Employers in the UK are legally required to provide statutory maternity and paternity pay to eligible employees, ensuring financial support during significant family events. In 2026/26, over 600,000 babies are expected to be born in the UK, highlighting the importance for businesses to understand their obligations around Statutory Maternity Pay (SMP) and Statutory Paternity Pay (SPP).
| Pay Type | Eligibility | Maximum Duration | Weekly Rate (2026/27) |
|---|---|---|---|
| Statutory Maternity Pay (SMP) | Employed 26+ weeks by week 15 before baby due date, earning ≥ £123/week | Up to 39 weeks | £172.48 or 90% of average weekly earnings (whichever is lower) for 6 weeks, then £172.48 for 33 weeks |
| Statutory Paternity Pay (SPP) | Employed 26+ weeks by 15 weeks before baby due date, earning ≥ £123/week | Up to 2 weeks | £172.48 or 90% of average weekly earnings (whichever is lower) |
Understanding Statutory Maternity Pay (SMP)
Statutory Maternity Pay is a government-mandated payment that eligible employees can receive during maternity leave. SMP is designed to provide financial support to women who take time off work to have a baby, adopt a child, or experience a stillbirth after 24 weeks of pregnancy.
To qualify for SMP, an employee must have worked continuously for their employer for at least 26 weeks by the 15th week before the expected week of childbirth (EWC) and earn at least £123 per week (the Lower Earnings Limit, or LEL, for 2026/26). The pay lasts up to 39 weeks, split between an initial 6 weeks at 90% of their average weekly earnings and the remaining 33 weeks at the standard rate of £172.48 per week (or 90% of average weekly earnings if this is lower).
Employers must notify employees about SMP rights and processes, and employees must provide appropriate notice and proof, such as a MAT B1 certificate, to claim SMP.
Statutory Paternity Pay (SPP) Explained
Statutory Paternity Pay is available to eligible employees who are fathers, partners, or intended parents of a child. It provides financial assistance for up to two weeks of paternity leave, which must be taken within 56 days of the child’s birth.
Eligibility criteria closely mirror those for SMP: the employee must have worked for the employer continuously for 26 weeks by the 15th week before the expected week of childbirth and earn at least £123 per week. The weekly pay rate is the same as SMP’s standard rate of £172.48 or 90% of average weekly earnings if lower.
Employees must give their employer at least 15 weeks’ notice before the expected week of childbirth and complete a self-certification form to claim SPP.
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Calculating Maternity and Paternity Pay
Calculating SMP and SPP requires careful attention to an employee’s average weekly earnings and relevant pay periods. HMRC provides guidance on how to work out these payments accurately.
How to Calculate Average Weekly Earnings
To calculate average weekly earnings for SMP and SPP, employers should use the employee’s gross earnings in the eight weeks leading up to and including the 15th week before the expected week of childbirth or the week the employee gives notice for paternity leave.
- Include all taxable earnings such as bonuses, commission, and overtime.
- Exclude any statutory payments, benefits in kind, and expenses.
- Divide total earnings by the number of weeks worked in that period.
Once average weekly earnings are calculated, compare it to the weekly SMP/SPP rate (£172.48 for 2026/26). SMP pays 90% of earnings for the first 6 weeks and the lesser of £172.48 or 90% for the remaining 33 weeks. SPP pays the lesser of £172.48 or 90% for up to 2 weeks.
Reclaiming SMP and SPP from HMRC
Employers can recover most SMP and SPP payments from HMRC through the PAYE system. This helps reduce the financial burden on businesses, especially small employers.
For 2026/27, small employers (those with an annual National Insurance contributions bill under £45,000) can reclaim 103% of SMP and SPP paid, including the employer’s National Insurance contributions. Larger employers can reclaim 92%.
To reclaim, ensure that SMP and SPP payments are reported correctly on the employee’s Full Payment Submission (FPS) via payroll software. HMRC typically refunds eligible amounts monthly through PAYE tax credits.
Employers’ Obligations and Best Practices
Employers must comply with UK employment law, as set by GOV.UK and HMRC, regarding maternity and paternity pay and leave. Failure to comply can result in penalties and legal claims.
Key employer responsibilities include:
- Informing employees about their rights to SMP and SPP.
- Keeping accurate records of employment dates, pay, and leave.
- Ensuring statutory payments are made on time.
- Respecting employees’ rights to return to work after leave.
- Updating payroll systems to handle maternity and paternity pay correctly.
Employers should also consider implementing clear maternity and paternity policies and providing training to HR staff to reduce errors and improve employee experience.
- SMP lasts up to 39 weeks; SPP lasts up to 2 weeks, with eligibility based on continuous employment and earnings.
- Employers pay SMP/SPP upfront but can reclaim most costs from HMRC through PAYE.
- Average weekly earnings must be accurately calculated to determine payment amounts.
- Clear communication, record keeping, and adherence to legal obligations protect both employers and employees.
- Refer to official GOV.UK and HMRC guidance for the latest rules and rates.
Further Resources for Employers
For more detailed information, employers can consult the following GOV.UK resources:
- PAYE for Employers
- Employment Law Basics
- Statutory Maternity Pay and Leave (GOV.UK)
- Statutory Paternity Pay and Leave (GOV.UK)
Employers unsure about classification of workers or payroll obligations may also find our Sole Trader vs Limited Company guide helpful.
Who is eligible for Statutory Maternity Pay?
Employees must have worked continuously for their employer for at least 26 weeks by the 15th week before the expected week of childbirth and earn at least £123 per week to qualify for SMP.
How do employers reclaim SMP and SPP payments from HMRC?
Employers reclaim SMP and SPP through the PAYE system by reporting payments on the Full Payment Submission. Small employers can reclaim 103% of payments, while larger employers reclaim 92%.
What are the main differences between SMP and SPP?
SMP is paid to eligible employees taking maternity leave for up to 39 weeks, whereas SPP is for paternity leave and lasts up to 2 weeks. Both have similar eligibility criteria but differ in duration and qualifying conditions.
Official Sources
* GOV.UK: Set up a business · * HMRC: Income Tax rates · * HMRC: Corporation Tax · * HMRC: VAT registration