC’s rates and thresholds for employers set SAP at 90% of average weekly earnings for the first 6 weeks and £194.32 or 90% of average weekly earnings, whichever is lower, for the remaining weeks. HMRC’s calculation guidance says SAP is usually paid for 39 weeks, so that is 6 weeks at the higher rate and 33 weeks at the standard rate. Tax and National Insurance are deducted in the normal way.

Average weekly earnings include all earnings on which Class 1 National Insurance is due, or would be due if they were high enough. The relevant period usually covers 8 weeks before the matching week (Sunday to Saturday). It ends on the last normal payday on or before the Saturday of the matching week and starts on the day after the last normal payday falling at least 8 weeks earlier. Weekly paid staff divide the earnings by 8. For monthly paid staff, divide by the number of months, multiply by 12 and divide by 52. HMRC says not to round the result to whole pence.

Illustration only. An employee’s average weekly earnings in the relevant period are £600. The first 6 weeks are paid at 90%, which is £540 a week, or £3,240. The remaining 33 weeks are paid at £194.32, because that is lower than £540, giving £6,412.56. Total SAP is £9,652.56. An employer recovering at 92% gets back £8,880.36; one qualifying for Small Employers’ Relief gets back £10,521.29.

Some practical rules from HMRC’s guidance:

SAP must be paid in cash. It cannot be sacrificed or set against benefits, although contractual benefits such as a company car or phone carry on during leave.
The pay period can start on any day of the week, usually the day after the employee last worked, and you can pay part weeks by dividing the weekly rate by 7.
For a director paid only by a formal shareholders’ vote, the vote dates replace normal paydays, and money drawn in anticipation of a vote is left out of average weekly earnings even if National Insurance was deducted.

When can adoption leave start and what notice is needed?

Employees can take up to 52 weeks of Statutory Adoption Leave: 26 weeks of Ordinary Adoption Leave followed by 26 weeks of Additional Adoption Leave. For a UK adoption, leave can start on the day the child starts living with the employee or up to 14 days before the expected placement date. For an overseas adoption it starts when the child arrives in the UK or within 28 days after. In a surrogacy arrangement it starts on the day the child is born or the day after.

For a UK adoption, within 7 days of being matched the employee must tell you how much leave they want, the start date and the expected or actual placement date. For SAP they must give 28 days’ notice before they want pay to start, unless the gap between matching and placement is shorter. You then have 28 days to confirm the leave start and end dates in writing. Overseas adopters must tell you within 28 days of receiving the official notification, and surrogacy parents at least 15 weeks before the due date. Changes to the start date need 28 days’ notice, and a change to the return date needs 8 weeks’ notice. Notice does not have to be in writing unless you ask for it.

What evidence can you ask for and can you refuse?

Proof is needed for SAP but not for leave unless you request it. For adoption it must show the agency’s and employee’s names and addresses, the matching date (for example the matching certificate) and the expected or actual placement date. Overseas adopters also provide the official notification and evidence of the child’s arrival date. In a surrogacy case you can ask for a statutory declaration that the employee intends to apply for a parental order within 6 months of the birth and expects it to be granted.

You cannot refuse adoption leave or change the amount taken. If the employee gave the wrong notice without a reasonable excuse you can delay the start, but you must write to them within 28 days of the leave request. You can refuse SAP only if the employee does not qualify, by giving them form SAP1 within 7 days of your decision. They must receive it within 28 days of their request or the matching date, whichever is earlier.

How does the employer recover SAP?

Employers usually reclaim 92% of SAP, even if they pay more than the statutory amount under a company scheme. The rate rises to 109% under Small Employers’ Relief where total Class 1 National Insurance in the last complete tax year before the matching week was £45,000 or less, ignoring reductions such as the Employment Allowance. The claim goes on the Employer Payment Summary, and if payments cannot be set off you can ask the PAYE Employer Office for a repayment, but not until the next tax year starts. An employer who cannot afford the payments can apply for an advance. The mechanics are covered in our guide to recovering statutory payments.

SAP still has to be paid if the business stops trading.

What records are needed and where do employers go wrong?

Keep the proof of adoption, the date SAP started, every payment and its date, amounts reclaimed and any weeks not paid with the reason, for 3 years from the end of the tax year they relate to. Form SAP2 or your own records will do.

Common mistakes:

Testing service and earnings against the placement week instead of the matching week.
Refusing leave to a new starter. Leave is a day one right; only pay depends on service.
Paying SAP to both members of a couple for the same child, or paying two periods for siblings placed together.
Counting a director’s drawings made in anticipation of a vote as earnings.

For birth parents the rules differ in detail; see Statutory Maternity Pay. If a child dies after placement, Statutory Parental Bereavement Pay may also apply.

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Reviewed by Christine Anderson, Broker, Solar Protect. Last reviewed 19 October 2026. Part of Accountapedia, the Solar Protect guide to UK tax and accounting. This page is general information, not personalised advice.