Statutory Maternity Pay (SMP) is paid by the employer for up to 39 weeks to an employee who has 26 weeks’ continuous service into the qualifying week and average weekly earnings at least equal to the National Insurance lower earnings limit over an 8 week relevant period. For 2026 to 2027 it is 90% of average weekly earnings for the first 6 weeks, then £194.32 or 90% of average weekly earnings, whichever is lower. Employers recover 92% of what they pay, or 109% if they qualify for Small Employers’ Relief.
Which employees qualify for SMP?
The entitlement comes from section 164 of the Social Security Contributions and Benefits Act 1992. HMRC’s employer guide turns it into five tests. The employee must:
- be on your payroll in the qualifying week, which is the 15th week before the expected week of childbirth;
- have been continuously employed by you for at least 26 weeks up to any day in the qualifying week;
- have average weekly earnings in the relevant period of at least the lower earnings limit in force at the end of the qualifying week;
- give you the correct notice; and
- give you proof of pregnancy.
The lower earnings limit for 2026 to 2027 is £129 a week, so that is the test for a qualifying week ending in this tax year. Maternity leave is different: any employee with an employment contract can take up to 52 weeks of leave regardless of service. So an employee can be entitled to leave but not to SMP, in which case she may be able to claim Maternity Allowance instead.
An employee who leaves after the qualifying week keeps her SMP. HMRC’s guidance says it does not matter why she left or whether she is coming back, and you cannot ask her to repay it.
How do you work out the relevant period and average weekly earnings?
The relevant period is usually the 8 weeks before the qualifying week, but it is fixed by paydays rather than calendar weeks. It ends with the last normal payday on or before the Saturday of the qualifying week and starts the day after the last normal payday falling at least 8 weeks before that. Add up all earnings paid in that window on which Class 1 National Insurance is due, or would be due if earnings were high enough, then convert to a weekly figure:
- Weekly paid: divide by the number of weeks in the period (normally 8).
- Monthly paid: divide by the number of months, multiply by 12 and divide by 52.
- No regular pay pattern: divide by the number of days in the period and multiply by 7.
HMRC says not to round the result. Overpayments and underpayments actually paid in the period are included. Salary sacrifice reduces average weekly earnings because only earnings actually paid count, but SMP itself cannot be sacrificed. If a pay rise is awarded that is effective at any time between the start of the relevant period and the end of statutory maternity leave, you must recalculate average weekly earnings as though the rise applied from the start of the relevant period and pay any extra SMP due.
When does SMP start?
The employee must give 28 days’ notice of the date she wants SMP to start, usually the same day her leave starts. The earliest maternity leave can start is 11 weeks before the expected week of childbirth. Several events override the chosen date:
- Early birth: leave and the SMP pay period start on the day after the birth.
- Pregnancy related absence: if she is off because of the pregnancy in the 4 weeks before the expected week of childbirth, leave and SMP start the day after the first complete day of absence.
- Leaving employment: if she leaves before the 11th week before the due week, SMP starts at the earlier of that 11th week or the day after the birth; if she leaves later, it starts the day after she leaves.
She must take at least 2 weeks’ leave after the birth, or 4 weeks if she is a factory worker.
How is SMP paid through payroll?
SMP is a weekly payment, paid on the normal payday for the same period as wages. Pay weeks run from the first day of the pay period, so an SMP period starting on a Wednesday has Wednesday to Tuesday pay weeks. You can pay part weeks by dividing the weekly rate by 7 and multiplying by the days due in the pay period. Tax and National Insurance are deducted as for wages. HMRC warns that paying SMP as a lump sum can increase National Insurance for both employer and employee.
Some rules catch employers out. SMP must be paid in cash and in full, so it cannot be offset by non cash benefits or the value of childcare vouchers. If the employee falls sick during the maternity pay period you keep paying SMP, not Statutory Sick Pay. She can work up to 10 keeping in touch days without losing SMP; any work on a day counts as a whole day, and after the tenth day she loses a week’s SMP for each week or part week she works. Pay for keeping in touch days is agreed between you, but it must respect the National Minimum Wage. You must still pay SMP even if you stop trading.
What evidence do you need, and how do you refuse SMP?
You must have proof of pregnancy before paying, usually form MATB1, which midwives and doctors normally issue around 20 weeks before the due date. The employee should give it to you within 21 days of the SMP start date; you can accept it later, but you do not have to pay if you have not received it 13 weeks after the SMP start date. Keep a copy.
If she does not qualify, give her form SMP1 within 7 days of your decision. She must receive it within 28 days of her request for SMP or the birth, whichever is earlier. She may then be able to get Maternity Allowance instead.
How do employers recover SMP?
You recover SMP by reducing what you pay HMRC. Your payroll software reports the amount on an Employer Payment Summary (EPS). The recovery rate for 2026 to 2027 is:
| Employer’s Class 1 National Insurance in the relevant tax year | Recovery rate |
|---|---|
| Above £45,000 | 92% |
| £45,000 or lower (Small Employers’ Relief) | 109% |
The Class 1 figure is total employee and employer contributions in the last complete tax year before the qualifying week, ignoring reductions such as the Employment Allowance. If what you can recover is more than your PAYE liabilities, you can write to HMRC for a repayment, but not until the next tax year starts. If you cannot afford the payments you can apply for advance funding up to 4 weeks before the first payment; incorrect information in an application can attract a penalty of up to £3,000 per employee for each tax year. Recovery only covers the statutory amount, so any enhanced maternity pay is a cost to the business.
Keep records for 3 years from the end of the tax year they relate to: the proof of pregnancy, the date SMP began, payments and dates, amounts reclaimed and any weeks not paid with the reason.
What does a full calculation look like?
Illustration only. An employee earns £600 a week and meets every condition, with her SMP starting in 2026 to 2027.
| Period | Weekly SMP | Total |
|---|---|---|
| Weeks 1 to 6: 90% of £600 | £540.00 | £3,240.00 |
| Weeks 7 to 39: lower of £194.32 and £540 | £194.32 | £6,412.56 |
| Total SMP | £9,652.56 |
A larger employer recovers 92%, which is £8,880.36. A small employer recovers 109%, which is £10,521.29. If she later curtails her pay to share it, the remaining weeks become Shared Parental Pay.
What mistakes do employers make?
- Using the wrong relevant period, for example the last 8 calendar weeks before leave starts.
- Applying an out of date lower earnings limit; the test uses the limit in force at the end of the qualifying week.
- Not recalculating after a backdated pay rise.
- Paying SSP instead of SMP when the employee is sick during the pay period.
- Stopping SMP when the employee resigns after the qualifying week.
- Reclaiming 92% or 109% of enhanced contractual pay rather than of the statutory amount.
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Related Accountapedia entries
- Statutory Paternity Pay: employer rules
- Maternity Allowance for the self employed
- Recovering statutory payments and Small Employers’ Relief
- Statutory Neonatal Care Pay
- Employing a nanny: payroll and tax
Sources
- legislation.gov.uk: Act 1992 c. 4, section 164
- GOV.UK: Employers maternity pay leave
- GOV.UK: Statutory maternity pay manually calculate your employees payments
- GOV.UK: Rates and thresholds for employers 2026 to 2027
- GOV.UK: Statutory maternity pay employee circumstances that affect payment
- GOV.UK: Recover statutory payments
Reviewed by Christine Anderson, Broker, Solar Protect. Last reviewed 8 October 2026. Part of Accountapedia, the Solar Protect guide to UK tax and accounting. This page is general information, not personalised advice.